Saturday, July 1, 2017

The Irrawaddy Magazine

The Irrawaddy Magazine

The Irrawaddy Business Roundup (July 1)

Posted: 30 Jun 2017 11:47 PM PDT

India Hands Over Cargo Ships

India this week handed over six cargo vessels to Myanmar to support the Kaladan Multimodal Transport Project, a bilateral project that will connect the two countries via a water route from Rakhine State's Sittwe to Paletwa in Chin State and a road from Paletwa to Zorinpui in Mizzoram State, India.

The ships were built in Dala, Dagon Seikan and Dawbon dockyards in Yangon.by Myanmar's Inland Waterways Transport at a cost of US$89 million, according to a statement by the Indian embassy in Yangon.

The vessels are 45 meters long and 9.5 meters wide and have a cargo capacity of 300 tons.

Work is continuing on the Kaladan project at Sittwe and Paletwa ports.

IFC Invests in Microfinance

The International Finance Corporation (IFC) has committed a financing package of $13.5 million for Myanmar-based microfinance institutions.

The package includes a $1.5 million stake in Maha Agriculture Public Company and $6 million in loans each to Fullerton Finance (Myanmar) Company, in which the IFC already holds a 15 percent stake, and Early Dawn Microfinance Company.

The move is intended to support microfinance businesses to engage the largely untapped rural, low income market segment.

Demand for microcredit for small enterprises and poor households underserved by mainstream banks is estimated to exceed supply by three-fold, according to an IFC statement.

"Improving access to microfinance will help unlock the great potential of the rural sector and small enterprises by providing much needed financing to increase productivity and create jobs, incomes and prosperity for a significant number of workers in this country," said Vikram Kumar, IFC country manager for Myanmar.

The deals "fit with a strategic IFC focus in Myanmar to develop a sustainable and responsible commercial microfinance sector to serve urban and rural poor,'' the statement said.

It added that the IFC is mitigating lending risks through development of a central credit bureau, expected to be launched later this year following the issuance of a landmark IFC-supported credit reporting regulation in March.

"Going forward, IFC will introduce responsible business practices to microfinance institutions and promote financial-consumer protection through knowledge transfer activities with regulators and industry players,'' according to the statement.

The IFC is a member of the World Bank Group. It conducts investments that are intended to "leverage the power of the private sector to help end poverty and boost shared prosperity.''

Investment Firm Looks at Expansion

Private equity firm Delta Capital is close to finalizing another $50 million in investments after its first round raised the same amount, the company's founder and managing partner Nick Powell told DealStreet Asia.

By November it expects to have raised $150 million in total since the firm was founded in 2013 in Myanmar.

In the first round the firm invested in oil and gas, alcoholic beverage manufacturing, an internet service provider, a local business conglomerate and a domestic bottle manufacturer. For the second round the firm is looking to close investments in the consumer and ICT sectors.

Powell founded Delta Capital as a partnership between Hong Kong-based assets management company, SMC Capital and Serge Pun & Associates.

The fund-raising for the second fund has garnered interest from European family offices and wealthy Asian families, according to the report. The firm is also seeking to be the first Myanmar-focused private equity fund to get investments from Development Finance Institutions (DFIs).

Rubber Plant Mooted for Mon State

Plans for a rubber manufacturing plant in Mon State have been discussed by Ministry of Industry and Thaton Township officials, the Global New Light of Myanmar reported.

The plan was discussed at the annual general meeting of the Thaton Township Rubber Planters and Producers Association on 23 June, according to the report.

Association Chairman Dr. Than Myo said the project is needed because of high level of international demand for high-quality rubber, while Myanmar has struggled to produce a quality product.

Most of Myanmar's rubber producers are small holder farmers using traditional farming methods.

Thaton Township is a rubber-growing hub with 40,000 acres under cultivation, although only half of that acreage produces rubber of sufficient quality for export to China, India, South Korea and Japan.

