Tuesday, December 12, 2017

The Irrawaddy Magazine

The Irrawaddy Magazine

Mandalay to Invite 20,000 Monks for Merit Making

Posted: 12 Dec 2017 07:00 AM PST

MANDALAY — The Mandalay Division government is organizing a mass donation ceremony in cooperation with Thailand's Dhammakaya Foundation for next month to strengthen relations between the two countries.

The ceremony, expected to draw some 20,000 monks from across the division and 60 monks from Thailand, is schedule for Jan. 21 at Mandalay's Chanmyatharzi Airport.

The organizing committee includes the Union minister of religion and culture, the chief minister of Mandalay and other regional government officials. According to the committee, this will be the second time that Thai monks will have joined such a ceremony in Mandalay but the first time that so many local monks will have taken part.

"This event will be unique for Mandalay because we've never done this before with so many monks," said U Soe Lin, the committee chairman.

"This event will not only strengthen relations between Myanmar and Thailand, but also preserve Buddhist culture in the country," he said. "As Mandalay is one of the centers of Buddhism, this will be a historically remarkable event."

According to the committee, the Dhammakaya Foundation, part of Thailand's Dhammakaya monastery, has donated 400,000,000 kyats ($293,000) for the event.

"We are now cleaning the Chanmyatharzi Airport because it has been abandoned for more than a decade, since the airport was moved to Tadaoo. Our chief minister chose this place to avoid traffic congestion from the event," said U Soe Lin.

The first mass donation ceremony, with 10,000 monks, was held in Mandalay in September 2015 in cooperation with the abbot of the Dhammakaya monastery, Luang Por Dhammajayo, who is currently wanted by the Thai government for money laundering.

The organizing committee said the event is expected to bring in at least 30,000 kyats in donations for each of the invited monks and that everyone was welcome to join.

Devotees interested in participating in the ceremony should contact the committee in Mandalay not later than Jan. 15.

The post Mandalay to Invite 20,000 Monks for Merit Making appeared first on The Irrawaddy.

Arakan Army Will Be Flashpoint For Peace Process: Researcher

Posted: 12 Dec 2017 05:48 AM PST

"Realizing Peace in Myanmar", a collection of background papers published by the Euro Burma Office in Myanmar between 2015-17 was launched on Monday at an event to mark the 20th anniversary of the founding of the EBO.

Author Paul Keenan compiled his research on the Myanmar conflict and highlighted the diverse nature of the conflict and the many obstacles that remain to peace.

Keenan has been based in Southeast Asia doing research on Myanmar for almost two decades and is the current consultant on research and analysis at EBO Myanmar.

He shared his perspectives on the Myanmar peace process with Irrawaddy senior report Nyein Nyein this week.

What is the key message in your book?

Paul Keenan: The key message I think is the fact that, for the conflict in Burma, people cannot just see it as a similar conflict elsewhere because there are far too many individuals who need to be given what they are asking for. Obviously, you know, it is very easy for international observers to see everything in a context where we've sorted out conflict in Sri Lanka and Bosnia. But those actors were three or four.

We are talking about a lot more here. And with some, like say, the Wa, they are very big and they are very well equipped. And they have very strong support. With some groups it is not the same. The main thing from what I see in the conflict is people don't fully understand this dynamic. They don't see the fact that one group might be recent, could be four or five years old. Another group could be 15 years old. One group is 25,000 people; one group is 100 or less. So they don't see that. You just see an organization and you think well these are heavily armed men fighting. But that is not what it's about. I think the conflict is more about understanding what each individual armed organization wants out of a final peace process. Some are prepared to accept less, others are not prepared to.

As the book is about peace in Myanmar, how do you perceive the current peace process in Myanmar? Has it been deadlocked as many observers have said?

I would say there is no deadlock. What I would say is the peace process has become very, very slow. There are a number of reasons for this. During the [former President U] Thein Sein regime, I would say, the peace process moved faster, primarily because the Thein Sein regime understood what it was they were dealing with better than the current government. The military aspect is very important in how fast and what can be achieved in a peace process.

