adv.pmd 11 1/21/2014, 7:12 PM adv.pmd 12 1/21/2014, 6:37 PM adv.pmd 13 1/21/2014, 6:38 PM adv.pmd 12 1/21/2014, 6:30 PM adv.pmd 13 1/21/2014, 6:30 PM adv.pmd 11 1/21/2014, 6:16 PM adv.pmd 11 1/21/2014, 7:23 PM adv.pmd 11 1/21/2014, 6:33 PM adv.pmd 11 1/21/2014, 6:04 PM adv.pmd 12 1/21/2014, 6:05 PM adv.pmd 13 1/21/2014, 7:32 PM Editor’s Note

This month, we would like to highlight the role of Myanmar women who can play a greater role in many areas such as politics, business and civil society. Myanmar hosted an international women's forum for the first time in December, 2013. The traditional role of women here took a revolutionary turn, which is quite a significant change in a coun- try with deep-rooted cultural traditions. However, the prospect of this becoming a sweeping change remains dim. Myanmar has several edu- cated women with higher education of MAs and PhDs. But they are not ACUMEN in high-ranking positions in the government. That impasse reflects the unequal distribution of jobs among men and women. This fact reminds Editorial Board

me of a Japanese professor saying ‘‘The worst waste of all is the waste CEO / Chief Editor of human resources". He declared this at a lecture at the Institute of Dr. Htet Zan Linn Economics in Yangon years ago. We are wasting human capital and Director Dr. Hein Thu Aung, Tin Tun Kyaw the damage is incalculable. Another point I would like to make is the Executive Editor lack of reliable data about our country to be provided to potential inves- Phyo Wai tors. Here in this edition, we have included a question and answer with Editors a company offering expert research and risk quantification services. Hein Zaw, Khin Win, Khaing Minn Nyo

Twenty years of strong trade restrictions and other non-market-based Contributors measures in Myanmar resulted in misleading historical data of low Hein Zaw, Myitmakha, Dr.Tin Maung Kyi, Naing Thit, Jacob Andrew Clere, quality and availability that hamper analysis of the current state of af- Khaing Minn Nyo

fairs in the country. We need to address this issue urgently for the Cover development of this country in future. Last but not least, I would like to Hatt Kawt disseminate the comments made by two very well-known and success- Designers Aung Aung (AN Computer), Win Minn Thein ful entrepreneurs in Myanmar. One of them pointed out that the exorbi- Computer Operator tant prices of properties are not conducive for investors. This is also one Zin Wai Wai Shein

among so many issues Myanmar needs to tackle if it is genuinely will- Marketing Department ing to beckon investors. Above all else, is the question of political stabil- January Khine Mon, Naw Keziah, Yadanar, Nan Mo ity. A Photographers Aung Kyaw Moe (New Image), Myitmakha, Hein Zaw

Advisors Publisher and Copyright Dr. Htet Zan Linn Prof. Dr. Aung Tun Thet (President's Economic Advisor) Prof. Maw Than (Rector (Ret), Yangon Institute of Economics Yangon) Printer Soe Tint Aung (Special Consultant for Advocacy, PSI Myanmar) Dr. Tun Lwin (Consultant, Myanmar Climate Change Watch,Tun Lwin Foundation) Than Lwin (Deputy Governor (Ret), Central Bank of Myanmar) Tin Zan Kyaw (Principal, Device Business Management Academy) Grace Swe Zin Htaik (Media Advocacy Advisor, PSI Myanmar)

Office No. 24/26, 4B-C, Race Course Condo, South Race Course Street, Tamwe Township, Yangon. Tel : (+959) 420033355 66 77 (Hot Line), (+959) 73045140, 49317457, 73143313, (+951) 8603886, 8603887 ~ ~ [email protected] [email protected], [email protected], [email protected], [email protected],

Masthead.pmd 1 1/21/2014, 6:02 PM Voices

Foreign Direct Investment Under the new government, all the ob- is a pre-requisite in trying stacles have been reduced. Previously, there were import restrictions for the to develop the country. quality and the type of beans and Loans and aids are sesame. However, there were some il- legal export and import in black market required. Without money, trading. The country's economy will go we cannot establish and down if we don't do things wisely, swiftly and in collaboration with one another make a country because Myanmar is located between beautiful. big countries like China and India; Thai- land and Bangladesh. Dr. Sai Sam Tun Chairman Loi Hein Co., Ltd. U Win Myint Minister of Commerce Basic salaries need to be revised . At present, the amount each employee is getting is K1.5 lakh a month including Before constructing an over time and bonus. There are irrigation canal, we We need more factories where workers' lowest need to find out if it is educated people. We necessary or not or and income ranges from K60,000 to which is the solution. need to upgrade our K70,000. It is very sorrowful. Actually, Then the feasibility education. If we have study must be their basic salary is K40,000. It is more educated conducted. It also needs persons, we can hire necessary to pay more. It is required to check if it is commercially and house maids from to calculate the costs for the survival financially feasible. It is other countries. or the livelihood of a worker. also required to take into consideration U Yu Yu Lwin about the Chairman environmental impact. U Maung (a) Pyithit Nyunt Wai Social Welfare Organisation

General Secretary U Cho Cho Federation of Trade Unions-Burma Irrigation Specialist

ACUMEN ⏐ 11

Voices.pmd 11 1/21/2014, 4:41 PM Photo Feature

adv.pmd 12 1/21/2014, 6:07 PM adv.pmd 13 1/21/2014, 6:09 PM News in Brief

Foreign garment investment growth in towns gets 24 hours electricity

On account of being high in living cost, foreign investment in garment industry is in high in town gets 24 hours electric- ity, according to Myanmar Garment Manufacturers Association. ‘‘At present, the investor in garment sector invests in Bago and Pathein region, we notice" said U Myint Soe, President of Myanmar Gar- ment Manufacturers Association. The main challenges of foreign investment pended on human resource and some days, there are some protests in this area to flow into Myanmar are high property investment from Hong Kong, Singapore, and abolish order in some factories," said cost and lack of infrastructure, accord- and Japan are about to come in gar- a director from Hlaing Tharyar Indus- ing to U Aung Naing Oo, the Director ment sector. So, the garment industry is trial Zone 4. Because of some problems General of Myanmar Investment Com- growing and orders from South Korea between employees and employer, de- mission. and Japan are in high because of relax- lay process in port by government pro- Last year, most of investment de- ation from European countries. ‘‘These cedure, some order move to Vietnam. A

First Myanmar Marketing Forum with Phillip Kotler, Over 80,000 business tourists visited holds in March Myanmar More than 82,000 tourists visited well-known author, marketing profes- Myanmar through visa-on-arrival appli- sor, consultant and economist. cation in 2013, according to the Immi- A Thai marketing expert and Japa- gration Department at the Yangon In- nese Market expert will participate and ternational Airport. Business people from Pro; Dr. Aung Tun Thet, President's eco- 26 countries were permitted visas-on- nomic advisor, will facilitate. arrival from June to end of 2012 and The press for the forum was held at another 22 countries mostly from Europe Trader Hotel during last year Novem- from February to end of 2013. Now the ber. In the press conference, Dr. Fahim, government has allowed visa on arriv- Chief Marketing Officer of Pro; Dr. Phillip Kotler and Dr. Htet Zan Linn, CEO/Chief Editor of Myanmar B2B Management Magazine and ACUMEN Magazine clari- fied about Forum in response to media's By the leading and conducting of Hub questions. Myanmar media published Myanmar The mission of holding this event is B2B Management Magazine and ACU- to deliver a high-quality seminar cen- MEN Magazine, Myanmar Marketing tered on the topic of Marketing. The Forum 2014, will be firstly held at Na- seminar will attract the most influential als for business people from 46 coun- tional Theatre, in Myanmar, on the date people from the Myanmar business com- tries. “Of all the tourists arriving the coun- of March 8th, 2014. munity as well as business persons from try, the number of those given visa-on- In the forum, Pro; Dr. Phillip Kotler other countries, according to the press arrival had reached 82,147 last year”, will offer lecture on Market Economic release. said U Aung Thiha, deputy director at Administration and his ideas on Mar- The forum is acknowledged and col- the Immigration Department. Most of the keting 3.0-Values Driven Marketing, and laborated by American Chamber of Com- tourists are from Thailand, Japan, response questions with appropriate merce and it is helped by other local Singapore, Canada and Spain. A professional answers. Pro; Dr. Phillip is media partners and sponsored by local companies. A 14 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