Myanmar has more than 1.6 million acres of rubber plantations and rubber latex is produced by over 700,000 acres of rubber land, according to the report. It added that most of Myanmar's rubber goes to China through cross-border trade stations, while other countries receive shipments by sea.

Trade With India on the Rise

Myanmar's trade with India grew by 6 percent from 2015 to 2016 to the same period the following year, according to a report.

The figure was given by India's minister of Commerce and Industry Nirmala Sitharaman, at the 6th Joint Trade Committee Meeting between India and Myanmar this week.

Myanmar's exports to India were $1.06 billion in 2016 to 2017, a growth of 8.43 percent over the previous year.

Imports from India were $1.11 billion, up by 3.79 percent.

Sitharaman told media that the bilateral trade potential between the two countries remains untapped and she sought Myanmar's cooperation in actively pursuing enhanced road, sea and air connectivity between the two countries.

She urged Myanmar to expedite work on the Kaladan Multimodal Transport Project in Rakhine State and to speed up completion of work on the waterway linking the port of Sittwe with the interior.

The post The Irrawaddy Business Roundup (July 1) appeared first on The Irrawaddy.

This Week in Parliament (June 26 – June 30)

Posted: 30 Jun 2017 11:34 PM PDT

Monday (June 26)

In the Lower House, Daw Nan Kham Aye of Namtu Township asked the Union government to share five percent of the profits of the China-backed Shwe natural gas pipeline for the development of Shan State. Deputy Minister of Electricity and Energy Dr. Tun Lwin replied that State-owned Myanma Oil and Gas Enterprise (MOGE) has invested in the project through Chinese loans and is still paying the loans, and therefore has not received profits.

The Lower House recorded the proposal of Nyaungshwe (Yawnghwe) Township lawmaker U Win Myint Oo which urged the Union government to adopt inclusive plans for the sustainability of Inle Lake, which is a landmark in Shan State.

In the Upper House, in response to a question by Dr. Kyaw Than Htun of Mandalay Constituency (3) about Myanmar traditional herbal medicines sold across the country, Health Minister Dr. Myint Htwe replied that his ministry would standardize the botanical names of herbs and raw materials used in making traditional medicines to ensure their safety and effectiveness.

Tuesday (June 27)

Dekkhinathiri Township lawmaker U Thant Zin Tun asked the Lower House if the Naypyidaw Development Committee would take back inactive lands earmarked for projects and implement new villages and wards on them. Naypyidaw Council member U Aung Myin Tun replied that the council currently had no plans to build new wards or villages.

Tanai lawmaker U Lin Lin Oo urged the Myanmar Army to stop blocking commodities from being transported to his township in Kachin State. Deputy Defense Minister Maj-Gen Myint Nwe explained that more rice and fuel were being sent into Tanai than necessary, and that the Kachin Independence Army (KIA) was receiving the surplus and benefitting from imposing taxes on rice and fuel shipments.

In the Upper House, lawmaker Dr. Zaw Lin Htut of Mon State Constituency (9) asked what services and medicines the Ministry of Health and Sports were providing free of charge to people. Minister for Health and Sports Dr. Myint Htwe replied that while his ministry was providing free medicines depending on the budget, it was also implementing a national health plan (2017-2021) which aimed to provide basic health care services for citizens at a low cost across the country by the 2020-21 fiscal year.

Wednesday (June 28)

In Union Parliament, lawmakers urged the government to re-consider loans obtained from China because of the high interest rates involved. According to the mid-term debt management strategy report submitted by the Ministry of National Planning and Finance to the legislature, Myanmar owes a total of US$9 billion, of which 44 percent is obtained from China. The interest rate of China's loans is also the highest at 4.5 percent. Lawmakers urged the government to negotiate with the Chinese government to reduce the interest.

Thursday (June 29)

In the Lower House, lawmaker U Hla Htay Win urged the government to firmly reject a UN fact-finding mission and use of the word 'Rohingya.' Deputy Foreign Minister U Kyaw Tin replied that the Myanmar representative dissociated Myanmar from the UN resolution at the UN Human Rights Council in March, in which it was decided that a fact-finding mission would be sent to investigate human rights violations in Rakhine State and elsewhere throughout Myanmar, and that countries like India and China also disagreed with the resolution.