The Myanmar peace process involves the Tatmadaw and many ethnic armed groups, it is unique.

Yes, it is very unique.

So how we could move forward to achieve peace quickly or in a certain period of time?

Well, to be honest I don't think you can move quickly. I don't believe any of the actors now are in a hurry. I think it serves them well to try and get the best they can out of the deal. Because they know when they agree to something, they will not be going back. Because if they do, it looks like they themselves caused the problem to the peace process. So you have a number of actors, who are hoping to strengthen their positions, sometimes by using other bigger armed organizations to support them; others who are hoping they can get what they want based on previous experience. But I don't see the peace process, regardless of how many meetings or peace conferences are held moving that quickly. I don't believe Tatmadaw sees significant changes next year. But I think we will see a lot more dialogue. Whether that dialogue is positive, I doubt it will be in the beginning. There are a number of actors who I think still remain in the pre-2012 mindset. As long as that exists, progress will be slow.

What do you mean by a number of actors are left with this [pre-2012] mindset, are they from both sides of the negotiation or one side?

To be honest, I think the military is happy with the position that they have. And also they are happy that there are divisions within the armed ethnic organizations, because it serves their purposes more than it does the armed ethnic organizations. So in that regard, that is why the peace process is unlikely to go quickly, because the Myanmar military at this moment in time does not necessarily feel that it has to put that much effort into it because it is allowing the government to run the peace process. So whereas the Myanmar military is prepared to watch the NLD-led government negotiate, it probably knows nothing substantial would happen soon. For them it is win-win. For the ethnic people, not so much.

What were challenges for you in finalizing this book? Although the sub-title says that they are papers from 2015 to 2017, you said you spent more time than that.

To be honest, the challenges are that there are a lot of minds being changed when it comes to what people want. That is not strange because we all make the same changes in our daily lives, let alone as something as serious it is. The process has become too administrative; there have been too many meetings and those meetings often say the same thing. They always end with "Well, we cannot agree to anything, until we go back and speak to our leaders." And then that requires another meeting that leads us to say, "Well actually, we are going to issue a statement." But the statement is the same like the one four months ago. So for me that's the most … odd part of it. Do you see what I mean? If you reduce the number of people involved, the faster things can get done. But with this, because there are so many different negotiations and negotiators, it is difficult for everyone to find common ground.

In terms of the many people participating, how could we promote inclusiveness, including integrating civil society members into the process further?

You have to ensure that the civil society actors are involved in the political dialogue. We cannot not include them. Obviously, the environmental section of the community has to be involved, the gender issue has to be taken into account. But before that happens, I think, you set out the guidelines for what you want. And then you go forward. If you invite everyone to the same meeting, whether you are deciding on military issues, whether you are deciding environmental issues, gender issues, and a number of different important aspects of the future society for the country, it has to be taken into account, the more people you invite the more divergent the outcome would be. So I think that's the important part of the process.

If you had to describe in one word the current Myanmar peace process, what would it be?

Complex!

In your book, I also noted your comments about the Arakan Army and other groups. As you know, the Rakhine state issue is currently drawing a lot of attention. What do you think [about the Rakhine state situation; with the involvement of the Arakan Army and Arakan Rohingya Salvation Army]; ARSA was proposing a ceasefire and hinted they want to be in the NCA process? Clearly there is no acceptance by the government and other [non-state armed] groups. What is your opinion?

ARSA will never ever be part of the peace process. Never! There is no legitimacy for them whatsoever. Even as an organization they are not legitimate. They can never be. If you look at similar conflicts in Burma, they are not following the same pattern. The situation in Rakhine State, I think, it is going to get worse next year, but not because of ARSA, primarily probably because of the Arakan Army. They may seek a confrontation with the Chin National Front and Arakan Liberation party. At the moment, the Arakan Army seems to be shifting its operations back to Rakhine State, that's probably not good for Rakhine State.

What do you think of the current situation in Myanmar as military engagement is happening in the north, northeast and western part of the country? Are we going back to history in this conflict cycle?

