AllSBNews

Sunday, June 8, 2014

Democratic Voice of Burma

US aims to boost investment in Burma
Burma rejects Bangladeshi demands at border talks
Border demarcations leave Shan farmers on Chinese soil
Burmese beauty queen arrives home after victory in Seoul

Posted: 08 Jun 2014 01:05 AM PDT

Spending two days in Burma as a part of a commercial diplomacy tour in Southeast Asia, US Commerce Secretary Penny Pritzker inaugurated a commercial service office at the US embassy in Rangoon on Friday.

Commercial service offices, as explained to DVB by Andrew Leahy of the US embassy, serve as "an advocate and liaison for US businesses attempting to invest in a particular country," and work "directly with US businesses interested in learning more about a country or navigating the country's economic environment."

Pritzker's regional tour was touted by the US Department of Commerce as one intended to elaborate on the economic dimension of President Obama's pivot to Asia, with time spent in Burma intended to encourage the "building of soft and hard infrastructure necessary to support the growth of emerging partners."

Her three-legged tour also included the Philippines and Vietnam.

Burma's emergence as a US trade partner is distinguished most clearly by a jump in US exports to the once pariah state, which, according to the US embassy, ran from US$9.8 million in 2010 to $145 million in 2013. On top of this, as of 30 April 2014, US companies have plans to invest $243.6 million in the Burmese economy.

While that figure of American foreign direct investment (FDI) in Burma is dwarfed in comparison to the latest available US FDI figures for the Philippines, $4.6 billion, and Vietnam, $1.2 billion, the reaction by US firms to the 2012 removal of the majority of US economic sanctions has been swift.

On Thursday, Pritzker met Burmese President Thein Sein in Naypyidaw, as well as Vice President Nyan Tun and Shwe Mann, speaker of the Lower House.

To each she reportedly stressed the need for the Burmese government to "build on the progress that has been made by implementing measures that increase inclusive economic development, promote government transparency and accountability, and safeguard labour rights and human rights."

That progress was evaluated last month and resulted in President Obama renewing the US classification of the situation in Burma as a "National Emergency." With that motion, the limited economic sanctions that bind US businesses investing in Burma were renewed. Those sanctions, according to US Ambassador to Burma Derek Mitchell, primarily affect "individuals and entities that materially benefited from their close ties to the former regime and who are still impeding reform in this country, the so-called 'specially designated nationals'."

One such blacklisted entity, military-owned Union of Myanmar Economic Holdings (UMEH), is set to neighbour American company Ball Corporation at Thilawa Special Economic Zone (SEZ), currently under construction 20 kilometers south of Rangoon.

Ball Corporation will benefit from minimal government red tape and relaxed labour laws that characterise the SEZ, as will UMEH, a company already exempt from commercial and profit taxes. UMEH will continue to develop infrastructure plots at the zone, which includes heavy manufacturing and port facilities.

On Friday, representatives from Ball Company, as well as APR energy, who are constructing a large-scale thermal power plant in Burma, joined Priztler as she affirmed, "When our businesses make investments, they bring with them the highest standards, including a commitment to corporate and social responsibility."

That comment came a day after Washington-based lobby group US Campaign for Burma (USCB) released what it called a "report card", grading the six US companies that have each invested over $500,000 in Burma. Those companies were adjudged on levels of transparency, procedural behaviour, risk mitigation and social responsibility. USCB was only able to classify one of the companies, Coca-Cola, as a "responsible" investor, whereas two firms were designated as "questionable" and three as "irresponsible".

One such "irresponsible" US company, Capital Group Companies Inc, was singled out for their relationship with Burmese concern Yoma Strategic Holdings. USCB links Yoma to "human rights abuses, including environmental destruction, forced displacement, land confiscation, political detentions, and labor abuses." USCB also noted that Yoma was reviewed by the US Treasury for potential inclusion on their blacklist, for links to the previous military regime.

Yet Yoma have never featured on the list, and their CEO, Serge Pun is frequently referred to in the international media as "Mr Clean". That title comes despite his flagship enterprise Yoma Bank not appearing on the list of 100 top Burmese corporate taxpayers list for 2011-12 nor the top 500 list for 2012-13.

That Serge Pun has been able to run a multitude of successful businesses in Burma under successive military regimes and the current quasi-civilian government has raised the suspicions of lobby groups such as USCB. Last month, USCB called for the International Finance Corporation to pull out of a development deal with Yoma.

The US embassy included Yoma in 2008 as a player in the Burmese government "system of economic patronage" which insures that "certain companies, often owned by regime cronies, receive key contracts and profitable business opportunities in exchange for their support for the regime."

Yet Yoma, nor any company that Pun has been involved in, have ever been hit with sanctions, leaving Pun with a reputation as a professional and esteemed business leader in a national business environment which clearly fosters corruption.

Last week, Andrew Rickards, CEO of Yoma Strategic Holdings, told DVB that USCB's allegations are “without substance” and that Yoma, “rejects the validity of these [USCB] calls."

"If anything," Rickards asserted, "Mr Pun should be congratulated.”

While pessimistic about the current performance of US private sector investment in Burma, USCB maintains that "Responsible US investment has the potential to further the US policy goal to support 'the establishment of a peaceful, prosperous, and democratic state that respects human rights and the rule of law.'"

The rights watchdog will hope to be able to grade garment manufacturers Gap Inc with a pass mark on their next report. The fashion brand has recently announced the intention to open two factories in Burma and in doing so has indicated a commitment to corporate social responsibility.

Burma rejects Bangladeshi demands at border talks

Posted: 07 Jun 2014 11:03 PM PDT

Burma and Bangladesh will reschedule talks on the current border crisis after the Burmese delegation rejected proposals at a flag meeting in Maungdaw last week.

Bangladeshi media quoted Maj-Gen Aziz Ahmed, the director-general of Border Guard Bangladesh (BGB), saying that no clear decision was made at the border flag meeting and so talks will be scheduled for Naypyidaw in the near future.

Aziz said that Burma refused a demand to withdraw its troops from positions close to the common border, and also rejected a Bangladeshi proposal to conduct joint patrols along the border.

The flag meeting was held after a recent spate of hostilities between the border guard forces of both countries which resulted in one Bangladeshi corporal shot and killed on 28 May.