News in Brief.pmd 14 1/21/2014, 4:48 PM Insurance firms suffer But with several international firms fisheries and livestock sector has attracted waiting to enter the market, local insur- just US$347.474 million between 26 com- under restrictive ers are worried that restrictive polices panies, representing a mere 0.79 per- policies imposed by the IBSB will make it diffi- cent of the total $1.8 billion foreign in- cult for them to succeed. A vestment inflow as of September 30. When the government passed its for- eign investment law a year ago, hopes Investors avoiding were high that investment would pour into the fisheries sector. But so far this fisheries has not happened. “Farming production is still falling be- cause of a lack of investment. We need money from government and foreign investors to upgrade our businesses,” Outdated policies, uncompetitive premi- said U Win Kyaing, general secretary of ums and restrictive procedures imposed the Myanmar Farmers’ Federation. by the government’s Insurance Business Though would-be investors meet Supervisory Board (IBSB) are hinder- with farmers, there is little follow-up. “We ing efforts by newly established insur- welcome them warmly and invite them ance firms to find their feet ahead of a to visit our farms. But they don’t seem plan to open the market to international interested, and they don’t invest. We’ve firms next year, according to industry had plenty of discussions with foreign sources.Several privately run local insur- Foreign investors are staying away from organisations about loans or micro-financ- ance firms have opened their doors since Myanmar’s fisheries industry due to a ing, but it’s just talk,” he said. June last year when 12 companies were lack of infrastructure and the prospect Fisheries experts said investors granted licenses. The sudden opening of prolonged returns, experts said. might be frightened off by political un- of the insurance market broke a six- According to figures released last certainty and infrastructure defects, and decades-old monopoly on the sector by week by the Directorate of Investment suggest that the foreign investment law state-run Myanma Insurance. and Company Administration (DICA), the could be improved. A

Myanmar Post and Tele Communication to go public 2014

The Ministry of Communication and In- pany which is mostly formation Technology has announced owned by govern- that it will finalise the formation of ment officials’ shares. Myamar Telecom Co., Ltd, the public com- The two local com- pany in 2014. It will independently at- panies, The Myammar tempt to run of its own and without the Telecom.Co., Ltd. and country budget. Yadanarpon Teleport According to an official from the min- and two foreign com- istry, the company will run up as public panies-Ooredoo and company receiving loans and funds sup- Telenor, have to de- port from international community but velop 50 percent of the country’s shares would be included. mobile users in 2014- And then the company will try to be 2015 financial year. competitive with foreign telecommunica- The public are tion companies such as Telenor and watching their activi- Ooredoo. Along with MPT, Yadanarpon ties on forming the two companies as public companies with an eye also on discus- Teleport will also form as a public com- sion of government officials. A

ACUMEN ⏐ 15

News in Brief.pmd 15 1/21/2014, 4:50 PM News in Brief

Traditional gender roles hinder progress Plans for sustainable development in Tourism “[Success] is a challenge for business- women who are overloaded with fam- ily responsibilities. That’s why family is of paramount importance.” She said advances in family plan- ning had given women the power to control their lives. “My grandmother was one of 16 children. My mother was one While scientific advances have created of eight ... I have only one child. This new opportunities for women entrepre- gives us some room [to enter business],” neurs, traditional family roles can hinder she said. their progress in the business sector, Dr. Daw Thet Thet Khine highlighted leading businesswomen said at the Singapore as a positive example of cre- Myanmar Women’s Forum 2013 on De- ating an empowering arena for women cember 6. entrepreneurs by encouraging entrepre- Study has started in hills in Inlay, Kalay As a developing country, it is critical neurship through grants, streamlined and Chaung Thar beach for the sustain- for the economy to capture the contribu- business registration and family-friendly able development for tourism, accord- tion of its 30 million female citizens, labour laws. ing to Minister for Hotels and Tourism. Myanmar Women Entrepreneurs’ Asso- “If we want to develop the whole The study will be implemented with ciation vice president Dr. Daw Thet Thet country we don’t want to exclude the cooperation with Institute for Inter- Khine told the forum. women. By ignoring female entrepre- national Development and International “Women have qualities and can neurship, we will cut out half the Centre for Integrated Mountain Devel- make contributions [to the economy] but country’s contribution,” she said. opment and the ministry urged them to are still left behind because of traditional Tourism entrepreneur Daw Khin implement as soon as possible. practices,” Dr. Daw Thet Thet Khine said. Sandar Win agreed that tradition was a Electricity will be fully distributed in “In the private sector, you rarely see hurdle. A Chaung Thar beach and get more chance women in senior positions.” to work together with local government, according to the Ministry of Hotels and Tourism. Myanmar steamed rice target to EU Market Besides this, Myanmar reaches high- est in travels and tourism industry in Currently, Myanmar steamed rice is ASEAN so that there are some offers to mainly exported to Russia and will ex- support from western countries includ- tend to European market. At present, ing Italy. monthly export to Russia is between In main project of tourism will be 1,000 MT and 1,500 MT and setting up started soon and the project areas are new factories, according to Myanmar Yangon, Bagan, Mandalay, Inlay, Kyaik- Rice Federation. htee-yoe, Ngwe Saung, Putaro, Myike, After operation by those factories, rice Naga, Nat Mouk Taung, and Loikaw in- export will extend to European market. cluding Chaung Thar beach. The factories are now setting up in the About two million tourists from Asia, Bago and Ayarwaddy regions which Europe, Africa and America came in would be supported with India and Thai 2013 and next year there would be three technology. “Since 2008, three factories million with attractive preparation in all have been set up and some factories in sectors, according to a statement from Maw Gyun and Myaung Mya townships ministry. Majority of tourists are from Asia are under experimental operation. Rest and mostly visited places are Yangon, of it will start to operate in March. After to European market.” said U Thaung Bagan and Inlay. A finishing all of it, we will start to export Win from Shwe Zarchi Company. A

16 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

News in Brief.pmd 16 1/21/2014, 4:49 PM adv.pmd 11 1/21/2014, 6:53 PM Cover Story

18 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Leadership Role for Myanmar.pmd 18 1/21/2014, 5:07 PM Along with cultural changes that took place worldwide in the 21st century, the traditional role of women in Myanmar took a revolutionary turn. That is quite a significant change in a country with deep-rooted cultural tra- ditions; nevertheless the prospect of this becoming a sweeping change re- mains dim. By Hein Zaw

ACUMEN ⏐ 19

Leadership Role for Myanmar.pmd 19 1/21/2014, 5:08 PM Cover Story

An international Women’s Forum was held in Yangon for the first time on De- cember 6 and 7, 2013, attended by Women’s Forum for the Economy and Society President Ms Veronique Morali and Myanmar’s Daw Aung San Suu Kyi among more than 400 local and foreign women participants. Subjects discussed were more varied than expected. Women’s rights and responsibilities formed the main theme which also high- lighted the matter of ‘bringing Myanmar women to the fore’ or ‘in other words, ‘to enhance Myanmar women’s role in soci- ety’. ‘‘Myanmar has many educated women, particularly those with higher education MAs and PhDs’’, said a woman participant. ‘‘But I’d like to ask where are these women working? Why don’t we see them in decision-making jobs or high- ranking positions in the government?’’. That question reflects the fact of unequal distribution of jobs among men and women in Myanmar. It also indicates Myanmar women’s wish to effectively al- ter the image of them being traditionally portrayed only as housewives. They are interested not just in doing administra- tive business jobs; they are also very much zealous to play in such a predominantly male domain as the current internal peace talks between the government and the armed ethnic groups. ‘‘At the beginning of the peace talks we heard women would be invited to take part in them’’ said a woman discussing under the theme of ‘Women in the Peace-making Equation’. But I’d like to ask,‘‘Why don’t they now allow us in. Ceasefire is not just about armed conflict’’. Attendance at the Forum was re- been able to play a wider role and in Korea and Thailand. That serves as an stricted to responsible women from the several cases the leadership role. As in inspiration to woman folk in Asia that has government, NGOs and business circles. history where there were queens we now a sort of man-over-woman tradition or If teenage girls or young women had been have a steady stream of women presi- rather a tradition in which ‘man comes allowed to participate in the discussions dents and prime ministers: President first’. there would have been louder voices for Angela Merkel of Germany, President An influencing factor in Myanmar women’s rights. Dilma Rousseff of Brazil and President Women’s change of outlook is an increas- As global movement for sex equality Cristina Kirchner of Argentina are among ing contact with worldwide trends in and protection of children’s rights gath- prominent women leaders like several dress style, social behaviour and attitude, ers momentum, women worldwide have others playing leading roles as in South noticeably in underdeveloped countries.

20 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Leadership Role for Myanmar.pmd 20 1/21/2014, 5:08 PM they are admired for their good looks or beauty rather than for their educational or professional qualifications. Many women in Myanmar quit their jobs once they get married and restrict them- selves to the role of housewife leav- ing the husband in charge of earn- ing income for the family.