You are right, to a degree. There are number of issues that should have been finished. With the Arakan Army and their philosophy, I don't think their philosophy is a philosophy of finding Rakhine or Arakan nationalism, I think it is a bit more than that. That's why I think the Arakan Army poses a serious threat next year to the peace process, because it is not going to be the Kachins, or the UWSA [United Wa State Army] that would be a threat to the peace process. It would be a smaller group who do not really have a fundamental outlook on what they want. If you remember, the Arakan Army did not have a political wing when they were formed. They did not set a political agenda until the Kachins told them you have to have a political goal. The Arakan Army for me will be the flashpoint for the peace process next year, because they don't seem to have legitimacy. They weren't created out of legitimacy, and if they try and pose one in Rakhine state, then that will be serious.

The post Arakan Army Will Be Flashpoint For Peace Process: Researcher appeared first on The Irrawaddy.

Ethnic Groups Say Time Has Come To See Detailed Plan For Federal System

Posted: 12 Dec 2017 04:17 AM PST

It is time for the Myanmar government and the military to tell the country's  ethnic groups exactly what type of federal system they can expect to be part of in the future, leaders of the groups said on Tuesday.

The Ethnic Nationalities Affairs Center (ENAC) held a book launch today at Yangon's Green Hill Hotel, where representatives of the ethnic groups discussed the issue with an audience of about 100 people.

The book, which is an updated conference report outlining federal policies grouped under 11 themes, was released on Tuesday by ENAC, a group working to support the peace process between the armed ethnic organizations and the Myanmar government.

The book is intended to provide suggestions to the government and the military to use in building a federal system.

“You cannot just say we will give you a federal system, because that is very general,” said ENAC director Zo Tum Hmung.

If the armed ethnic groups know in detail what type of democracy they will get, the national peace process can move forward, he said.

The book focuses on the sharing of power between the states and the central government under a federal system.

Political power is not enough enough for the state governments. They should have power to collect tax as well,” Zo Tum Hmung said.

The right to collect tax is a prerequisite for any state to develop, he said. But, looking at the ethnic states, they are very poorly developed, as they did not have the right to raise revenue via taxation. At present, only the central government has the power to collect tax.

The ENAC report recommends that states should get 70 percent of tax collected locally, with the other 30 percent going to the central government.

"Some people may think the central government should get more than 30 percent, but there are many alternative areas where the central government could raise taxes such as from property, trading and other activities," said Nai Pon Nya Mon, deputy executive director of ENAC.

ENAC had done workshops in many ethnic states including those with armed groups, and with political parties and civil society organizations (CSOs) in different townships. It found many were in agreement on sharing tax revenues based on a 70/30 split between the states and the central government.

Myanmar has effectively been in a state of civil war for over 60 years, especially in the ethnic states, which has left many of them poor and undeveloped. The book suggested the central government give states such Chin and Rakhine five years to develop without asking for any share of tax revenues.

“Chin state is the poorest. The second is Rakhine,” said Zo Tum Hmung.

"The central government should share more revenue with the Chin as we are poor," he said.

The time has come for the government and the military to listen to the voices of the ethnic people if they wanted to solve the political conflicts in the country, the ethnic leaders said.

"It is a disease,"said Sai Nyunt Lwin, secretary of the Shan National League for Democracy (SNLD), who also spoke at the press conference.

"This disease has spread to the mainland now. It is time to take medicine to treat this ailment (meaning the central government should listen to the ethnic groups)."

The heads of the states and divisions know what they need to do to promote reform in their areas, the ENAC officials said. But, they do not currently have the legal backing to do it. That power rests with the central government.

ENAC project officer Nai Banya Mon gave as an example the case of a copper mine in Letpadaung in Salingyi Township, Sagaing Region.

The central government approved the mine project despite the opposition of local people.

“If the regional government had power, they may know how to solve this problem. But, this project was approved by the central government, so they could do nothing,” he said.

The leaders of the United Nationalities Federal Council (UNFC) and the United Nationalities Alliance (UNA) endorsed the book's 11 sections on how to build a better federal structure.