During the flag meeting, Burma's delegation handed back the gun and equipment of the dead Bangladeshi soldier. The body of Corp. Nayek Mizanur Rahman was handed over on 2 June.

Both countries had previously agreed not to position troops within five kilometres of the land border. Bangladesh accuses Burmese border guard units of breaking that agreement. Burma, for its part, maintains that Rohingya militants are active in the area surrounding boundary posts 50 to 52 and that they must protect their sovereignty.

The 23-member Bangladeshi delegation was led by Cox’s Bazar Sector Commander Khandakar Farid Hasan while the Burmese team was headed by border guard police commander Brig-Gen Tin Ko Ko and the Maungdaw immigration department director.

Tin Ko Ko is reported saying at the meeting that Burmese security forces shot at Corp. Mizanur as they believed him to be a member of the Rohingya Solidarity Organization (RSO). He noted that the insurgents frequently wear uniforms similar to the BGB.

The Bangladeshi commander reportedly rejected the allegation that the RSO maintains bases on Bangladeshi soil.

Border demarcations leave Shan farmers on Chinese soil

Posted: 07 Jun 2014 09:53 PM PDT

Farmers in villages around Namkham in northern Shan State say they plan to send a letter of petition to Burma's President Thein Sein to voice their concern that new border demarcations will leave them on the Chinese side.

Temporary border posts have been erected about half a mile from the farming hamlets of Sae Khon, Kongthar and Ban Nong in Namhkam Township, following talks between Burmese and Chinese officials last week.

Burma appears willing to cede the land – some 200 acres south of the Shweli River – to China. However the farmers say they want to remain in Burma's Shan State, having worked on these lands for several generations, according to Sai Sai Wang, the local chairman of the Shan Nationalities Democratic Party (also known as the White Tiger Party).

The farmers plan to send a letter of petition to the president, insisting they want Burma to protect these lands which they inherited, he said.

"Not only the White Tiger Party, but also the Tiger Head party are joining together to help the villagers," Sai Sai Wang told DVB on Friday. "These lands belong to Shan State in Burma and we reject any agreement that marks them as part of China.

He said the farmers' petition will be sent not only to Thein Sein, but to the chief minister of Shan State, the respective district and township administrators, and other related parties.

The White Tiger Party representative said that the Burmese authorities had not informed the local people what was happening, but had only issued warnings to farmers not to try to pull out or change the border markers.

Villagers allegedly tore out and destroyed temporary border markers that were installed on 27- 31 May.

MP Sai Pho Aung from nearby Muse constituency said he is collecting information and will raise the issue in parliament.

Burmese state media on 5 June said that the government is not reassessing the border but implementing military demarcations agreed in 1960 and 1995. The report said that authorities will educate and advise the farmers who are growing crops in the areas between Namhkam and the Shweli River marked for transfer.

Burmese beauty queen arrives home after victory in Seoul

Posted: 07 Jun 2014 08:05 PM PDT

May Myat Noe arrived home in Burma on Thursday night following after her victory in the Miss Asia Pacific competition in South Korea last week.

Despite the late hour, the 18-year-old Burmese beauty was mobbed at Rangoon International Airport by fans, media, family members, friends, and representatives of the fashion and modeling businesses.

May Myat Noe became the first Burmese to win an international beauty pageant at this level; others have won contests by Internet voting, but none have won in a competition involving international judges.

In an interview with DVB, May Myat Noe said she will continue her education and volunteer as a social worker while at the same time pursuing her career as a model or actress.

Some excerpts of May Myat Noe's interview with DVB from Seoul:

Q: How do you feel about winning the title?

A: Very proud and happy. I'm proud that I've achieved something for my country.

Q: How did you prepare for the contest?

A: I've had several mentors who supported me – it was also thanks to their efforts, as well as my own, that I won the title.

Q: You had to compete against contestants from 40 other countries. How confident were you about winning?

A: I am aware that I am not completely perfect, but I gave it 100 percent throughout the competition. In the end, I believe that I deserved to win.

Q: What are your plans for the future after winning the Miss Asia Pacific World Super Talent 2014 pageant?

A: I have some ideas, but I will have to wait until I get back to Burma.

Q: We learnt that you were also awarded membership by the Korean Film Actors Association?

A: Yes. I just got it now. I will take a photo of the award and post it on Facebook.

Q: Are you planning to do any charity or philanthropy work?

A: Yes. I am planning to help out with a charity education programme.

Q: Any message for your fans in Burma?

A: Yes. I thank you all for your support which empowered me with the confidence to win this contest.

National News

Cooperatives loan program criticised by hluttaw members

Posted: 05 Jun 2014 11:28 PM PDT

The Ministry of Cooperatives has rejected accusations that members of parties other than the Union Solidarity and Development Party are being refused microfinance loans.

Police nab men for faking accidents

Posted: 05 Jun 2014 10:47 PM PDT

Police on June 3 arrested five suspects they say faked car accidents in order to solicit money from unsuspecting drivers.

Saturday, June 7, 2014

Democratic Voice of Burma

Thais crack down on illegal Burmese migrants
Perceiving the peace in Karen State
Rangoon monastery kicks off anti-Ooredoo tour

Thais crack down on illegal Burmese migrants

Posted: 07 Jun 2014 01:09 AM PDT

Thai authorities apprehended and deported 163 undocumented Burmese migrants in a raid in Mae Sot on Tuesday. Conducted by a joint task force of Thai army, government authorities, immigration officials and police, the round-up took place at Ban Sung Kwe, an area densely populated by Burmese migrants in the western Thai town.

The migrants – 49 men, 59 women and 55 children – were loaded into trucks and transported across the border to Myawaddy in Karen State.

Two days later, on 5 June, another raid, this time in the southern Thai town of Ranong, resulted in the capture of 136 Burmese migrants who had recently been smuggled into Thailand on foot, according to Ranong provincial governor Cherdsak Jampathes said at a press conference that same day.

A joint force of Thai military and police had caught them in a rubber plantation after a tip-off, he said.

The detainees were listed as 103 men, 23 women and 10 children. The migrants reportedly said they entered Thailand from Kawthaung on the Burmese side of the border where smugglers or traffickers had brought them after a three-hour trek through the jungle in the middle of the night.