Women working in a village/Hein Zaw

For the first time in Myanmar we now for their good looks or beauty rather than women never going out to work are con- have women ministers and managing for their educational or professional quali- sidered to be living a decorous life. directors. fications. Many women in Myanmar quit In a Myanmar family the husband in their jobs once they get married and re- the head of the household often referred Female decorum strict themselves to the role of housewife to as ‘god of the house’ The Myanmar lan- Myanmar women enjoy a relatively leaving the husband in charge of earning guage has many expressions that put the greater measure of care and protection, income for the family. This is still the way husbands role or position above the wife’s: but there still remains much to be done with many families in the countryside a married woman is obliged to respect for more women to take part in leader- though it is less so in towns and cities. In her husband. As regards the state of ship roles. Traditionally, they are admired some rural areas stay-at-home young women’s rights, there are varied views

ACUMEN ⏐ 21

Leadership Role for Myanmar.pmd 21 1/21/2014, 5:08 PM Cover Story

Myanmar women participation inin politicspolitics willwill remainremain negligible,negligible, as long as we’re unable to adopt thethe quotaquota system./system./Messenger news

among women themselves. Daw May Win justice. ‘‘These women feel as if there’s far from satisfactory. Though there are Kyu, a woman aged about 60 said, ‘‘I no law for them’’, said Dr Daw Nyo Nyo more than 90 minister and deputy minis- wouldn’t say either inferior of superior to Thin, a Yangon Region MP, who had re- ter posts in the government, the Social man’’. Personally, I see men and women ceived many complaints. ‘‘They are eas- Welfare, Relief and Resettlement Minis- as equals.’’ But Ma Yamin Nwe Oo, a teen- ily bullied easily beaten it has become try alone has a woman minister. Six age girl said ‘‘I felt in my younger days something of everyday incident.’’ In the deputy ministers at the other ministries that my brother was treated with more absence of the rule of law most physical is a relatively small number. Though there favour. to me Dad would often say, ‘Your’e assaults went unreported. To avoid dis- are some women directors, women di- only a girl, you won’t be able to do any- grace to the village, rape cases were tra- rectors-general are few and far between. thing useful.’’ Sex equality seems to be a ditionally settled by killing a pig and dis- Men outnumber women in such places matter of individual opinion. Ju, one of tributing the pork among the villagers. as the health and education ministries the well-known writers expressed her Many young women leave school af- where there used to be a predominance views; ‘‘Women in Myanmar can enjoy ter learning the rudiments of reading and of women. In the two Houses of over 664- women’s rights in full, legally speaking, writing, a custom that stunts their leader- seat Parliament women make up only 4.67 that is. But in cases where you can’t see ship potential. There are some institutes percent (31 MPs). Even in countries that distinctly enough, such as a household the of higher learning raising women’s exam have just about the same level of devel- husband rules the roost and the wife takes marks required for admission above those opment as Myanmar, such as Cambodia a back seat perhaps under duress or of men. and Laos, women make up 25 percent to willingly out of her love and respect for 30 percent of MPs. him. What she said still rings true to this day. The gap is still wide Despite such unsatisfactory state of There are many cases of women be- Though there are some positive signs women’s role in politics there is an en- ing denied their rights to education and of change in women’s role, they are still couraging side: Daw Aung San Suu Kyi,

22 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Leadership Role for Myanmar.pmd 22 1/21/2014, 5:09 PM since 1990, has had a great influence over there have to be a change attitude to existing political parties is more than half the people in Myanmar. She is a woman women and a shift in official policy. Cul- the total number of members according the world has recognized as Myanmar’s tural change will take a long time; policy to some figures available. The number of democracy icon. The people look up to her as their great leader. She was ex- pected to be a candidate for the presi- dency in the coming general elections in Women’s Political Participation in ASEAN 2015. In the fields of civil society and entre- Country Last Women No.Seats preneurship Myanmar women made Election Elected some strides. They are now taking part actively is in such organizations as Cambodia National 2008 25 (20.33) 123 Myanmar Women Entrepreneurs’ Asso- Assembly ciation and UMFCCI. For example, Daw Indonesia House of 2009 104 (18.57) 560 Khaing Khaing Nwe, Associate Secretary- Representatives General of UMFCCI, is playing an active Laos House of 2011 33 (25) 132 role in dealing with employee-employer Representatives problems. Many big business companies, Myanmar House of 2012 4 (1.79) 224 however, continue to be dominated by Representatives men. There are several companies where Malaysia House of 2008 23 (10.41) 222/221 the husband is MD and wife is director, Representatives an instance of ownership overlapping Philippines House of 2010 65 (22.89) 287/284 management. Representatives Singapore National 2011 24 (24.24) 99 What the future holds Parliament Is there any likelihood of women get- Thailand House of 2011 79 (15.80) 500 ting a chance to play a leading role in the Representatives country’s future? It’s a good question. The Vietnam National 2011 122 (24.40) 500 Forum President Ms Veronique Morali Assembly said; ‘‘We want to listen to women in this Brunei - - - fast opening society, this fast growing so- ciety, we want to stand by when they are Source : 2012 Women’s Political Participation Report Asia-Pacific (SSRC) driving change’’ There’s a fervent wish for Myanmar women to get more opportunity of taking a part in the country’s administration and change is preferable, most people thinks, ence said, ‘‘Myanmar women participa- legislature. Ko Myo Yan Naung Thein, director of tion in politics will remain negligible, as For broader participation by women BAYDA Institute that teaches political sci- long as we’re unable to adopt the quota system’’. ‘‘Because’’, he added ‘‘Culturally, women have nothing to do with politics’’. Some argue that what it needs is not quota system but better educational qualification for women. A proposal for adoption of quota system was turned down in Parlia- ment in 2012. Some said the system, it adopted at all, should set a minimum on the quota to avoid restriction on the num- ber of women. Though traditionally a less number of Myanmar women than men have taken Women participants at Women’s Forum Myanmar 2013 an interest in politics, their number in

ACUMEN ⏐ 23

Leadership Role for Myanmar.pmd 23 1/21/2014, 5:09 PM Cover Story

Her being elected or not elected to be the President of Myanmar could affect the role of

A Ceremony of DKBA (Democratic Karen Buddhist Army) in Myanmar/ women in Messenger news Myanmar women attending the BAYDA Institute the official move to allow women into the classes make up more than 30 percent of ranks. Already there’re women body- society either in the total students and their enthusiasm guards to the President U Thein Sein. How points to a brighter future for woman’s far up these women can expect to rise a good way or a participation in politics. above their ranks in the army is some- Significant indeed is a recent admis- thing to wait and see. bad way. sion of women into Myanma Tatmadaw, The most interesting thing is the gen-

Source : The Gender Gap and Women’s Political Power in Myanmar (Global Justice Centre)

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Leadership Role for Myanmar.pmd 24 1/21/2014, 5:09 PM the section 59 (f) of the Constitution is acting as a barrier and until this section is amended there’s no way of her becoming Myanmar’s President. / Messenger News

eral elections to be held in 2015. People Myanmar’s President. Myanmar society either in a good way or in Myanmar and the rest of the world At the moment many political parties a bad way. She is now already nearly 70 are watching to see how things will turn including the NLD are making efforts to years old and it would take a long time out then. The NLD that had won a sweep- amend the Constitution. Daw Aung San before any woman can hope to become a ing victory (43 seats out of 45) in the 2012 Suu Kyi’s proposal for a dialogue on the lady of her calibre. by-election still holds sway over the Constitution amendment between herself, The current trend indicates an ever people. Provided the 2015 elections are President U Thein Sein, Pyithu Huttaw wider role in women leadership percep- free and fair she is most likely to become Chairman Thura U Shwe Mann and Chief tibly in the business field. It would take the president of Myanmar. But the sec- of Staff Senior General Min Aung Hlaing some time for women to get top positions tion 59 (f) of the Constitution is acting as a was rejected. Her being elected or not in the administration and political spheres. barrier and until this section is amended elected to be the President of Myanmar To become a head of state like president there’s no way of her becoming could affect the role of women in is still unpredictable. A

ACUMEN ⏐ 25

Leadership Role for Myanmar.pmd 25 1/21/2014, 5:10 PM adv.pmd 11 1/21/2014, 6:44 PM adv.pmd 11 1/21/2014, 6:57 PM Feature

28 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Gold.pmd 28 1/21/2014, 4:53 PM ACUMEN ⏐ 29