“If the government accepts our suggestions and discusses them at the upcoming Panglong conference, the peace process can move forward,” said Zo Tum Hmung

There are two paths that lead to reform in the country. One is to fight for rights inside Parliament. The other is to include the rights battle within the peace process. But, the peace process is almost dead in the country, speakers at the book launch said.

Myanmar has now moved into the second generation of reform, with Daw Aung San Suu Kyi's government succeeding the U Thein Sein administration. But, the current government still has not mentioned what type of democracy it will give the ethnic groups.

As for the federal system, there is still no plan ready to be implemented despite two reformist governments taking power.

"We do not see any progress toward a federal system from the two governments," said Zo Tum Hmung.

Mother Tongue Study

Separately, ENAC said all ethnic children should have the right to study in their mother tongue, noting that Mon State had implemented such a program that could serve as a test case.

There are more than 100 ethnic Mon schools run by the Mon National Education Committee and ENAC is working with the MNEC to help implement similar mother tongue programs for other ethnic groups.

The group said the central government needed to provide funds for such studies, including to the MNEC, which faces dire financial difficulties running its own school system.

"All Mon students are citizens of Myanmar. The government should provide a budget for their study," Nai Pon Nya Mon said.

In Chin, there were no Chin ethnic national schools, according to Zo Tum Hmung.

Under the military regime, ethnic people could not study in their mother tongue. But, since the political reforms began, the government has provided some small space for ethnic people to provide services supporting native language studies.

However, many of the ethnic teachers teaching mother tongue studies faced delays in getting paid, and some ethnic leaders complained the government did not do enough to support these programs.

The post Ethnic Groups Say Time Has Come To See Detailed Plan For Federal System appeared first on The Irrawaddy.

Sanctions Unlikely to Affect Gems Industry

Posted: 12 Dec 2017 04:11 AM PST

NAYPYITAW — Possible sanctions on Myanmar's jade and gems are unlikely to have a noticeable impact on the country, said local gems dealers, as Myanmar sells many of its rubies and sapphires to China, India and Thailand.

In response to Myanmar Army counter-insurgency operations in northern Rakhine that saw more than 600,000 Rohingya Muslims flee to Bangladesh since late August, some American luxury jewelry retailers have boycotted gems from Myanmar, posing challenges to Myanmar's gems industry.

"Our country only opened very recently. There is not much difference between being sanctioned or not. Sales did not increase after sanctions were lifted [by the US in September last year]," said vice-chairman U Myint Han of the Myanmar Gems and Jewelry Entrepreneurs Association.

"For example, if we record sales revenue of $583 million, gems only count for $3 million. The rest comes from jade," he added, as Myanmar's jade is mainly exported to neighboring China through border trade.

French luxury gem retailer Cartier recently announced that it would boycott gems from Myanmar.

US company Tiffany & Co stopped buying rubies from Myanmar in 2003 when the US Congress enacted a law that banned the importation of products from Myanmar. The ban included a loophole that allowed dealers to import gems from Myanmar if they were cut and polished somewhere else.

In 2007, Cartier boycotted buying gemstones mined in Myanmar in response to a military crackdown on protestors demanding democracy.

Daw Khin Ohn Myint of Bawma Gems Co in Myanmar's ruby-rich Mogok said Myanmar has no direct market with western buyers and boycotts will have limited impact.

"Jade is mainly bought by China and international buyers buy from China," said Daw Khin Ohn Myint who called the boycotting "not unusual."

Myanmar held its 54th annual gems emporium in August this year, selling 518.824 million euros (690 million USD) worth of 5,197 gem and jade lots under an open tender system.

Director-general U Khin Latt Gyi of the Ministry of Mines said, "Gems dealers want to legally sell their products. So our ministry organizes gems emporiums twice a year, and mostly Chinese buyers come and buy."

He and another assistant director however declined to comment on the impact of the Rakhine issue on Myanmar's jade and gems industry.