After questioning, several illegal migrants reportedly told Thai authorities that they had planned to go to Mahachai near Bangkok, where thousands of Burmese get jobs on fishing boats or work in fishery processing factories.

Others had paid to be transported to Songkhla in southern Thailand, a town with many rubber plantations also known for reemploying Burmese migrants. Others were headed for Malaysia, the governor said.

The detainees told Thai authorities they had paid 6,000 baht for the attempted trip to Mahachai; 10,000 baht for Songkhla; and 20,000 baht to get to Malaysia.

All brokers and migrants will be charged with immigration offences, Thai newspaper Khaosod quoted officials saying.

Ranong Governor Cherdsak alluded loosely to the 22 May military coup in Thailand, saying it was important for the Thai armed forces to work closely with other offices during this time of unrest in the country.

Perceiving the peace in Karen State

Posted: 06 Jun 2014 11:24 PM PDT

For as long as long as it has existed, Htee Baw Day – an isolated hamlet perched on a mountaintop in eastern Karen State – has known little security.

A steep, rooty path, bisected by streams and fallen logs, provides the villagers' only access to the outside world, and the closest settlement is at least two hours' walk away. The Moei River – marking the frontier between Thailand and Burma – takes four hours to reach over treacherous, vertical terrain.

For the families that live in the village, their relative proximity to the border has been fortuitous. "We stay in this area because it is under KNU [Karen National Union] control, and if the army attacks, we can go to Thailand," says Paw Moo Poe, a village elder.

Htee Baw Day has been razed to the ground twice, he says – once by the Burmese army in 1999, and ten years later by the Democratic Karen Buddhist Army or DKBA, most of which has now transformed into a government-sponsored "border guard force" militia. After the village was destroyed last time, most of the 22 families who lived there fled over the border to Thailand. Just seven have returned, and their crops now grow around the charred remains of abandoned homes.

Over six decades of civil war, tens of thousands of civilians in eastern Burma have become well-acquainted with this kind of insecurity, and have lived in constant fear of attack by the Burmese army and its allied paramilitaries. Htee Baw Day is located in what is known as a "black zone," or insurgent-controlled "free-fire" area, where government troops have impunity to abuse civilians.

If all goes to well, however, the residents of Htee Baw Day – and hundreds of villages like it around Karen State – will be able to breathe easier soon. Political realities on the ground began to change in 2012 when the KNU and its allies entered into a ceasefire with the government. Negotiations leading towards a comprehensive peace plan are underway, albeit cautiously.

Previous efforts at securing peace in Karen State, throughout the 1990s and early 2000s, ended in failure. And as far as Hpa Moo Poe is concerned, there is no reason to believe anything will be different this time. "We have experienced this before: the two sides talk, but the talks always break down. Again and again," he said.

Saw Ngwe, 62, originally came to Htee Baw Day in 1995, after the Karen National Union (KNU) was forced to cede much of its territory to the government after the fall of its provisional capital, Manerplaw. The village's proximity to Thailand attracted his family to the area, but the fighting soon followed them.

"Before 1999, we could stay here easily. There was not so much fighting here – it was further inside [Karen State]," he said. "We were protected because we were near the border. But after 1999, the government had a plan to clear out all the KNU, and we were forced out."

He and his family returned from Thailand most recently last year, and have started to farm their land once again. "Now it is a little bit better, so we feel confident to live here," he said.

But the families who have chosen to return feel as though they are living on borrowed time. "I don't believe in the peace process, because we have had to move many times … we always come back to the same place, because even though we have to leave, this is our home," said Naw Moo Bu, whose family has spent three stints living on the Thai side of the border. "Before we left, we had buffaloes and goats, but we lost everything. We aren't going to buy new ones, because we can't be sure there is going to be peace," she said.

Denied the ability to farm in Thailand, the families that have returned have done so at least partially out of desperation. "We are not sure about our safety. We came back to plant crops and grow our food," said Paw Moo Poe. "If we stay on the other side, we cannot grow crops, so it is best for us to stay here."

In some respects, life in Htee Baw Day has improved markedly over the past two years. Residents report they feel much safer when travelling, as they now have little reason to be afraid of run-ins with government-aligned forces. "Things have changed. In the past, the enemy came here all the time. But now, they never come," said Paw Bu, a farmer who lives in the village.

Despite recent efforts to remove them, landmines – thousands of which litter the Karen Hills – still menace Htee Baw Day. "After the ceasefire was signed, the KNU soldiers came to clear the landmines. But they didn't clear everywhere: just the places where we usually walk, and where we grow our crops," said Paw Bu. "There are still landmines around here."

The government has offered them resettlement in state-controlled areas, but Paw Moo Poe is wary of their intentions. "The Burmese government said we could move to a new village, and they would provide us with clean water and sanitation equipment. But we don't trust them," he said.

Htee Baw Day has no electrical power, running water or access to social services provided by the government. The village has no school, and many of its children study in Thailand. "The government wants to build a village near the road, but we don't want to live there … If the ceasefire breaks, we will not be able to leave quickly because we will already be in their territory," Paw Moo Poe said. "By staying here, we will be safer."

Tenuous steps towards peace haven't undone 60 years of mistrust; violent breaches of the ceasefire still occur. Last month, the Karen Human Rights Group (KHRG) released a report documenting abuses across the state, which noted that "some forms of human rights abuse … remain of serious concern, [but] others have almost disappeared. At the same time, new forms of abuse and local concerns are emerging in the evolving security environment."

The report details a litany of violations against civilians since 2012, including the shelling of villages and extrajudicial killings, and notes that as the peace process solidifies, displacement related to development may serve as a new flashpoint for civilian grievance.

"Before we left, we had buffaloes and goats, but we lost everything. We aren't going to buy new ones, because we can't be sure there is going to be peace.”

"I think scepticism and concern regarding the peace process is very understandable, given Karen communities' long history of suffering and abuse during the armed conflict," said Ashley South, a consultant with the Myanmar Peace Support Initiative, a Norwegian-backed programme that attempts to facilitate cooperation between the government and ethnic armed groups. "My personal view is that the peace process is problematic in a number of ways, but still represents the best opportunity to address the political, social and economic causes underlying decades of armed conflict in Myanmar."