Gold.pmd 29 1/21/2014, 4:53 PM Feature

“My darling, buy me some gold jewellery if you really love me,” said the girl in a TV commercial and her man replied, “How can I afford to buy those expensive ones with my small income, my dear.” And then she said, “Then, I will bear in mind that you don’t really love me.” As soon as I had entered Shwebontha Street in downtown Yangon, I smiled thinking about one of the famous gold shop advertisements that I had watched on television some years ago. Many gold shops dotted around Shwebontha are alive with gold dealers, customers and various gold jewels and ornaments glittering in the light are dis- played on the counters of many shops there. Gold is traded as a standard in the economic system in which the value of money is based on the value of gold around the world and it is transformed into necklaces, earrings, rings and brace- Aung Thamardi Gold Shop lets as Myanmar people wear them valu- ing them as gold ornaments. Gold is a treasure that can attract Myanmar people who have been using it vestment. In the present day, ornaments such as earrings, anklets, trays Global gold price has decreased from and cups etc since ancient times of US$1,920 per ounce ( K108,900 per tical) in addition to invest- Myanmar kings. at most in 2012 to around $1,250 In the present day, in addition to in- (K709,200 per tical) during 2013 winter ing in land, vesting in land, Myanmar people buy gold season and domestic pure gold price has as a secure asset for savings in place of a also gone down from K795,000 per tical Myanmar people reliable banking system and a stable cur- to K650,000 over the same period. rency and moreover, they give gold they As domestic gold price that used to buy gold as a secure have saved to their offspring as inherit- surge in the winters of the previous years ance. has slumped with a fall in global gold asset for savings in “Banks have even day off if we want price this year, many gold shops are alive to draw our savings from the banks. Gold with big crowds who will purchase golden place of a reliable can be sold off any time. We can wear it ornaments. banking system and as ornaments when we are to attend “Despite high price of gold the previ- some ceremonies. I’ve come here to buy ous years, the metal’s price is on the con- a stable currency some golden ornaments when prices are stant fall in 2013. We have good sales on the decrease. I think it is not wrong due to decrease of gold price at home,” and moreover, they that we save gold because its prices often said U Win Nge from the Aung Thamardi surge compared to bank interest rate,” gold shop. give gold they have said Ma Moe Moe who visited the Aung The Federal Reserve Board has de- Thamardi gold shop. cided in QE tapering meeting in the United saved to their off- Demand for gold often rises when the States on 18 December to lower the prices of gold move down as customers amount of the purchase of securities from spring as inherit- like to buy golden ornaments as an in- US$85 billion to $75 billion a month and ance. 30 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Gold.pmd 30 1/21/2014, 4:54 PM Shwe Nandaw Gold Shop

SPDR Company noted for its dealing in money or gold jewels to the prospective of tical (a tical is equal to 0.576 ounces) to gold in the world has sold off the amount bride groom’s parents under Hindu’s cus- the goldsmith and therefore, only when it has accumulated. tom. gold price soars, they sell gold ornaments The decision of the FRB of the US It is said that there may be a fluctua- off. and SPDR Company’s selling off gold has tion of global gold price not only in the Now that according to the fluctuation resulted slump in gold price around the time of Deepawali festival in India but also of the gold price in the world, Myanmar world. during traditional festivals including Chi- has to change the gold price in its do- “Global gold price has declined not nese New Year in China. mestic market, which has been depend- only because SPDR Company has sold off “I don’t think Chinese people will buy ing on demand from some of neighbouring its gold on a large scale but also because a lot of gold ornaments because China’s countries such as Thailand, China and the European banks are facing debt prob- GDP has declined this year (2013) al- India for more than 30 years, it has to try lems. Price has dropped by more than though Chinese New Year is drawing to make efforts to penetrate the global gold K100,000 compared to previous maximum near. So, I think gold price remains un- market. price,” said U Win Myint, secretary of Gold changed. People who have solid gold of- As traditional units are still being used Dealers Association in Yangon Region. As ten sell off theirs owing to price decrease,” for measurement of gold rather than in- Indian people who value gold and wear said U Win Myint. ternational units at home although gold is it as ornaments in Myanmar buy a great If a piece of gold ornament is ordered measured in gram and ounce in the glo- deal of gold ornaments, especially in the from the goldsmith, people have to make bal market, Myanmar needs to change time of Deepawali known as Diwali, the payments not only for services but also its measurement system to be able to en- most important festival in India because for amount or value reckoned as decre- ter the global market, according to gold they believe that Deepawali brings good ment or loss in making the ornaments. dealers. luck for the business men and it is the In doing so they have to pay service “We need to transform our traditional time when people do maximum pur- charges and decrement ranging from measurement system into international chases and moreover, Indian people have three ywes (a ywe is equal to 2.1 grain or system if we want to compete with one the cultural norm to put up property or about 136.07 milligram) up to one sixteenth another in the global market. To do so,

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Gold.pmd 31 1/21/2014, 4:54 PM Feature

Myanmar Gold Dealers Association has foreign investments to gold industry. For- known to provide the interested parties already submitted the issue to the Minis- eign investors will not enter the country with the training courses that can sup- try of Mines. There is no country in the unless there are laws that protect them port relevant skills required for gold ex- world using traditional methods for mea- here,” he added. traction and process of end products and surement except Myanmar. If we have As the method of extracting gold not organize workshops since the quality of not changed our unit system for gold only impacts on environment but also Myanmar’s end products is poor due to measurement, no international investment makes many gold raw materials go to lack of modern technical skills. will enter the country to invest in gold waste for the want of relevant technical It is said that although gold with a industry,” said a member of the commit- skills although a good deal of gold is purity of 99.97 percent can be processed, tee of Gold Dealers Association in Yangon sourced in Myanmar, international gold foreign investments are needed to get Region. businessmen are required to invest in 99.99 percent pure gold that meets the There are many needs in Myanmar gold industry here. global standards here. gold industry ranging from gold extrac- “There is still cyanide process in the Myanmar gold businessmen are look- tion to processing of finished product to extraction of gold in our country. As gold ing forward to the time when foreigners make sure Myanmar’s gold dealers pen- extraction is implemented with environ- with expertise will come to invest in gold etrate the global market. mental conservation, it can be yet done industry at home so they can extract gold To overcome such difficulties, in our country. That’s why international with minimum environmental impact and Myanmar gold dealers should negotiate community needs to cooperate with us to export high-quality gold jewellery orna- with the foreign gold dealers with ex- be able to extract gold reducing environ- mented with exquisite handiwork. pertise in making end product to team mental impact as much as possible,” said “The entry of foreign firms can de- up with local joint venture partners, Min- U Myo Myint. velop Myanmar’s gold industry. We hope istry of Commerce’s Union Minister U Win Myanmar Gold Dealers Association is to get their expertise and technical assis- Myint said at the 11th annual meeting of Myanmar Gold Dealers Association. “I would like the gold industry to look up so much. I want to advise you to nego- As the method of extracting gold not only impacts on environment but tiate with Indian businessmen making also makes many gold raw materials go to waste for the want of end products as there are still poor tech- relevant technical skills nical skills in our gold industry,” he said at that meeting on 15 December 2013. As gold businessmen in India, China and Thailand have been making much profit on value added products into which they have transformed gold raw materi- als bought from Myanmar, domestic gold businessmen need to cooperate with those in neighbouring countries in coping with the problems concerning poor technical skills by introducing workshops and learning how to process raw materials from them, said U Myint Swe, Chief Min- ister of Yangon Region. Myanmar government needs to enact mining law in addition to Foreign Invest- ment Law so that foreign businessmen can invest in the industry at home, said U Myo Myint, chairman of Myanmar Gold Dealers Association. “Mining Law is in the course of dis- cussion and Foreign Investment Law is in need of revision in attempting to invite

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Gold.pmd 32 1/21/2014, 4:54 PM tance. We believe that cooperation with Shwebontha Street, I missed ngo-gyin “Mining Law is in the foreign firms can let production levels (wailing song) sung by Shwe-Mahn Tin course of discussion rise,” said an owner of the gold mining Maung, the great artiste in an opera well company. known as “A Couple of Ywe Traders” and Foreign Invest- An average 3 tons of gold a year can drawn from Buddhist scriptures. be extracted from some 800 gold mining “Gold, such gold for both my former ment Law is in need sites in Saging Region, Mandalay Region, wife and my latter wife, gold, gold, of Taninthayi Region, Bago Region, Kachin course, it was what I must be entitled to of revision in attempt- State, Shan State, Mon State and Karen have. No matter what you don’t want to State, say the sources of gold mining sites. give back my gold cup to me, you must ing to invite foreign Myanmar is known as Golden Land or do it and give back it to me; give back it the Land of Pagodas around the world to me, give back it, give back, give…back,” investments to gold because almost all famous pagodas and sang Shwe-Mahn Tin Maung, acting in industry. Foreign in- Buddha images all over the country have that opera as the selfish man who had been gilded from top to bottom by gone mad after losing the gold cup he vestors will not enter Myanmar people since the long time of thought he deserved to have due to be- the ancient history as of today. ing greedy for profit. the country unless Gold dust is swallowed by some I think not only Myanmar people but people, most of who are women to main- also nearly everyone in the world loves there are laws that tain their fair complexion and have a gold because it is a treasure that can make lighter skin. everything like money and furthermore, protect them here,” While I was walking along it may be more reliable than cash. A