Myanmar is currently holding another jade and gems emporium in Naypyitaw that will sell 190 gem lots and 6,685 jade lots. More than 2,000 Chinese buyers, 19 Thai buyers and three buyers from Macao have come to the emporium, while only a Canadian buyer has registered to attend.

Translated from Burmese by Thet Ko Ko.

The post Sanctions Unlikely to Affect Gems Industry appeared first on The Irrawaddy.

Almost a Year After NLD Adviser’s Murder, Key Suspect Still at Large

Posted: 12 Dec 2017 04:07 AM PST

YANGON — As a human rights and constitutional lawyer, U Ko Ni helped others find justice. But for U Ko Ni himself, justice remains elusive.

This coming January will mark the one-year anniversary of his tragic death at Yangon International Airport, where he was shot at close range in broad daylight. But 11 months after his death, Aung Win Khaing, the suspected mastermind of the assassination, is still at large. A statement issued by the President's Office said the former lieutenant colonel is believed to have hired gunman Kyi Lin to shoot U Ko Ni.

The ex-army officer vanished into thin air after the killing. Four other suspects have been on trial for several months, and as of last week 65 of 80 witnesses have testified. The motive for the murder, according to the national police chief, was a "personal grudge;" he said the alleged conspirators were "resentful" of U Ko Ni's political activities.

With the murder trial having dragged on now for nearly a year without the main suspect, longtime friends and colleagues of U Ko Ni expressed their disappointment with the Home Affairs Ministry — which controls the country's police force — for its failure to arrest Aung Win Khaing.

"They are not doing their job properly. It disappoints me to see the main suspect is still at large," said U Kyee Myint, a lawyer who cofounded the Myanmar Lawyers Network five years ago with U Ko Ni.

The police announced in June that they had no new information about Aung Win Khaing and would not be able to arrest him soon despite the fact that he was last seen in Naypyitaw a few days after the killing.

"Why is the Home Affairs Ministry so ineffective?" U Kyee Myint said.

According to Myanmar's controversial 2008 Constitution, the ministry that controls the country's police force is to be run by the military.

U Ko Ni was the legal adviser for Daw Aung San Suu Kyi's National League for Democracy (NLD) party. The 65-year-old lawyer was believed to have conceived of her current position — state counselor — so that she could serve as the country's de facto leader despite being constitutionally barred from the presidency.

The Muslim lawyer was critical of the military-drafted Constitution, which guarantees the military 25 percent of the seats in Parliament and control of the government's three most powerful ministries: defense, border affairs and home affairs. He actively lobbied for the amendment of the charter, one of the NLD's main goals and yet to be realized.

U Ko Ni is believed to have been drafting a new charter at the time of his murder, having decided there was no point trying to amend the 2008 Constitution since any changes to it require more than 75 percent of the votes in Parliament. Many people believe the NLD adviser paid the price for his plans. If true, the Constitution he sought to replace is casting a shadow over his own case.

Robert San Aung, a human rights lawyer and longtime friend of U Ko Ni, said the case was unusual because most of the suspects are former military men. He said that might make the police reluctant to arrest Aung Win Khaing, given that the military runs the Ministry of Home Affairs, which controls the police. (Of the five murder suspects, three are ex-army officers; Aung Win Khaing held the highest rank among them.)

"The police chief doesn't seem to use his full authority," said Robert San Aung, who is representing a taxi driver who was killed during his pursuit for the gunman who shot U Ko Ni.

"It would be easier to bring him [Aung Win Khaing] to court if the police force were not under the ministry," he said. "To make it happen, the only way is to amend the Constitution."

Police Colonel Shwe Thaung, who heads the national police force's Criminal Investigation Department, was not available for comments on Tuesday.

U Nay La, the lawyer representing U Ko Ni's family in the case, told The Irrawaddy that the motive for the assassination could be made clear if Aung Win Khaing were in court.

"We would learn more about who is behind the case," he said.

U Nay La said police were doing a poor job of investigating the murder but declined to elaborate because the case was ongoing.

"All we want is that action be taken against those who are guilty according to the law. But we are more interested in why the assassination happened," he said.