It is difficult to deny that the negotiations between KNU and the government since 2012 have been the most successful in decades, and they have already brought about signs of progress that would have been unlikely in the recent past. Both Naypyidaw and Burma's myriad ethnic armed groups want to see a nationwide ceasefire pushed through by the end of the year, even if the two sides fundamentally disagree on what it should look like.

This past week, the KNU's central executive committee travelled to the capital, where it met with Burma's top civilian leaders and the commander-in-chief of the armed forces, Min Aung Hlaing, the most recent in a long line of consultations between the two sides. But Naypyidaw's newfound closeness with the KNU may just be a function of divide-and-conquer tactics to undermine unity between Burma's ethnic armed groups.

If it is able to secure peace in the south, some fear that the government forces will intensify offensives in the north, targeting the Kachin Independence Army and its allies, and – perhaps – ignite armed conflict with the notoriously reclusive and well-equipped United Wa State Army, with which the government has had a ceasefire arrangement since the 1990s.

Closer to home, the KHRG report claims that the military has increased its footprint in Karen areas since 2012, fortifying existing bases across the region while continuing to rotate troops to the front lines, despite ongoing talks.

"In my opinion, the single development which could do the most to build trust and confidence in the peace process would be the withdrawal of Myanmar Army troops from some frontline positions," said South. "My understanding is that the KNU have secured an agreement in principle to this effect, during recent meetings with the commander-in-chief and president in Naypyidaw."

The Norwegian-backed peace support initiative has come under intense criticism since its inception in 2012. Its detractors claim its activities make the peace process appear to be more durable than it really is, and help justify the diversion of resources away from refugee camps on the Thai side of the border, which their residents – as well as residents of villages close to the border, like Htee Baw Day – still feel provide a necessary safe haven.

But through its efforts, the KNU's relief and development arm – the Committee for Internally Displaced Karen People – now receives funding from international donors, and the KNU agencies that provide social services across vast swathes of Karen State can now do so openly.

"It’s very important that MPSI and other initiatives make clear that foreigners cannot guarantee peace," South said. "However, the ability to work in previously inaccessible, conflict-affected areas is a demonstration of the realities of the peace process."

The high politics transpiring in Naypyidaw or Oslo mean little to those on the ground in places like Htee Baw Day, whose desire to escape insecurity speaks to fundamental needs that are as yet unfulfilled. "If we can be sure there will be peace, we will have a big feast – pigs, buffaloes! But of course we are not sure, so not yet," joked Naw Moo Bu.

The residents of Htee Baw Day and thousands of similar villages throughout Burma’s ethnic minority regions can do little but ride out the ebb and flow of the peace process as developments occur. "I'm just a villager – I depend on my leaders," said Saw Nge. "If the leaders say that it is peaceful now and that it is stable, I will believe them."

Rangoon monastery kicks off anti-Ooredoo tour

Posted: 06 Jun 2014 09:21 PM PDT

A Rangoon monastery is organising an anti-Ooredoo event on Saturday in order to urge the public to boycott the Qatar-based company and its products in a bid to protect the Buddhist religion.

Magwe Pariyatti Monastery in Rangoon's North Dagon Township has spearheaded a campaign against Ooredoo since it was awarded one of two telecommunication licenses in 2013 to operate in the mobile-starved country. With an investment of US$15 billion, Ooredoo has promised to roll out a network that would reach 90 percent of Burma's population in two years.

But Buddhist monk Parmouhka said that his monastery plans to travel across the country to inform people not to purchase the company's products, starting with Saturday's event.

"We are doing this because Ooredoo is owned by Muslims and they are going to use their profits from their business in Burma to build mosques in this country and fund Muslims to marry our women," Parmouhka said. "They are a company that will destroy our race and it poses a threat to our religion."

Thiri Kyar Nyo, public relations manager for Ooredoo, said in an email that the company's products and services will win over the public once it has hit the market. Additionally, Ooredoo employs more than 700 locals, which makes up almost 80 percent of the company, and Thiri Kyar Nyo said it plans for its Burmese staff to be at 99 percent in five years.

"I think any suspicion about our company will quickly dissipate once people start to see more of our brand and the positive effects that we will bring to the people of Myanmar [Burma]," Thiri Kyar Nyo said, adding: "I myself [am] a Myanmar and a Buddhist, I'm very proud to represent my organization."

Burma, a predominantly Buddhist country, has faced communal violence in the past over religion. Aung Naing Oo, director-general of Myanmar Investment Commission, said that such anti-Muslim campaigns against foreign investors will only hurt the country if it gains traction.

"It would not be a good sign for the environment if these campaigns become widespread and if they start targeting more and more investors," Aung Naing Oo said, adding that boycott campaigns don't typically persist in other countries. "So I assume it won't last long in Burma either."

Sithu Aung Myint, a well-known columnist who has criticized the anti-Ooredoo campaign, said the campaigners need "a valid reason" for opposing Ooredoo, instead of one based on bigotry.

"It would be hard for the government to step in because it is the consumer's right to decide not to use service or buy products from a certain company," Sithu Aung Myint said. "But if they, for example, escalate on using hate speech in their campaign, then the government can interfere."

The Irrawaddy Magazine

An Inside Look at Letpadaung
A Conversation With the Swedish Ambassador to Burma
The Irrawaddy Business Roundup (June 7, 2014)
Reforms for Whom?

An Inside Look at Letpadaung

Posted: 06 Jun 2014 06:00 PM PDT

The view looking down into the Sabe copper mining site near Monywa in Sagaing Division. (Photo: JPaing / The Irrawaddy)

LETPADAUNG, Sagaing Division — The Letpadaung copper mine project near Monywa in Sagaing Division has sparked public outcry in recent years, especially after a government crackdown on protesters in 2012 injured than 70 people, including several monks.

Local residents and human rights groups have demanded its closure, citing environmental destruction, forced relocation and illegal land confiscation as reasons to scupper the project. Almost two years after the crackdown, an agreement between the mine's operators and those opposing the project has yet to be reached.

The mine is a joint venture between China's Wanbao mining company and the Union of Myanmar Economic Holdings Ltd (UMEHL), a Burmese military-owned conglomerate.

The Letpadaung venture is part of the companies' wider Monywa copper extraction efforts, which target four copper deposits at the mountains of Sabe, Kyeesin and Letpadaung.