An average 3 tons of gold a year can be extracted from some 800 gold mining sites in Saging Region, Mandalay Region, Taninthayi Region, Bago Region, Kachin State, Shan State, Mon State and Karen State

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Gold.pmd 33 1/21/2014, 4:54 PM Feature

34 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

The Massive Deep Sea Port in Dawei or the Strategic34 Point in Southeast Asia.pmd 1/21/2014, 4:58 PM ACUMEN ⏐ 35

The Massive Deep Sea Port in Dawei or the Strategic35 Point in Southeast Asia.pmd 1/21/2014, 4:59 PM Feature

hile the sea breeze is blow ing, crabs are running to and Wfro along the sand beach in Nebulae, a village 20 miles north of Dawei in Taninthayi Region in southern Myanmar. Silence reigns in the whole construc- tion site along the beach that can offer livelihood for fishermen and residents who live by planting cashew, rubber and palm oil in Nebulae village. Standing near his motorcycle, Ko Ashagyi is staring vacantly into the sea. While Italian-Thai Development Company (ITD) had been implementing the first phase of Dawei Deep Sea Port Project, which will be the largest deep sea port in Southeast Asia and Special Economic Zone, expected to be completed during 2010-2014, the project has been sus- pended because of financial matters. “We don’t believe in ITD as we’ve heard that they [ITD] do not have a good reputation in Thailand. We’ve learnt they have settled environmental issues there. Now they have to suspend the project because of financial difficulties. As they have done so, the property market here is in the doldrums for the time being,” said Ko Ashagyi, a motorbike taxi driver who is also a property broker in Dawei. He said that Dawei would be famous in Southeast Asia and Myanmar would also become the heart of Asia again owing to Dawei. Myanmar government has permitted in November 2010 the Italian-Thai Devel- opment Company (ITD), the third largest in Thailand to develop Dawei Deep Sea Port Project and Special Economic Zone with an initial investment of US$8.6 bil- lion under the terms of 75-year lease. cannot carry it out. We will have to look vember. The project has been suspended un- for other big foreign companies interested Dawei SEZ Management Committee der an agreement between Myanmar- in investing in this deep sea port,” said U will award Dawei SEZ Development Co, Thai sides since ITD is unable to invite Set Aung, chairman of the Development Ltd, which is to be founded in coopera- foreign firms to team up with the local Committee of Rules and Regulations for tion between Department of International partners to create a lucrative huge project Dawei Special Economic Zone and Addi- Business Relation of Myanmar and NIDA that needs some US$50 billion. tional Project Activities. (National Institute of Development Admin- “We have put off the project activities Decision has been made to postpone istration) of Thailand in investing 50 per- under bilateral agreements. The project the project during the fourth meeting on cent each in it. is so big that only one company alone Dawei Deep Sea Port Project on 21 No- “As a result of the decision made in

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The Massive Deep Sea Port in Dawei or the Strategic36 Point in Southeast Asia.pmd 1/21/2014, 5:00 PM Dawei Project/daweidevelopment.com

the meeting, ITD has not been permitted chairman of Dawei SEZ Management said. to continue the project activities any more Committee. He continued that shares will be sold under the agreement of the contract be- Dawei SEZ Development Co, Ltd has to public at home registering Dawei SEZ tween IDT and MPA (Myanmar Port been registered in Thailand to make sure Development Co, Ltd when Myanmar’s Authority). That’s why, first SPV (Special that it searches for investments required currency market has developed. Purpose Vehicle) has been formed in for the massive project by selling shares Special purpose companies (SPC) in- Thailand. The two nations will hold a 50- in the stock market of Thailand so as to terested in joining the project will make percent each share in the SPV in the ini- transform it into a public company within a contract with Dawei SEZ Management tial stage,” said Deputy Minister for the a few years and to ensure the smooth Committee to implement part of the Ministry of Transportation, U Han Sein, implementation of the project activities, he project activities as they are committed to

ACUMEN ⏐ 37

The Massive Deep Sea Port in Dawei or the Strategic37 Point in Southeast Asia.pmd 1/21/2014, 5:00 PM Feature

The Dawei SEZ Project which is ten times larger than MTF Industrial Zone in Ranong Province of Thailand, is hoped to be completed during its planned three phases from 2010 to 2019.

and ITD Company will be reimbursed for Dawei deep sea port and their commodi- be the largest deep sea port project in its initial investments after getting SPC’s ties can be transported to Thailand and Southeast Asia, includes many activities investments. sent to South China Sea via Thai Gulf. associated with the project such as the An International Consulting Firm will Then there can be new industrial zones construction of deep sea port, of docks, of be hired to scrutinize how much ITD Com- in the region and such commodity transit oil and chemical industries, of oil refiner- pany has spent on the project and the can also affect the interest of the coun- ies, of power plants, of coal-fire power extent to which it has completed its as- tries that are doing a land-office business plants, of Dawei-Bangkok highway and signments after suspension of the project by offering services for the freighters in railways, and of oil pipelines and shar- implementation to ensure the participa- Southeast Asia, said an engineer. ing of power supply. tion of international investors and devel- “As many investments such as indus- The reason why the construction of opers in the project. trial businesses and metal industries can Dawei Deep Sea Port being carried out International investors will be selected enter the country if there are a few envi- by IDT Company has been suspended is at the end of March 2014 for the seven ronmental limitations here, some coun- because the amount of investments of IDT initial projects and those selected compa- tries fear that foreign investments will de- Company is to be reviewed and only then nies will carry out the project activities crease. For instance, if parts of engines can other foreign investors be invited to from the start of 15 May till completion, and other machines made in Japan are join this huge project, said U Set Aung, according to a press release on Dawei assembled in Dawei and they are deliv- vice chairman of the Central Bank of Deep Sea Port. ered to the markets in both European Myanmar and a responsible personnel Some analysts express their opinion countries and Middle East, the market for the Dawei project. that political situations in neighbouring penetration can be much more effective “We can invite foreign businessmen countries such as Thailand, Myanmar and because of the cheap transportation to invest in this huge project as long as others may lead to such suspension of that charges. Accordingly, there may be some we have known how much ITD Com- project. countries in the region that do not want pany has invested here. Only then can “As far as geopolitics and geo socio- this giant project to be shaped up in we seek for other investors. We cannot economy are concerned, the effectiveness Myanmar. Even they may create some- do due diligence providing that ITD Com- of this project is huge. When this deep thing to make sure that investors are con- pany keeps on implementing the project sea port construction is completed, car- vinced that there are still political insta- activities. That’s why we have had to gos that are going to South China Sea from bility in both Thailand and Myanmar. It make ITD Company stop their activities,” India Ocean no longer need to go around is so important to watch them,” he added. said U Set Aung. Malaya archipelago. Instead they can land Dawei Deep Sea Port Project, which will To conduct due diligence, Dawei SEZ

38 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

The Massive Deep Sea Port in Dawei or the Strategic38 Point in Southeast Asia.pmd 1/21/2014, 5:01 PM The Global New Hub & Asia Regional Hub/dawei development.com