The Lower House also approved the proposal of Waw Township lawmaker U Tin Htwe to draw sports calendars at high schools, universities and colleges for the development of Myanmar's sports.

In the Upper House, Dr. Khun Thaung Win of Kachin State Constituency (11) asked about the government's plans for the building and land where the national convention was held to draft the 2008 Constitution in Nyaungnabin in Yangon's Hlegu Township. Deputy Construction Minister U Kyaw Lin replied that an industrial area, a research and development center, industrial training school, and residential and business buildings would be implemented on those lands.

Friday (June 30)

The Lower House recorded the proposal of Gangaw Township lawmaker Daw Yin Min Hlaing to introduce reforms to nursing for the improvement of health care service delivery.

In the Upper House, U Ye Htut of Sagaing Constituency (5) asked if the government would provide land rent and crop compensation for farmers who refused to accept compensation after their farmlands were fenced in by China's Wanbao Co. at the Letpadaung Copper Mine. Minister for Natural Resources and Environmental Conservation U Ohn Win said that the Sagaing Division government collected the name lists of farmers who refused to accept compensation and would closely supervise the Chinese company to see that compensation is provided as soon as possible.

The post This Week in Parliament (June 26 – June 30) appeared first on The Irrawaddy.

Dateline Irrawaddy: Lurking Pitfalls for NLD Politicians

Posted: 30 Jun 2017 09:52 PM PDT

Kyaw Zwa Moe: Welcome to Dateline Irrawaddy. On June 24-25, the National League for Democracy (NLD) held its central executive committee (CEC) meeting. NLD CEC member and lawmaker in the Upper House, U Aung Kyi Nyunt, said the NLD is facing three major dangers.

He said party members at different levels are facing the danger of being misguided, the NLD is facing the danger of being exploited, and another danger is that NLD party members are acting arrogantly.

So, this week, we'll discuss how serious this problem is, and what we can point out. Director Ko Thwin Lin Aung of civil society organization Genuine People's Servants and journalist Ko Thiha of NHK [Japanese acronym for the Japan Broadcasting Corporation] join me to discuss this. I'm Irrawaddy English editor Kyaw Zwa Moe.

What U Aung Kyi Nyunt said at the NLD CEC meeting on June 24-25 made the headlines in the newspapers. Let's define what he said: by "misguided," does he mean NLD party members at different levels are being bought and put into the pockets of businessmen and cronies? By exploitation, does he mean other parties or political organizations are using [the NLD] for their own benefits? In terms of arrogance, we journalists as well as some other people have borne witness to it. So, Ko Thiha, how would you define those three?

Thiha: Being misguided is a problem facing various institutions. We can even find it in government mechanisms. Cronies especially, and those with strong financial backgrounds who have monopolized government projects in successive periods, are able to approach and persuade NLD leaders.  Yes, this is a danger.

But the danger for the time being is that government institutions are hampering the [NLD-initiated] reforms by obliquely inducing [ministers appointed by the NLD] to accept their bureaucratic mechanisms, which they are good at, and have been engaged in for many years.

At first, when the NLD came to power, there were signs that the government [bureaucratic] mechanism would change. But gradually, those signs disappeared and things have gone back to their previous state. In other words, I'm suspicious that heads of government departments who have engaged in a deep-seated bureaucratic system for ages are misguided [NLD] leaders. This is how I understand the word "misguided."

KZM: Ko Thwin Lin Aung, what is your assessment of those dangers?

Thwin Lin Aung: I'm quite happy that U Aung Kyi Nyunt has pointed these out, because they are the existing dangers. There is a Burmese saying that when something is too big, it is difficult to see it.

The danger is too big—too big that they don't see it. We really wanted to point that out. But sometimes, it is difficult for us to do so because of the level of success the NLD has achieved and its reputation as the people's party.