The Letpadaung venture is a 30-year project that is likely to produce 100,000 tons of copper annually and as such is the most promising of the deposits in the area, but at present its development is only 40 percent completed.

Still, its operators say there is no turning back now.

"We have invested up to US$1 billion in this project," the project manager told The Irrawaddy during a guided tour around the Letpadaung site last month.

"So the project can't be stopped and it has to continue."

The post An Inside Look at Letpadaung appeared first on The Irrawaddy Magazine.

A Conversation With the Swedish Ambassador to Burma

Posted: 06 Jun 2014 05:45 PM PDT

Swedish Ambassador to Burma Klas Molin is a resident in Bangkok but visited Rangoon on Friday for the opening of a new embassy office. (Photo: Kyaw Hsu Mon / The Irrawaddy)

RANGOON — Sweden opened its first embassy office in Burma on Friday. The two countries have had relations since 1955, but Swedish officials previously worked with their Burmese counterparts while based at an embassy over the border in Thailand. At the opening of the new Swedish embassy office in Rangoon's Mayangon Township, The Irrawaddy spoke with Swedish Ambassador to Burma Klas Molin about business relations, foreign investment and press freedom.

Question: Are you the first ambassador to Burma in over half a century?

Answer: Good question. We have had relations since 1955, but no-one [Swedish ambassador] has been resident, living in the country. We've been covering this country from outside—first from India, and for many years from Thailand. In that sense, there is no change. I am an ambassador and I am a resident in Bangkok, and I am accredited to Myanmar [Burma] from Bangkok. What is new, and what is interesting, especially today, is that we're opening an embassy office here in Yangon [Rangoon]. Technically, it's an office under the embassy in Bangkok. But it will have staff from Sweden.

Q: Can Burmese citizens apply for Swedish visas through this embassy office here, or must we still apply in Thailand?

A: Still through Thailand. We're working on facilitating the possibility of applying through another European embassy in the Schengen cooperation. But so far, we don't have an agreement with another country that has an embassy here, so unfortunately for the moment there is no change on that front.

Q: Do Swedish investors have their eyes on Burma?

A: Yes, many Swedish companies, just like companies from other countries, are very interested. But only a few have established themselves, so far, mostly through representative offices or a local agent. It's usually retail, they have someone who has an organization. For instance, we have bus companies, Scania and Volvo, and they both have local representatives that are supplied from outside, from Thailand and Malaysia, where there is manufacturing and assembly of buses and trucks, construction equipment. Also Ericsson, the big telecommunication company, is here with several people, and they are expanding because they are also active in helping set up a telecommunications network in Myanmar.

Q: Are companies particularly interested in heavy industry here?

A: We have companies with lots of experience in those sectors. I think they, as many others, are cautious because the legal framework can be a little opaque, not quite clear to them yet, while infrastructure is not fully up and running. There's a big need for modernization. And it's also hard to find staff. Sometimes I think they are deterred because things have gotten very expensive, especially in Yangon—the prices for rent, for housing, for the good staff. And it's good that there is demand, but it's also a bit of a deterrent perhaps for smaller companies. So a lot of interest, still a slow trickle of companies actually coming in, but many delegations traveling here and studying different sectors.

Q: Do you think Burma's economy is on track?

A: If you look around, obviously things are changing very quickly. There is a very ambitious reform program that the government has put forward. Many challenges remain. It's been a long time when the country was more or less isolated from the outside world, from the international economy, so you don't change that overnight. But again the interest is there, and continued understanding that trade is good and can be a very positive factor. … The government is very interested in attracting foreign direct investment, and that's one good factor, but in order to actually convince investors there needs to be a lot of things instituted in the legal framework, on infrastructure, on salaries, education and training. It's happening, but it will take some time, and everyone understands.

Q: The government's negotiations with ethnic armed groups are not over yet. Does ongoing fighting make investors hesitant to enter the country?

A: You would have to talk to companies obviously, but they all very interested in learning. And when we dialogue with companies, we think it very much in our mandate to give them our assessment of what's going on. Also, here it's very positive that there is structured dialogue around a national ceasefire. It's not an easy thing, and we see that, and everyone knows it's not an easy thing, or you would have had a national ceasefire agreement by now. Even when you have a national ceasefire agreement, of course that's not necessarily the same thing as peace everywhere, and we understand that, and I think the serious investors will also understand this. To answer your question specifically, I'm not sure how much it deters them. I think it's the factors that I have been pointing to before, on infrastructure, legal framework, etc., but of course those who do care and who take time and learn about this will ask more and will want to know. We are happy to see there is movement, that there is development, but we also realize there is a long way to go.

Q: What would you say about the state of Burma's press freedom?

A: I see changes, especially in print media the last few years. There has been certainly a dramatic change and the possibility for certain publications to come to Yangon and have their offices in the country, and we think that's very positive. Media freedom is extremely important to us, it's part of the overall democracy and human rights concept. On broadcast media, we see that there are stronger restrictions. It's not as open, it seems to us that there's more to be done there.

The post A Conversation With the Swedish Ambassador to Burma appeared first on The Irrawaddy Magazine.

The Irrawaddy Business Roundup (June 7, 2014)

Posted: 06 Jun 2014 05:15 PM PDT

MOGE Looks for Joint Venture Partners in 'Corporatization' Plan

Burma's controversial government-controlled oil and gas agency the Myanmar Oil & Gas Enterprise (MOGE) is inviting foreign companies to bid to take part in a new round of industry developments.

MOGE is seeking expressions of interest to take part in joint ventures ranging from onshore block exploration to pipeline construction, said the Myanmar Times, quoting agency director Than Min.

No details of the potential joint ventures have been announced but firms interested in being considered must register by June 30, Than Min told the weekly newspaper, adding that it marked the beginning of a corporatization program for MOGE.

MOGE has long been tainted by its close links to the former military regime, which struck secretive deals to sell Burma's offshore gas abroad, notably most of the 50 billion cubic meters so far confirmed in the Shwe field in the Bay of Bengal to the China National Petroleum Corporation.

The Burmese government is preparing to apply for membership of EITI, the international Extractive Industries Transparency Initiative, which requires countries to be more accountable about business concerning natural resources such as oil and gas.