Management Committee will cooperate has not yet allowed heavy machines im- A trilateral meeting of Myanmar, Ja- with the three international audit consult- ported by ITD Company for the project to pan and Thailand was held on 21 No- ing firms among the four excluding KPMG, leave Myanmar as the company has not vember 2012 in Bangkok to make sure an audit consulting firm currently collabo- paid tax on them. Japan cooperates with Myanmar and rating with ITD Company and ITD Com- “Most of the Thai workers have been Thailand as a developer in implement- pany can also compete the tender for the sent to Thailand. The regional govern- ing Dawei SEZ Project. rest project activities when the tender ment has not yet allowed the heavy ma- “Only Myanmar and Thailand will not invitation is made for Dawei SEZ project chines to leave there. The authorities have be able to execute Dawei SEZ Project as if interested. stopped their return because tax has not huge investments are required to carry Myanmar government has already es- been paid for them,” said Deputy Minis- out the activities. That’s why we have in- timated land compensation of more than ter U Pone Swe for Social Welfare, Relief vited Japan, our close country that has K340 billion for local residents whose and Resettlement. enough capitals and considerable exper- farmlands have been confiscated for the Dawei SEZ will become the strategic tise in dealing with such giant projects,” huge project and there need to be more point among Southeast Asian countries said Ministry of Labour, Employment and than K307 billion to compensate the af- because commodities can be sent to Ma- Social Security’s Union Minister U Aye fected locals although ITD Company has laysia, Cambodia, and Vietnam through Myint, chairman of Working Committee given land compensation of K33 billion Dawei-Bangkok inland ways when the of Dawei Special Economic Zone and the for the local residents who have re- project is completed, according to some Associated Projects. nounced nearly 80,000 acres of farmlands. analysts. Both governments have intervened in Although a total of 16 villages have to move “The location of Dawei Deep Sea Port looking for investors to team up with lo- to another place at first since more than is strategically important to the region. It cal joint venture partners to tap opportu- 50,500 acres of land have been ear- is not a conventional special economic nities in the lucrative deep sea port be- marked for Dawei Deep Sea Port and zone. International merchants can save cause ITD Company has been unable to Special Economic Zone, now there are time and money of transportation charges continue looking for investments for the only six villages left to move to other for their commodities to other countries project. places. The width of the project area has by roads via this special economic zone. The Dawei SEZ Project which is ten been reduced reaching 48432 acres of Foreign investments will enter the coun- times larger than MTF Industrial Zone in land, according to Community Develop- try if it is full of promise for future busi- Ranong Province of Thailand, is hoped ment Sub-Committee for local people in ness. I’ve heard that Japan will invest in to be completed during its planned three the area related to Dawei SEZ Project. this project soon,” said the President’s ad- phases from 2010 to 2019 under ten-year It is known that the regional government visor Dr. Aung Tun Thet. project. A

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The Massive Deep Sea Port in Dawei or the Strategic39 Point in Southeast Asia.pmd 1/21/2014, 5:01 PM Feature

40 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

What's In Stock.pmd 40 1/21/2014, 5:24 PM Stock Market/Ahmad Nawawi-Flickr

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What's In Stock.pmd 41 1/21/2014, 7:21 PM Feature

There is an effervescent excitement in- toxicating the younger leaders in the Myanmar business community. The Yangon Stock Exchange - even the name heralds visions of a powerful and pros- perous future. Stock exchanges are, in the minds of most people, inextricably asso- ciated with glamorous, skyscraper be- decked urban centers in New York and Hong Kong, Tokyo and London. Surely if the most powerful cities in the world have stock exchanges, then a Yangon exchange means Myanmar is about to receive a tidal wave of business prosperity and possi- bility? I hate to crush dreams and trample on such lovely visions, but Myanmar already has a stock exchange. And, for that mat- People stop and check stock update on an electric market board ter, Laos and Cambodia have (disappoint- outside a securities’ form in Tokyo. ing) stock exchanges as well. Myanmar’s current securities exchange has techni- cally existed since 1996. Known as The Myanmar Securities Exchange Centre, it is a joint venture between Myanma Eco- supercomputers and lasers. (Lasers? Yes, My point is, Myanmar’s current ex- nomic Bank and Daiwa Securities Group. some financial transactions necessitate the change and the minuscule exchanges of As stock exchanges go, it is among the importance of milliseconds, and lasers are its little ASEAN brothers should prove cau- smallest on Earth. It engages in few trans- necessary to facilitate the immediate – tionary tales for the architects of the new actions and has fewer than a dozen staff. indeed, fast as light – transfer of informa- bourse. Fundamental problems still need It does with whiteboards and markers tion to exploit fleeting arbitrage opportu- to be overcome. Chief among these is the what other stock exchanges do with nities.) continuing lack of transparency and ac-

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What's In Stock.pmd 42 1/22/2014, 5:33 PM New York Stock Exchange/AZureon 2-Flickr

countability in business practices. The 1996 this, some legitimate – i.e. keeping your machines of efficiency. Myanmar compa- exchange launch was arguably hindered strategy secret can be critically important nies must recognize this and improve their by a reluctance among Myanmar’s in a competitive business context. How- practices accordingly. corporates to be fully transparent about ever, other reasons are less justifiable. Myanmar’s future financial superstruc- their business dealings. The culture of Many fear transparency because their ture can only be constructed on the backs secrecy in business is well established in company might not be paying taxes prop- of lawyers and accountancy firms. We Myanmar. There are many reasons for erly, or because they are engaging in ram- probably all dream of a future where law- pant nepotism, or because the company yers and accountants are merely an un- owner prefers to use a company slush pleasant memory, but in the world we fund as a private piggy bank – the rea- have they are immensely useful for en- sons for secrecy are many. Also, some suring the legitimacy of contracts and busi- company executives are just too lazy. Yes, ness dealings. Business dealings of any lazy. I do not like it, but I must use that sort require confidence between partners, word. Company executives recognize the but especially when significant investment benefits of clean and proper accounting, dollars are being transacted. I was privy but they do not want to invest the time to the visit of an investment banker from and energy to straighten themselves out, London several months ago. He was con- no matter the long-term benefits. After all, sidering investing a fairly large amount if lax accounting practices have been of money, indeed, he was interested in good enough in the past, they will be good assembling an investment portfolio com- enough in the future, right? Wrong. With posed of Myanmar companies. Did he? the vortex of changes occurring in No. Like so many others before him, he Myanmar’s business and policy environ- looked around for a week before hop- ment, you can expect companies with that ping a plane back to London. “Too early,” attitude to fail before the end of the de- he said. What he meant was that he wants Myanmar Securities Exchange cade. Practices that were good enough for to be able to get clear and trustworthy Centre Co., Ltd/Internet 2004 will not be good enough for 2014. numbers from the companies in which Many foreign competitors are ruthless he invests and ironclad contracts to bind

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What's In Stock.pmd 43 1/21/2014, 5:26 PM Feature

them to their agreements. Which private equity firms have suc- cessfully made the leap into Myanmar? This is very difficult to ascertain, as many dealings are pointedly clandestine. This was especially true up until last year, when the blanket of US and European sanc- tions was still in place. Also, any answer to this question is complicated by the defi- nition of “here”. Many investors have tar- geted investing in Myanmar by proxy – investing in firms listed in Singapore, for instance, but who conduct a significant amount of business in Myanmar. Yoma Strategic Holdings has been a darling of the frontier market finance hounds for this reason. Yoma is one of very few seemingly well-structured Myanmar com- panies which has managed to be listed on a foreign exchange. They accom- plished this via a reverse take-over ma- neuver in 2006. Hence, investors hungry to get into Myanmar have pushed the value of Yoma’s Singapore listed shares to implausible heights. Of the equity firms operating in Myanmar, there is a strong preference for staid Myanmar place-names. Bagan Capital. Andaman Capital. Mandalay Capi- tal. Like any good private equity firm, they Exchange Square in Central, Hong Kong/Dicehk-Flickr want to associate themselves with pow- erful and historic sounding presence. Those three firms are notable early pri- vate equity players, all with relatively com- parable compositions. Comparable in terms of staff size and overall fund objec- tives. In addition to these firms there are several others, as well as independent impact investors of various types. Indeed, Myanmar is awash with foreign capital “Many investors have targeted invest- searching for places to flow. Any some- what large company committed to clean ing in Myanmar by proxy – investing and transparent accounting standards, with proper corporate governance (i.e. in firms listed in Singapore, for in- board oversight) and with a profitable business strategy has the potential to tap stance, but who conduct a significant into this ocean of foreign capital. Unfortu- nately, few Myanmar companies are able amount of business in Myanmar.” to check all of those boxes. Regarding the Yangon Stock Ex- change, the government of Myanmar has

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What's In Stock.pmd 44 1/21/2014, 5:26 PM inspired confidence by proceeding rela- There are dozens of Myanmar compa- Yangon can one day become a finan- tively smoothing with the appropriate le- nies on the threshold of being “exchange- cial powerhouse of Southeast Asia, but do gal and technical steps required to launch worthy”. If they would view it as an op- not expect this to happen overnight. The the new securities exchange by late 2015. portunity to be seized, these companies best thing about the Yangon Stock Ex- The biggest difficultly will be in lining up could take the necessary steps to get listed change is the introspection it provokes. enough companies to list publicly. Accord- and to garner outside equity. However, Myanmar companies have been forced ing to someone involved in setting up the when it comes to deciding whether or to look at themselves in the mirror and new bourse, expectations are for about not to vest some ownership with outside realize their governance and accounting “five to 10 companies” to list on the new investors, I am not convinced Myanmar structures are not suited to international exchange within the first year of opera- companies value the potential capital in- standards. Cultural variation in business tion. This is an ambitious number com- jection enough to cede any control. Com- practice is fantastic, but company slush pared to Laos, but it is also not the sort of panies here prefer to keep power within funds and double bookkeeping – behav- number that irrationally exuberant inves- the family as much as possible. To be sure, iors like these belong in Myanmar’s past, tors are clamoring for. this is true in any country, it is just espe- not its future. A Things could transpire differently. cially true in Myanmar.