Under such circumstances, I'm quite happy that a CEC member of the party has pointed those out. On the other hand, the market economy we're practicing is capitalism. So, [the government] has to engage with capitalists. We can't hope for their fall like communists do.

When people in positions of political power engage with them, the risk of being bought is quite large. I'm glad that U Aung Kyi Nyunt has pointed this out. Again, the transition is not yet over, and there are certain groups that do not want the transition to take place.

There is also the danger of them taking advantage by criticizing the NLD. While there must be opposition, which is a norm in a democracy, the NLD should be careful to make sure that such opposition doesn't overstep the boundaries of check and balance. Another factor is success. The NLD achieved great success in the 2015 [election]. There may be [NLD party members] who are too proud of that success and unconsciously display arrogance. Yes, there are. We are seeing them, so I'm grateful to U Aung Kyi Nyunt that he has explicitly warned about it.

KZM: As far as I'm concerned, U Aung Kyi Nyunt is the only CEC member since last year who has boldly pointed out or—in other words—criticized his own party. We're seeing NLD party members acting haughtily every day, and people are highly tolerant of it—perhaps because it is their favorite party, and they have chosen it themselves. Ko Thiha, as a journalist you have interviewed NLD party members. Do you ever feel put out when you talk to senior or mid-level leaders of the NLD?

Thiha: The first problem we faced was that when the NLD started to form its government, people speculated about the president and chief minister positions. And there were problems when we engaged with those who were tipped as future ministers or the like, as they were pressured at the time. Some people didn't get the high positions they had expected. Some felt pressures because of the responsibility of their positions. And some were, you know, putting on airs. Some are under pressure as they are afraid that they would accidentally say or make mistakes in their high positions. Sometimes, as they practise restraint to avoid mistakes, it looks like they, especially party leaders, are haughty. And some act like 'I don't care whatever you say.' To put it bluntly, those people could not resist the sense of achievement. Again, it is also partly because they have not been honed properly for it. As they got something big all of a sudden, they don't feel at ease, and perhaps they had not prepared to be able to adapt to the new environment. Again, perhaps they don't have the idea of mending themselves even after they are confronted by criticism. Most of them are sensitive to criticism. And people have tolerated their faults all because of Daw Aung San Suu Kyi. As much as the people have shown tolerance, those who criticize [the NLD] have drawn criticism themselves. So, those who are too proud of themselves have got out of control. This is what is happening.

KZM: There are ministers under the U Thein Sein government who were infamous for what they said. For example, minister U Ohn Myint said he had gone around the country and slapped people. But no incumbent minister is that bad under the new government. But as U Aung Kyi Nyunt has said, they acted with an 'I don't care' attitude in dealing with media. For instance, U Win Htein was known for calling a reporter an idiot six times in an interview, and this attitude has created hostility between him and the media. He could have chosen not to say it, but as he said it, it caused problems. What is your assessment? Are they unprofessional as a politician or haughty as U Aung Kyi Nyunt has said?

Thiha: Talking of U Win Htein, he is mentioned quite frequently in the media. NLD party members avoid the media for fear that they would say something mistaken. But, U Win Htein talks to all media. It is his good point. As every media outlet approaches him, and as he sometimes makes remarks recklessly, it was covered repeatedly in the media. This has happened time and again, but he still doesn't exercise restraint. Recently, he said again that he doesn't care what people say about of them. It is very bad. We don't think he said it on behalf of the party. But he said it at the party CEC meeting and this has raised question, and grabbed the headlines.

Yes, talking of slapping is far worse. If there were no leaders like Daw Aung San Suu Kyi, Uncle U Tin Oo and U Win Tin in the NLD, such words would surely attract severe criticism. This is the difference between the previous government and current government. Under the previous government, people didn't like what the ministers said as well as the ruling party they represented, so they responded angrily. And under the new government, people are frustrated that they act like that despite there being leaders like Daw Aung San Suu Kyi. And it seems that the media also bears them acting like that. This is not a good development.