Race to Approve Bourse Rules Before 2015 Start-Up Deadline

Rules for the administration of a new stock exchange in Rangoon have yet to be finalized and approved, a key official said, despite an October 2015 start-up deadline.

A set of proposed rules based on the Securities Law passed by Burma last year have been submitted to the country's attorney general, but they are only part of the process to establish a Securities and Exchange Commission, which will oversee licensing brokers, dealers and underwriters, Myanmar Securities Exchange Center managing director Shigeto Inami said, according to the Myanmar Times.

The Center is the administrator of Burma's outmoded and tiny shares dealing business, which has only two companies listed, both of which are government-linked. The Center is a joint venture between the state-owned Myanmar Economic Bank and Japan's Daiwa Institute of Research Limited.

Japan is helping the Naypyidaw government prepare for a modern, electronic stock exchange.

Shigeto Inami told the Myanmar Times he was unsure if a regulatory system will be in place by October next year. "At the moment we have a law but no authority to govern," he was quoted saying.
Burma is the only country in the 10 nation Association of Southeast Asian Nations which does not have a functioning stock exchange.

Bangladesh Considers Nuclear Power Plant on Bay of Bengal Island

The Bangladesh government is considering building a nuclear power station on an island in the Bay of Bengal off the country's southern coast.

An exact location for the plant has not been identified but some of the remote islands referred to by Prime Minister Sheikh Hasina are quite close to Burma's border.

"We have many isolated coastal islands in the country's southern part. I have envisaged building another nuclear power plant to meet our growing demand for electricity," Hasina was quoted by Bangladeshi media as saying at a meeting with the country's Ministry of Science and Technology.

Russian companies have begun building a large 2,000 megawatt nuclear power plant in northwest Bangladesh which is scheduled to be completed during 2017.

Bangladesh suffers from severe electricity shortages like Burma and is also building coal-fueled power plants, said the industry news website Energybangla.

Electricity shortages in southern Bangladesh are so bad that scores of factories in the port city of Chittagong have had to close down, Energybangla said.

New Burma Airlines Tout for Business at Bangkok Trade Fair

Two new private Burmese airlines used a travel trade fair in Bangkok this week to promote their businesses and plans for cross-border services.

Mann Yatanarpon Airlines, which currently operates only within Burma, announced at the Thailand Travel Mart its plans for flights between its home base Mandalay and three venues in Thailand—Chiang Mai, Bangkok and Phuket—said trade newspaper TTR Weekly.

"[Local] carriers will have to prepare for competition once the ASEAN single aviation market begins to take off as part of the ASEAN Economic Community," airline marketing manager Wutyi Maw told the paper.

Also present at the Bangkok trade fair was Rangoon-based Asian Wings Airways which already runs flights between Mandalay and Chiang Mai. The firm outlined plans to use Mandalay as a hub for incoming travelers to fly on to several smaller airports within Burma, said TTR Weekly.

Ministry Says Planning Work Has Begun on China -Burma Railway

Survey work for a trans-Burma railway running from China to the coast at Kyaukphyu has begun, according to a report quoting the Ministry of Transport.

The 950-kilometer line will follow the route of the twin oil and gas pipelines also linking Kyaukphyu with China, said Eleven Media citing a ministry report.

"The report notes that religious and historical buildings are located on the 950 kilometer route, the report said. The ministry pledged that it would adhere to international standards in the project and that it would proceed with transparency," said Eleven Media.

Kyaukphyu is where gas is piped ashore from the Shwe field in the Bay of Bengal and also where China has built a deep-draft port terminal to receive crude oil shipments from the Middle East for its pipeline.

The railway was agreed by Burma's former military regime and is considered by China to be vital to its involvement in the Kyaukphyu Special Economic Zone. The proposed railway enters China via the border town of Muse.

The post The Irrawaddy Business Roundup (June 7, 2014) appeared first on The Irrawaddy Magazine.

Reforms for Whom?

Posted: 06 Jun 2014 05:00 PM PDT

There are more magazines and journals under the reforms, but citizens are still waiting for good news in the form of concrete improvements to their lives. (Photo: Reuters)

More than three years have passed since Myanmar embarked on a series of reforms that many foreign observers hailed as the start of a new democratic era. For most people inside the country, however, the signs of change have been far less dramatic.

Ask the average person in Yangon or any other part of the country if their life has improved since the current quasi-civilian government came to power in 2011, and their response will likely be ambivalent at best.

Yes, they might say, there are more newspapers for sale now. But if you read them, what will you find? War still raging in the north, sectarian violence on the rise, journalists and protesters getting locked up—the same old story.

How about the economy? Doesn't that look more promising than before?

Yes, if you were rich to begin with. But if you were poor before, you are still poor today—maybe even poorer, because even if the standard of living hasn't risen, the cost of living certainly has.

Perhaps these are early days, and things really will pick up dramatically in the long run. But if you were to listen to many of Myanmar's newfound foreign friends, you would think that the country has already taken great strides, and that the Golden Land gold rush can only continue apace.

For many, resource-rich Myanmar, with its vast pool of cheap labor and seemingly unlimited potential for development, is simply too good to pass up. Add to this the fact that it occupies a strategically important corner of Asia, at the crossroads of India, China and Southeast Asia, and you can soon understand why foreigners are so keen to increase their influence here.

Aung Zaw is founder and editor of the Irrawaddy magazine. He can be reached at aungzaw@irrawaddy.org.

Even when it was a pariah to much of the rest of the world, Myanmar was an attractive place for investors and governments from neighboring nations. Now, however, it's not just a handful of countries vying for a piece of the action, but a whole world of well-wishers with dollar signs in their eyes, looking to pull Myanmar into their orbits.

It was the United States that opened the floodgates when, in November 2011, President Barack Obama sent his secretary of state, Hillary Clinton, for a historic visit that signaled the end of Myanmar's long era of isolation from the West. But even before then, some countries—notably Norway and several European Union nations—were moving closer to engagement with a regime that many critics considered beyond redemption after decades of human rights abuses and disastrous mismanagement of the economy.

Norway always seemed an unlikely advocate for closer relations with the junta, given its history of supporting the pro-democracy movement. By bestowing the Nobel Peace Prize upon Daw Aung San Suu Kyi, the figurehead of the movement, the Norwegian Nobel Committee raised her stature to that of an international icon. And by funding and hosting the Democratic Voice of Burma, Oslo put itself firmly on the side of those seeking democratic reforms inside Myanmar.