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What's In Stock.pmd 45 1/21/2014, 5:26 PM adv.pmd 11 1/21/2014, 7:01 PM adv.pmd 11 1/21/2014, 6:45 PM B2B Talk

We have entered 2014. The reforms of the new government during the period of more than two years gained satisfaction and support of the people. But there were also a lot of frustrations over them. Some say that the changing rate of economic sector is very sluggish. How the economic reforms of Myanmar will be manifested is also of paticular interest of everybody. Dr. Aung Tun Thet, an economist and economic advisor of the President, and the two successful busi- nessmen, U Thein Tun (Chairman, MGS Group of Companies) and Dr. Sai Sam Tun (Chairman, Loi Hein Co., Ltd. ) discuss and assess ‘The Trend of the Economy of Myanmar in 2014’.

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Talk-The Trend of the economy.pmd 48 1/21/2014, 5:43 PM Professor Dr. Aung Tun Thet : To Then, when it is held, U Thein Sein your hopes, expectations, chal- make the cover story different for will go there not as the President lenges and opportunities. January, the first month of 2014, I’ of Myanmar but as the ASEAN going to ask questions and talk with chairman. So 2014 is important for U Thein Tun : The policies laid down Sayagyi U Thein Tun and Saya us and there also will be our gen- and the tasks to be carried out by the Saing (Dr. Sai Sam Tun) , who have eral elections the next year. And government are good for the economic already appeared in the cover story we are also one of the member development in 2014. But however good of B2B Magazine. So the selected nations of AEC (ASEAN Economic the schemes are, people are required to title is ‘The Trend of the Economy Community). So first and foremost, implement them. Only when they carry of Myanmar in 2014’. Both of you could you tell me about your eco- out the tasks well and clearly, will suc- are the ones who are doing busi- nomic assessment or economic cess be achieved. Now the government is ness well. As you know, Myanmar’s forecasting of 2014. In fact, it seems laying down policies to alleviate poverty. ASEAN chairmanship begins in like telling our fortune. But as both Then they begin to carry out small and 2014. More unusual is that this of you are well versed in business medium industry development. Then it is year’s G-20 summit will be held in and you have many years of expe- also found that agriculture sector devel- Australia with this chairmanship. rience, I’d like you to tell me about opment is being carried out with zeal.

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Talk-The Trend of the economy.pmd 49 1/21/2014, 5:41 PM B2B Talk

Another point is that when rural area development is carried out, the data to carry out the development of the nation with international strength are fine. But though we have these challenges,when we perform poverty alleviation, we per- form microfinance. Microfinance is good for regional development. But there’s one thing we have to overcome. It’s hna- lone,thone-lone (2-digits & 3-digits) as our citizens are saying as a slang. How will the government prevent them? ‘How to eradicate it’ is critical. If we don’t do it, the money disbursed for the development of the people in the rural areas will be wasted in gambling and the development activities won’t be effective. The policies laid down by the government are good but we must be cautious in such things. The next is small and medium enterprise industry. It’s a very suitable thing for us. However in our country, it is neces- sary to implement a national master plan only after an international organization thoroughly conducted a feasibility study. If it cannot be done, there are a lot of barriers to the activities of the country. There is infrastructure. There is resource problem. There is a lack of new technol- ogy. Besides overcoming the barriers, as- sessment must be made on the basis of what projects or small and medium in- dustry are feasible and how they will be run whether they are permitted long term or short term. Why? If we set up a project without carrying out a feasibility study, we will have difficulties to proceed. It is nec- essary to change these things. Dr. Sai Sam Tun But the policies laid down by the gov- ernment are good. Then to bring national reconciliation to the fore is the most im- portant. It is essential. It is worse than sacrifices, we will reach our desired des- an economist to make comments. I’m just the barriers we talked about previously. tination soon, isn’t it Saya Sai? an entrepreneur. Most people may not To what extent can we reconstruct na- agree with my comments. I’m making com- tional reconciliation seriously? The trend Professor Dr. Aung Tun Thet ::: ments with my own view and own of 2014 is good. However, in improving Sayagyi U TheinTun has talked thought, sir. When the trend of 2014 is the good foundations, prime basic facts about both challenges and oppor- asked as you have asked, I’d like to say must be revised. Then there are patrio- tunities. What’s your opinion, Saya that there is no other country in the world tism, the love for one’s own race and the Sai? whose trend is as good as ours. The rea- will to make sacrifices. If the political par- son why I’m talking about this trend is ties move forward with the mind to make Dr Sai Sam Tun: As for me , I’m not that if the 600 million people of ASEAN,

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Talk-The Trend of the economy.pmd 50 1/21/2014, 5:42 PM more than a billion people of China and Whoever is taking power, what is seen size of Yangon. The final and fourth more than a billion people of India are from the economic point of view is the point is the thing you said earlier. combined, half the population of the world way the economic model is made. How It’s reconnecting to globalization as is in our vicinity. No other country in the will this economy be managed? If a leader ours is a nation that disconnected world has such an opportunity or chance. who can manage business with courage many things. In this 2014, there’s Then when we look at our population emerges, these opportunities will be one thing we always talk about. distribution, it is found that old people are changed into realities and Myanmar will We need ‘action’ but not ‘talk’. As not very many and young people of work- become a tiger in the next 10 or 15 or 20 we need ‘action’, I’d like both of ing age are abundant. I think it’s the sec- years. It’s my point of view. you to discuss the FDI of 2014 a ond most important point in our trend. little. It’s because local saving is If we look at the population of Japan, Professor Dr. Aung Tun Thet : Of inadequate to jump-start the it is bulging at the top. The number of old the two of you, Sayagyi U Thein economy. So it’s FDI. The State people is large and there is not enough Tun talked about the challenges and Government is also in need of FDI. working force. As it lacks working force, Saya Sai talked about the trends. So the advice I want from two of all of the economy of the nation has to If we look at McKinsey report, its you is what kind of FDI you ex- feed the old age. The third point is that it estimation is found to be as far as pect. To say it actually I’m not very is for 50 years that the door of our coun- 2030. Concerning 2030, the point satisfied with the inflow of FDI. The try has been closed. The door is now they gave is that if Myanmar wants inflow is slow. And it also seems opened and we are in everyone’s inter- to grasp the opportunity you said sluggish. So could you please dis- est. As we can attract everyone’s interest, it must shift to ‘digital leap cuss it a little? I think there are opportunities for our frogging’. It must shift to technol- country. Next, it can be said that plenty of ogy. Next, the economic structure U Thein Tun : Previously you asked natural resources still remain.They are in you said previously must shift from whether we can shift to service industry. large quantities. Especially oil and gas still being largely based on agriculture Of course we can. But there will be diffi- remain plentiful. When opportunities are to industrialization. Some countries culties as we are facing the human re- talked about, there are only opportuni- shift to service only after these source problem at present. There’s also ties. Who are doing things? changes. What they advise is shift- another problem. To shift to it, we must What we want today is a very strong ing from ‘A’ to ‘I’. Isn’t it possible change our education system. Another leader. A leader who can lay down a good to shift directly from ‘A’ to ‘S’ in- problem is to change the attitudes of economic model or a good economic policy stead of shifting from ‘I’ to ‘S’ ? people. We must move forward with the is required. So everybody knows that ex- The next point they talked about consciousness of building a prestigious isting leaders are descended from the as No. 3 is urbanization. social structure. It’s because as service in- armed forces. It’s impossible to gain full Regarding what you said pre- dustry provides service, reputation is re- democracy and to elect only civilians as viously, besides the increase of the quired. As quality is imperfect, what we parliament members at once. If we look population of young people, they often talk about is to build a prestigious at Indonesia, it will be found that the army estimated that 54 percent of the social structure. Only then will we be able is still taking power to a certain extent. GDP will be urban later, twice the to go on a desired journey. When we