KZM: Ko Thwin Lin Aung, their standpoints might be right. But the problem is they are politicians and political leaders, and, as they are elected by the people and represent the people, they are the public figures, I think. To what extent would their actions impact the NLD?

TLA: I think there is an impact. What U Aung Kyi Nyunt has said has made headlines in every journal, and so it is like a white spot coming out of the dark black. This is how I see it.

KZM: His words are welcomed by many, as he spoke the truth.

TLA: What he pointed out is happening in reality, but no one mentioned it before him. So, as he was the first person to point it out, it has attracted particular attention from the people.

KZM: After the NLD-led government assumed office, some criticized Daw Aung San Suu Kyi as not being friendly toward the media. In fact, in any country, persons in top positions like the president or the State Counselor need not meet the media frequently. Ko Thiha, do you think they are not friendly to the media? Some say that people view Daw Aung San Suu Kyi as a mother rather than a leader. As you know, many call her mother Su. So, she is not friendly, but she is motherly. She treats us as if she were a mother.

Thiha: My view is that Daw Aung San Suu Kyi had a lot of pressures after she has become the State Counselor. She is very busy. Perhaps she has a lot to think about because of her responsibilities. So, she is not ready to meet the media. She can't give doorstep interviews to the media while she is on the go like she did in the past. Previously she used to give doorstep interviews on the go. But now, she avoids it, and perhaps she exercises caution in response to the criticism of media. But I think she does this just for work purposes. Personally, she has not changed. If we ask her 'how are you aunty?' she would smile and say 'I'm good, how about you, son?' So there is no problem with her personal relations. However, compared to the past, I think she exercises greater caution in speaking to the media.

KZM: Ko Thwin Lin Aung, you mean if party members at different levels, senior levels, mid-levels, and perhaps the lower level, have such problems engaging with people, media, or the society at large, it will have an impact on the party. The next election will be held in 2020. If such things can not be controlled, it will have an impact. All the way, the NLD has been the most popular party in 1990, 2012, and 2015 elections. But after it came to power, people are feeling frustrated. And groups like the 88 Generation students are also planning to establish a political party. To what extent do you think these factors will result in a political shift? Maybe it is not a serious problem. But what if party leaders could not control the things pointed out by U Aung Kyi Nyunt?

TLA: I think it will have a considerable impact. Besides those things pointed out by U Aung Kyi Nyunt, there is a problem with the NLD's party policy. Parties have to take action according to their policies. And their policies should reflect the voices of the people. Sometimes the NLD is weak in that aspect, and I think they are overconfident because of the big success they have achieved. When their policy doesn't meet the needs of the people, rather than trying to adjust it, they are acting stubbornly, like 'our policy is not wrong, we are the people's party.' Such an attitude is quite problematic. This would lead to a big change of results in the 2020 election. As for the other people [trying to establish political parties], they are trying with goodwill. I think those who are concerned that people would be frustrated with the NLD and switch to [the USDP], which is unacceptable because of its history, are trying to fill the gap. They are doing so not because they view the NLD as an opponent, I believe.

KZM: U Aung Kyi Nyunt has pointed those things out as a visionary and dutiful party member. There are many people like him in the NLD. But very few in the party like Uncle U Tin Oo, the NLD patron, and U Win Tin talk and listen respectfully when dealing with people and the media. I think there is a need for NLD, as a leading party, to have and nurture such people. Thank you for your contributions!

The post Dateline Irrawaddy: Lurking Pitfalls for NLD Politicians appeared first on The Irrawaddy.

The Military’s Offensive Against the Media

Posted: 30 Jun 2017 08:23 PM PDT

We journalists are under attack. Press freedom is in jeopardy in Myanmar.

The last act of aggression happened on Monday when the military arrested The Irrawaddy's senior reporter Lawi Weng and two Democratic Voice of Burma (DVB) reporters, Aye Nai and Pyae Bone Naing, also known as Pyae Phone Aung.