All of this began to change in the late 2000s, when Oslo decided it was time to change its tack and begin putting more emphasis on economic engagement and stop urging Norwegian companies to refrain from trade and investment in Myanmar.

In due course, Norway's controversial gamble on engagement paid off, both in terms of reforms (which one Norwegian diplomat haughtily informed me Oslo had "foreseen") and in terms of lucrative contracts with Myanmar's self-styled "reformist" government (including a license for Norwegian multinational Telenor to develop Asia's last frontier in mobile and Internet expansion, and another for Norwegian state-owned firm Statoil to explore one of Myanmar's most promising offshore oil and gas blocks).

Now Norway and many other countries—from Australia to the United States, and Germany to Japan—are so heavily invested in this reform success story that nobody wants to hear that it is still far from clear whether Myanmar is really moving in the right direction.

Perhaps from a distance, such doubts seem unwarranted. But until the people of Myanmar can begin to feel that they are the true beneficiaries of their country's supposed "reforms," foreigners who have done well off of the government's newfound openness should probably keep their self-congratulations to themselves.

Aung Zaw is the founding editor-in- chief of The Irrawaddy. This viewpoint first appeared in the June 2014 print issue of The Irrawaddy magazine.

The post Reforms for Whom? appeared first on The Irrawaddy Magazine.

National News

GAP to bring ‘Made in Myanmar’ to US shelves
Palaung ethnic rebel claim Tamadaw commander dead
Myanmar commits to ending sexual violence in conflict

GAP to bring ‘Made in Myanmar’ to US shelves

Posted: 06 Jun 2014 01:05 PM PDT

American shoppers will soon be finding "Made in Myanmar"clothing back on the shelves, with clothing giant Gap Inc setting up manufacturing in country.

Palaung ethnic rebel claim Tamadaw commander dead

Posted: 06 Jun 2014 12:25 PM PDT

The Ta'aung National Liberation Army has claimed responsibility for the killing of a Tatmadaw battalion commander and two other officers during clashes in Shan State's Kutkai township.

Myanmar commits to ending sexual violence in conflict

Posted: 06 Jun 2014 12:22 PM PDT

Myanmar has agreed to endorse the Declaration of Commitment to End Sexual Violence in Conflict ahead of a major global summit next week, the British embassy in Yangon has announced.

Friday, June 6, 2014

Democratic Voice of Burma

US govt fines Fokker $21 m for violating sanctions
Kachin court slaps jailed IDPs with additional sentences
Burma Business Weekly
Displaced Thilawa villagers descend on Tokyo
Burma needs modernized rice mills, says industry association
KNU urges Thein Sein to head party in next term

US govt fines Fokker $21 m for violating sanctions

Posted: 06 Jun 2014 04:21 AM PDT

Dutch aerospace firm Fokker has been hit with a US$21 million penalty by the US government for selling US-made aircraft parts and goods to customers in Burma, Iran and Sudan, in violation of trade sanctions.

According to a statement released Thursday by the US Attorney's Office in Washington DC, Fokker Services violated US laws by engaging in "illegal transactions involving the export and re-export of aircraft parts, technology and services to customers located in US-sanctioned countries, specifically Iran, Sudan and Burma" between 2005 and 2010.

More than 1,100 shipments of US-made spare, repaired or exchanged parts were sent to the three countries during this five-year period and the gross revenue amounted to approximately $21 million, the statement said.

Half of this amount will be forfeited as a claim settlement to the US Department of Justice, while the other $10.5 million will be paid out to the US Commerce and Treasury departments.

"For years, Fokker Services treated US export laws as inconveniences to be 'worked around' through deceit and trickery," said US Attorney Machen in the statement, adding that this action sends a "clear message" that companies trying to circumvent US trade laws will face consequences.

The "schemes" initiated by Fokker were described as "work-arounds" in internal company documents, and they included withholding aircraft tail numbers to US-based repair shops or providing false numbers; US- and UK-based repair shops were usually told that the parts were simply going to be kept as stock.

The Dutch company revealed these transactions in a June 2010 disclosure to the US Commerce Department's Bureau of Industry and Security and the US Treasury Department's Office of Foreign Assets Control.

Fokker Technologies, the parent company of Fokker Services, said in a statement on its website that after they submitted the disclosure, the company conducted an internal investigation into the number of transactions that violated US trade sanctions, and employees involved in this criminal violation went through a "disciplinary review."

"FS [Fokker Services] identified transactions related to the sale of maintenance parts and repairs for Fokker aircraft, to which trade restrictions of the United States applied," the statement said. "FS sincerely regrets the historic conduct. The current management of FS is firmly committed to compliance."

Sean Turnell, a Burma economics expert from Australia's Macquarie University, told DVB by email that Fokker likely came forward with its 2010 disclosure because criminal charges, along with much higher fines, were looming.

"The [$21 million] fine is stiff, but the penalties are not as great as they could have been," Turnell said. "Fokker has many interests still in aviation services, some of which are located in the US. They needed to protect these."

With Burma's economic landscape changing so rapidly, especially in terms of potential aviation contracts as the country opens up, Turnell said that the Dutch company must have sense that it was "better to settle old problems now in the hope of better times ahead."

The aircraft supplier first came under scrutiny in relation to Burma after a Fokker-100 aircraft operated by Air Bagan – which is owned by Tay Za, a Burmese tycoon with close links to the junta — crash-landed in Heho Airport in Shan State, killing two and leaving 11 injured.

Kachin court slaps jailed IDPs with additional sentences

Posted: 06 Jun 2014 04:14 AM PDT

Three Kachin IDPs serving jail terms have been found guilty of further crimes.

On Thursday, a Myitkyina court found the trio guilty of breaching the Explosives Act and sentenced the refugees, La Ring, Lahpai Gun and Brang Yone, to prison terms of three, 13 and 14 years respectively.

The three were arrested in 2012 at the Baptist Church in Myitkyina where they were taking shelter after fleeing their homes amid fighting between Burmese government forces and the Kachin Independence Army (KIA).

Shortly after their arrest, the three, along with fellow IDP Zaw Bauk, were charged under the Unlawful Association Act for alleged links to the outlawed KIA.