The Irrawaddy's Tin Htet Paing contributed reporting.

The post Almost a Year After NLD Adviser's Murder, Key Suspect Still at Large appeared first on The Irrawaddy.

Yangon Restricts Drones for Security Reasons

Posted: 12 Dec 2017 04:03 AM PST

YANGON — Yangon Region's general administration department has banned drone flying for security reasons in areas in 16 townships where local and international aircraft operate.

The recent order was issued after drones flying in the approach path to the runway at Yangon International Airport disturbed airplane traffic, the order stated.

With bird strikes reportedly forcing emergency aircraft landings in past years, the order added that drone collisions could result in dangerous situations despite airport security measures.

The drone/unmanned aircraft vehicle (UAV) prohibited areas include North Okkalapa, Dagon Myothit (North), Dagon Myothit (East), Insein, Shwepyithar, Hlaing Tharyar, Mayangone, Hlaing, Kamayut, Kyimyindaing, Sanchaung, Bahan, Seikgyikanaungto, Mingaladon, Hlegu and Htantabin townships.

Violators of the order would face fines or one month to six months imprisonment or both under Article 188 of Myanmar's Penal Code.

"It is acceptable as the safety risk is high. But it will be better to have legislation on using drones [instead of issuing restrictions in certain areas]," said Ko Nyana (aka Phoe Lone), the owner of MAVS aerial drone shooting services, rental and sales center.

He said that if drone legislation were prescribed, it would benefit the state, as drones are being used for government projects, mapping and surveying more so than for private use.

So far, drones fly in unrestricted areas with the permission of local authorities and police after registering with the Ministry of Transport's Department of Civil Aviation (DCA).

The country's landmark Shwedagon Pagoda also banned UAVs from flying over the famed pagoda or its grounds.

Two foreign journalists from Turkish state broadcaster TRT World and two Myanmar citizens were detained by police for attempting to fly a drone near Myanmar's Parliament in Naypyitaw on Oct. 27 amid tension raised between Myanmar and Turkey over the Rohingya crisis.

The four were sentenced to two months imprisonment on Nov. 10 under the country's Aircraft Act and are still facing trial under the 2012 Export and Import Law for illegally bringing the drone into the country and Section 13(1) of the Immigration Act.

The post Yangon Restricts Drones for Security Reasons appeared first on The Irrawaddy.

Contentious Telecoms Law Still Used to Stifle Dissent Despite Amendments: FEM

Posted: 12 Dec 2017 01:48 AM PST

YANGON — The controversial Article 66(d) of Myanmar's Telecommunications Law is still widely used by authorities to stifle dissent despite a recent amendment, according to a report by Free Expression Myanmar (FEM), a non-governmental human rights defender and promoter.

FEM released its report titled '66 (d): No real change' at Pansuriya Art Gallery in Yangon on Monday, claiming that the government’s amendment of the article in August 2017 has not brought any significant change.

"This article should have been scrapped, but it was only amended. This report highlights with facts and figures that this article is still used [by authorities] as a tool even after its amendment, as well as looks at the situation of freedom of expression in Myanmar," Maung Saungkha, a poet who has been campaigning for the repeal of the law, told The Irrawaddy.

Over the past two years, Article 66(d) has been used by those in positions of power to punish those who try to hold them accountable, and the government amendment of the article has had no perceptible impact on this, said FEM.

The report was prepared by FEM and its partners Myanmar ICT for Development (MIDO) and a research group on Telecommunications Law. It analyzes the complaints filed under Article 66(d) before and after amending the article.

"We've said clearly that Article 66(d) is unnecessary because there is already Section 500 of the Penal Code. The defamation charge in the telecommunications is too broadly defined. Unless and until Article 66(d) is scrapped, any changes to the law will not suffice," said Maung Saungkha.

Nine new cases were filed under Article 66(d) even after changes were introduced to the law August, according to the report, which covers two years' time from November 2015 to November 2017.

According to the report, there were a total of 106 cases—11 filed in the time of the Union Solidarity and Development (USDP) government and 95 under the National League for Democracy (NLD) government.