Now the military has charged them as having violated Article 17(1) of the Unlawful Associations Act as they ventured into territory controlled by the Ta'ang National Liberation Army, as part of a reporting trip.

The arrest and charges demonstrate that either Myanmar's military leaders don't understand the nature and purpose of the media, or that this was a deliberate act intended to frighten journalists away from covering sensitive issues that could lead to criticism of the armed forces.

If the military arrested Lawi Weng and two DVB reporters due to what they describe as a connection to ethnic armed rebels, they would have to arrest hundreds of journalists who work for independent media across the country.

I am sure that nearly all Myanmar journalists have made contact at least once with members of "unlawful" ethnic armed groups, as all publications across the country have covered the peace process—one of the most important issues facing the nation.

Heads of key institutions, including the army and those within the current government, must understand that journalists need to talk to people from all sides of a conflict in order to verify facts, to be able to provide accurate information, and to interpret complex situations and perspectives. If we were to not do this, we would be failing to provide comprehensive information to the public.

Since 2011, when ex-President Thein Sein took office and his administration started negotiations with ethnic armed organizations, we journalists also started covering issues concerning conflict more openly. We approached it with a sense of responsibility to help end seven decades of civil war.

Journalists from many publications in the country have traveled to conflict zones, including areas controlled by ethnic armed groups, to speak with rebel leaders, their soldiers, ethnic civil society groups, residents, and refugees.

We have repeatedly interviewed and had conversations with leaders and members of such groups whenever the previous and incumbent governments held meetings or conferences relating to peace and conflict in Naypyidaw, Yangon and elsewhere.

Over the past years, ethnic armed group leaders have flown to the capital or to Yangon from their headquarters to attend talks organized by both ex-President U Thein Sein's administration and the current Daw Aung San Suu Kyi-led administration. The most significant event was the Union Peace Conference, also known as the 21st Century Panglong, held by Daw Aung San Suu Kyi.

A number of rebel leaders attended the conference and made speeches alongside the State Counselor and the commander-in-chief of the military.

The most recent media arrests by the military are damaging press freedom, a principle that is considered a pillar of the democracy that we are trying to create. In fact, the arrests are limiting greater freedoms that have been realized since the lifting of draconian censorship laws by military-backed ex-President U Thein Sein in 2012.

These days, I tend to say to international guests and journalists that Myanmar is not an enemy of the press, as it was under the military regimes of past decades. But the situation seems to be headed backward.

While the military appears to be solely responsible for the arrest of Lawi Weng and the DVB reporters, the government holds responsibility, too.

We understand that the powerful Myanmar Army did not need approval or a green light from the State Counselor or the President or the National League for Democracy government in order to arrest those journalists. But Daw Aung San Suu Kyi and U Htin Kyaw are the two highest leaders in the country. I believe that they both are responsible for ensuring the protection of citizens' basic and professional rights, particularly when these rights are abused or mishandled by a powerful institution like the military.

Lawi Weng has been working for The Irrawaddy since 2007. He was a journalist doing his job, as were Aye Nai and Pyae Bone Naing. Since their arrest on Monday, I have sent three letters to the State Counselor, the President and the Minister of Information concerning Lawi's detention. I have requested that they assist us in finding a way to release him, as he and the other reporters were simply doing their duties as journalists, gathering information in a sensitive area.

To be honest, I do not know if either the President or the State Counselor can help out in this matter. But at the very least, I am sure that they can raise the issue with Myanmar's top military leaders.

Daw Aung San Suu Kyi and U Htin Kyaw, the military can be held accountable by your government: they have to answer your questions.

The arrest of these journalists is damaging the norms of democracy you've promised to achieve under your government. The charges they are facing are an attack on press freedom, which is essential to rebuilding and restoring peace to Myanmar.

As state leaders, you are responsible for securing our professional rights to do our job for our country. Please do not let us down.

The post The Military's Offensive Against the Media appeared first on The Irrawaddy.
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