Over a year later, in November 2013, each member of the quartet was found guilty and sentenced to serve two years in prison.

Further to this, arresting officers believed Lahpai Gun, Brang Yone and La Ring to be linked to a bomb plot. The three were charged with multiple crimes under the Explosives Act.

Those charges have been brought to court in a somewhat piecemeal fashion. In December, Lahpai Gun and Brang Yone were sentenced to five additional years in prison after being found guilty on a number of charges.

A Myitkyina court heard the remainder of the charges on Thursday, and further extended the IDP's stays in prison.

Their lawyer, Mar Khar, confirmed the lengthy additional sentences.

"Brang Yone was sentenced to 14 years on Thursday under four separate charges while Laphai Gun was sentenced to 13 years, and La Ring to three years," he said, adding that all three were already serving terms in Myitkyina Prison – Brang Yong and Lahpai Gun seven years each and La Ring two years.

Mar Khar slammed the court's decision on Thursday as unfair, and criticised the judicial authorities for aligning with the government and military instead of seeking justice for civilians.

"The sentencing of my clients show that the judicial system in Myitkyina is dented and there is absolutely no rule of law," said the lawyer.

"The courts are sentencing innocent civilians in favour of the government and the military, instead of providing them with legal protection."

The lawyer said he is planning to lodge appeals on behalf of his clients, focusing on the unlawful association charges.

The appeals will be heard at the Supreme Court in Naypyidaw on 17 June.

In July 2012, another Kachin IDP, Lahtaw Brang Shawng, was sentenced to two years in prison under the Unlawful Association Act, having been arrested by the Burmese army and allegedly tortured. Lahtaw Brang Shawng was freed as part of a presidential amnesty in June 2013.

For more background: https://www.dvb.no/news/kachin-idps-sentenced-to-5-years-under-explosives-act-burma-myanmar/35503

https://www.dvb.no/news/four-kachin-idps-sentenced-for-unlawful-association-burma-myanmar/34468

Burma Business Weekly

Posted: 06 Jun 2014 03:41 AM PDT

Ups and Downs

The Burmese currency held steady this week with the buying rate finishing on Friday at 965 kyat to the US dollar — slightly up from 966 last week – while the selling rate rose slightly to 972 kyat to the dollar. The price of gold also did not fluctuate drastically, sitting at about 650,000 kyat per tical compared to last week's 649,800 kyat. Fuel prices remain unchanged: Petrol is 820 kyat per litre; diesel 950 kyat; and octane 920 kyat a litre. Rice also remains constant: high-quality Pawhsanmwe rice is selling at 1,300-1,600 kyat per basket while low-quality Manawthukha retails at 900 kyat per basket in most Rangoon marketplaces.

Ooredoo defends itself in face of boycott campaign

Telecoms giant Ooredoo has defended its presence in Burma in the face of a campaign led by Buddhist monks urging customers to boycott the firm on the basis that it is based in a Muslim country: Qatar. "At the end of the day, we're an international telecommunications company and our focus is on providing great products and services for our customers," said PR manager Thiri Kyar Nyo. She noted that Ooredoo currently employs more than 700 local staff in Burma, and has an outreach policy focused on healthcare, education, women's empowerment, and youth programmes.

US govt fines Fokker $21m for violating sanctions

Dutch aerospace firm Fokker Services has been hit with a US$21 million penalty by the US government for selling US-made aircraft parts and goods to customers in Burma, Iran and Sudan, in violation of trade sanctions, according to a statement released Thursday by the US Attorney's Office in Washington DC. More than 1,100 shipments of parts were sent to the three countries between 2005 and 2010, and the gross revenue generated was approximately $21 million.

Six jetties underway in Rangoon

Construction is underway for six major jetties in Rangoon — four in Ahlone Township and two in Botahtaung — according to state media. The report said that the terminals or ports are designed to accommodate large freighters to ease handling of a surge in shipping trade. While imports and exports continue to rise, Burma still lacks large ports and modern equipment. According to the report, large ships have to anchor in the gulf and move products to smaller boats for docking.

Aid for Burma quadrupled in May

Burma received a total of about US$480 million in international aid and loans during the month of May — four times the amount received in April — according to data released by the Myanmar Peace Centre. The amount includes several newly implemented programmes, such as a $300m loan from China for transportation upgrades and $100m in aid from the World Bank for the education sector. An additional $55m from the International Monetary Fund will go towards the finance sector, while $12m from UNICEF has been allocated for child welfare programmes in Arakan State.

UPP gets go-ahead on $46m power plant

The Myanmar Investment Commission issued final permit documents to Singapore-listed conglomerate UPP Holdings Ltd, giving the company the green light on a US$46.5 million power plant project, according to Myanmar Business Today. UPP signed a turnkey agreement with Burma-based MSP Tractors Pte Ltd and Myan Shwe Pyi Tractors Ltd to build the power plant last August.

ADB supports renewable energy in Burma

The Asian Development Bank is to provide an additional US$2 million to encourage the Burmese Ministry of Agriculture and Livestock to harness renewable energy sources. The technical assistance project will provide access and investment plans for renewable energy, as well as demonstrate the implementation process through the construction of small solar and biomass power generators. Contrary to other media reports, the loan will not support power to an eventual 400,000 homes. The loan is in fact an extension to a $60million loan for a Power Distribution Improvement Project.

Thilawa villagers submit complaint to JICA in Tokyo

Three villagers from Rangoon's Thilawa Port area submitted a formal complaint on Monday to the Tokyo headquarters of Japan International Cooperation Agency (JICA), which is leading the controversial development of a special economic zone. Farmers Mya Hlaing, Sansha Tin and Khine Win travelled to the Japanese capital, with help from monitoring group Mekong Watch, after their concerns over deteriorating living conditions were allegedly ignored by JICA's office in Burma. The delegation also met with Japanese parliament members.

Burma to substitute white rice with parboiled rice

Burma is planning to replace white rice with parboiled rice for local consumption, with the Ministry of Health citing the health and cost benefits of this type of rice, which has been partially boiled in the husk, according to rice industry publication Oryza. Together with the Myanmar Rice Millers Association, the ministry started a campaign to promote parboiled rice, which contains vitamin C and is 15 percent cheaper than white rice.

Sunday, June 8, 2014

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