The report said that 51 percent of complainants were closely related to authorities such as government officials, political parties and the military, and 23 percent of complainants directly represent the government as government officials, including ward administrators and police officers.

"Article 66(d) was not amended as we wanted, in a way that complies with international norms. I would call it a so-called amendment," said Daw Zarchi Oo, a member of Pen Myanmar.

In early 2017, 22 civil society organizations teamed up in their advocacy efforts for the reform of the Telecommunications Law and the termination of Article 66(d).

The amendment approved by Parliament in August requires prosecutions under the law to be conducted directly by the "defamed" individual, rather than by a third party, unless that party has been granted legal power by the individual. It also allows for bail to be granted to the defendant.

The maximum prison sentence was also cut to two years from three. However, the law's most contentious clause, which broadly prohibits the use of the telecommunications network to "extort, defame, disturb or intimidate" remains in place.

The FEM Myanmar report said that 93 percent of complaints were about defamation, and if defamation were precisely defined in Article 66(d), at least two-thirds of the complaints should have been rejected.

The report also called for scrapping the article and decriminalizing defamation in Myanmar's Penal Code.

FEM was established in May 2017 by a group of human rights defenders leading a new civil society coalition to challenge the repressive Telecommunications Law and the notorious Article 66(d).

Translated from Burmese by Thet Ko Ko.

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Myanmar to Delay Law That Would Have Allowed More Foreign Investment

Posted: 11 Dec 2017 10:06 PM PST

YANGON — Myanmar will delay a long-awaited reform that would open the door further to foreign investment, two officials told Reuters, a move likely to disappoint cash-starved businesses amid growing doubts over the management of the economy by the country's leader, Daw Aung San Suu Kyi.

The postponement of the corporate reform, which would have allowed foreign companies to take up to a 35 percent stake in Myanmar companies, will likely deal a fresh blow to investor confidence in Aung San Suu Kyi's administration.

Economic reform is a key goal for her to complete Myanmar's democratic transition after decades of isolation under military rule.

The delay underscores the daunting challenge facing Aung San Suu Kyi, whose promise of a reformist government that would attract foreign investment is under threat.

Some aid to Myanmar is already being withheld and investors are concerned that the sanctions that long hobbled the country's economy will be reinstated over its treatment of its Rohingya minority.

A Myanmar companies law, which could bring much-needed foreign capital to the country after decades of mismanagement by the former military junta, was approved last week by President Htin Kyaw without a commencement date specified.

Aung Naing Oo, head of Myanmar's Directorate of Investment and Company Administration (DICA), told Reuters the authorities may not be ready to implement the new rules until as late as August 2018, after bylaws were prepared and a company registry that he said was vital to enforcement was completed.

"We really want to implement the law as soon as possible but there are many things for us to do," he said, declining to elaborate what bylaws were needed. He said the government would make sure implementation would be no later than Aug. 1. "We have to make sure the reform is on the right track."

Myo Min, director of DICA, said the authorities needed up to eight months to "work on the guidance and operating manual" for the country's first modern online registry, an initiative driven by the Asian Development Bank to electronically revamp the country's company registry to boost transparency.

The law includes a first set of modern corporate governance regulations, in some parts replacing rules made over a century ago, to bring the country's business regulatory framework closer to international standards.

At issue is a clause that allows foreigners to take up to a 35 percent share in local companies, which would give local businesses access to a larger capital pool and open up the door for mergers and acquisitions in sectors that are in urgent need of an injection of cash from banking to property.

The delay of the much-anticipated reform comes as Suu Kyi faces criticism that she has neglected economic reforms. Growth in both foreign investment and gross domestic product have slowed since her National League for Democracy took office last year in one of the region's poorest countries.

Htay Aung, president of the property-to-trading conglomerate Sakura Trade Center, said putting off implementation of the law "was bad for business as it will bring delays and extra costs, which result in losses."

The company is seeking $100 million in overseas financing for a condominium development in Myanmar's commercial hub, Yangon. "Foreign investment will be postponed and local businessmen will be disappointed."

'Missed Opportunity'

Investors have been waiting for the corporate reform, which was initiated by the former military-backed government in 2014. It establishes guidelines on how a company is run and governed, removing outdated rules on share transfers and offering greater protection to shareholders.

But Chris Hughes, a lawyer with Berwin Leighton Paisner in Yangon who was commissioned to draft the rules, said it was a "missed opportunity" for Aung San Suu Kyi's administration.

"I can't see a compelling economic reason or policy behind the delay. It seems more driven by technology or administrative factors."

William Greenlee, managing director at law firm DFDL in Yangon, said the business community would struggle with the delay.

"International investors are watching and it's wins like this that create a buzz and can materialize into a profound and sustained increase in foreign investment," he said. "The euphoria will quickly turn to disappointment if it's not implemented quickly."

Aung Naing Oo of DICA said there would be no negative impact on investment. "Investors always need to take some time before they invest," he said. "So this actually is the time for investors to make preparation to invest in Myanmar."

The Asian Development Bank, which gives financial and technical assistance to Myanmar, said "it is ultimately the government's decision when the law comes into force" and declined to comment further.

The post Myanmar to Delay Law That Would Have Allowed More Foreign Investment appeared first on The Irrawaddy.

Ten Things to Do in Yangon This Week

Posted: 11 Dec 2017 09:33 PM PST

Mar Mar Aye | Dec. 13

Myanmar's legendary singer Mar Mar Aye will perform as she celebrates her 75th birthday.

Dec. 13, 7 pm. National Theater. Tickets 5,000 kyats to 30,000 kyats at NoBody (Yankin Center, Junction Square) and call center 1876 and 09-420245065.

Reason to be Idiots | Dec. 16

Two famous rock bands, Reason and Idiots will be rocking together at Kandawgyi Hmaw Sin Kyun.

Dec. 16, 6 pm. Kandawgyi Hmaw Sin Kyun. Tickets between 9,000 to 20,000 kyats at 09-977009157, 09-455573442.

Moh Moh: Simply Acoustic | Dec. 16

Soulful singer Moh Moh will perform solo as well as duets with Myo Kyawt Myaing, Wai La and Phyo Pyae Sone.

Dec. 16. 7:30 pm. Mercedes Showroom near 8th Mile, Pyay Road. Limited tickets between $50 and $150 at 09-32105660.

Challenges for Business Enterprises in 2018 | Dec. 17

Myanmar's renowned economists will talk about the challenges facing business enterprises in 2018 in a panel discussion. Registration here.

Dec. 17, 9 am to 12 pm, UMFCCI Building, No. 29, Min Ye Kyaw Zwar Road, Lanmadaw Tsp. Free admission.

Book Sale | Dec. 14-17

A book sale will be held to commemorate the 97th anniversary of Yangon University.

Dec. 14-17, 9 am to 5 pm. Yangon University.

Property and Household Products Sale | Dec. 15-17

Property and household items will be sold at special discounts at this event.

Dec. 15-17, 9 am to 5 pm. Minder Groung, U Wisara Road.

Song to the Moon | Dec. 15

This concert of all Czech classical music features works by well-known Czech composers.

Dec. 15, 7 pm. Sule Shangri-La Hotel. Free Admission. 

Trees in the Heart | Dec. 1-28

This art exhibition features tress from the perspective of Nilar Tun.

Dec. 1-28. Eternal Art Gallery. Yuzana Garden Housing.

Landscapes | Dec. 16-20

Ba Htay Kyi features dozens of landscape paintings at this solo exhibition.

Dec. 16-20. Studio Square Art Gallery. Maha Bandoola Park Street (Upper Block).

In My Memorial | Dec. 15-19

This art exhibition is about Min Zaw Aung's surrealist paintings.

Dec. 15-19. Bo Aung Kyaw Art Gallery, Bo Aung Kyaw Street.

The post Ten Things to Do in Yangon This Week appeared first on The Irrawaddy.
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