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build a prestigious social structure, basic facts must be taught at schools. It will be possible only when they are taught at schools. If we cannot change what is built at that time, our citizens will have no ideas. If so, the society will be worthless and everything will be hard to go on a de- sired journey. I say it according to my age and experience. Well, if we talk about FDI, it is also the same. If it is extended, there is economic potential. If we try to define what are in that potential, the cri- teria we have to lay down are many. The first one is the local human resource prob- lems. Our indigenous people have to hire foreigners. If there are no such people, we have to hire expatriates. Why? People from stock markets in internal organiza- tions cannot do it. Then, regarding finan- cial system, exchange rate still needs con- firmation. Such things still exist. Some things are under dedicated laws and some things are not. Moreover, to say sim- ply rather than saying as a politician, as internal politics still provides food for thought, it is sometimes included in the causes of slow FDI. So, as we said before, national reconciliation is required. We must move forward with comprehensive sta- bility. When we move forward compre- hensively, as I very often say, we will be able to build a prestigious social structure only when we have the way of thinking that the nation is the first, the people the second, the government the third, one’s own party the fourth and one’s own in- terest the fifth. If we can’t build it, it will take a very long time to change it again, isn’t it,Saya Sai? Professor Dr. Aung Tun Thet

Professor Dr. Aung Tun Thet ::: Could you please tell me a little at this time of the need, we are badly in flow of FDI, we must see and compare more about FDI, as you yourself are need of capital money. When the door our FDI law with those of Thailand and welcoming FDI, Saya Sai? was opened at a place where FDI was Vietnam. Our FDI law, which came out essential, a large number of foreigners last must be good. It must have incen- Dr Sai Sam Tun: FDI is essential for came in. There were those who came and tives. It’s essential for FDI, I think. When us. It’s hard to found a new nation with- saw. There were those who listened to they came in and see things, it is found out FDI. So nobody can deny the fact that what we explained to them. Then there that our FDI law came out late and it is we need enormous amount of foreign ex- were those who went back home and indefinite. The second point is that our change. This country of ours, which was there were also those who came in. So, property price is skyrocketing for the in- blocked for 50 years, needs all things. So from my point of view, regarding the in- flow of FDI-s. It is very costly for a for-

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Talk-The Trend of the economy.pmd 52 1/21/2014, 5:42 PM eigner or a large company to stay in When I listen to what you are say- tablishes it with their own policies. Which Myanmar. Next, if the price of land is so ing, I remember political economy, country’s model will we get? Will we get high when FDI-s came in and make in- a subject we were allowed to learn South Korea’s model or that of Indone- vestments and the price falls by half after in economics. Economy and poli- sia? After getting one of the models and 5 0r 10 years, it will not be worthwhile tics are inseparable. Though I establishing the basis, we will need to for them to come here. That’s why FDI-s meant to base the talk on economy construct on it. The next problem we find don’t come in as much as they should. when you two discuss, when I lis- is our being the last frontier. The second They will come in some day or in some ten what you are saying, it is found point is Mongolia. Mongolia is a large fron- way. The economy of our country won’t that talking about economy only is tier. So we will need to get a model of a stand still. It will surely develop. I think not enough. It must be related to country. In getting so, what we consider the present sluggishness may be related politics. Let’s say it’s political is the need to see national interest. Na- to political uncertainty as Saya U Thein economy, Saya. Economy can tions open their doors. As there are re- Tun has said. All the indigenous people change depending on politics or quirements in the ways of opening in the interpret the meaning. Are all the three vice versa. So, as both of you are economy, our indigenous people should or four leaders of the nation united? Are talking about 2015 election and the enjoy reasonable benefits of the economic they going to live, speak and work unit- revision of the State Constitution, development form, presence of resources edly. Are they going to safeguard the in- many people are also talking about, and opportunities of the other country. If terests of the nation or the interests of writing about and making remarks we don’t gain these benefits and the op- their own? The foreigners will interpret on it though it’s still a long time portunities of economic development ac- the meaning the way we do. Then, all of ahead. What are your opinions tivities we carry out reach into the hands us also consider, ask about and expect about it from the point of view of of foreigners, we tend to become politi- the forthcoming general elections of 2015. political economy, the point of view cal culprits.

Where are we going? Most people don’t of economy and politics which is Indonesia was opened. As the speed find it clearly and sharply. Is the State not pure politics? It is also impos- was high, the problem was that the own- Constitution going to be amended or not? sible without including the unity of ership of the country fell into the hands We also don’t know it exactly. What will indigenous people you said before. of foreigners. The indigenous people didn’t happen if it is amended or not? Foreign- gain benefits as much as they should. It ers ask this question whenever they meet U Thein Tun : Before talking from the was also the same in Malaysia. About ten us. The FDI you ask and talk about is an political economic point of view, as Saya percent of the population has become the essential thing for us. We need to pre- Sai said earlier, when the leader whose owners of most of the nation’s wealth in pare the things which should be done. name I don’t want to mention brings about Indonesia. What a tragic incident ! Not That’s all. national reconciliation, our government only Malaysia but also Philippines and needs to get a model of a country as In- Thailand have faced the same problem. Professor Dr. Aung Tun Thet : Well. donesia, South Korea, Cambodia, etc es- It is said that there’s a problem in politi-

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cal economy. But politicians talk about to ruin mingled with things such as position. The poor are suffering while politics. They also talk about power, pro- karaoke by the capitalist theory. I’m say- nothing happens to the rich minority. So duction, resources and all others. But they ing the words of an elderly person as we observe ‘flat follow trade’. If economic don’t consider ownership. In the capital- we are age-old people. Now we are in a development is carried out speedily and istic theories, ownership is considered. situation in which we even don’t know steadfastly in unity, the best results will That ownership has been carried con- where our culture will be brought and be produced for the country. In the imple- tinuously by the capitalism until our local where its destination will be, Saya. mentation, we need capital. To make my people are driven out to the foot of the company large, I must seek capital. It’s mountains or rural areas. In essence, such Professor Dr. Aung Tun Thet : Saya finding loans. In our country, we should incidents can be found if FDI is applied Sai. Could you please discuss po- take out loans amounting to a hundred in a wrong way. So, serious consideration litical economics from the aspect billion as capital whether they are from is required when we consider the ben- of indigenous people as you your- IMF or ADB or the World Bank. Whether efits of our indigenous people. But we are self are one of the indigenous we have to lobby for the qualification or increasing our speed. It may take five people, Saya? whatever, we should borrow the capital years. No problem. But when wealth shar- money of about a hundred billion. If pos- ing is made, the nationals must enjoy it. Dr Sai Sam Tun: As you asked ear- sible, borrow with courage. The interest Maybe I’m a little nationalistic. I’m just lier, politics and economy are related. rate is very low. We won’t go bankrupt. saying simply. It’s because there are side Though they are inseparable, what we Infrastructure should be improved where effects. There are Indonesian side effects observe is ‘flat follow trade’, Economy No.1. necessary. Infrastructure includes roads, and Malaysian side effects. Thai side ef- I assume that if we can implement the electricity and all others. If infrastructure fects are worse than theirs. So I’d like development of our economy, the prob- improves, the poor people earning a dol- you all to consider this case seriously. lems we have to face will be the second lar now will earn ten dollars and the Where will political economy go in such stage. Disputes among the leaders of the number of our middle class will increase. a serious consideration? But I’m also con- nations will exist in the future too. If there Our present middle class numbers only sidering it. We need to analyze owner- are disputes after we gain wealth, our two million. Thailand has 25 million. High ship. In doing so, the politicians are talk- people will be able to endure them. I think spending power indirectly attracts FDI too. ing just about politics. They’re going to making ourselves wealthy is more impor- If we want FDI, we must have good in- capitalist theory. Where does the capital- tant. Then how will we do to gain wealth? frastructure. For that we need loans. We ist theory bring our indigenous people? You are also serving as a consultant. If a want to urge not to fear loans. My com- Nowadays we are talking about it. The policy of a nation is too hasty it is not pany became large because of loans too. capitalist theory has brought Bhutan to appropriate. But if it is too sluggish, we Then I promptly repaid all of them in the total destruction of its culture. A na- can’t endure it. We will expire. In our four or five years. My first priority is tion of cultural essence has been brought opinion, we are now in a very critical economy. I think the second priority

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Talk-The Trend of the economy.pmd 54 1/21/2014, 5:42 PM tor. It is B2B here. As it is said joint ventures will be carried out with real businessmen, it coincides with what you said, Saya. They also say these aids, loans and grants are for infrastructure. All telecom- munication, road, electricity must be done. But they are for the de- velopment of private sector. So there’s one thing I really want to ask you. Both of you are the ones who are actually working for the private sector development. When we met one another for the cover story of B2B, the word used by Sayagyi U TheinTun is the term which is not heard in the journals or on the radio or in the media. It’s the word ‘capitalism’. In their talks, they are hiding this word ‘capitalism’ because of the shadow of socialism. They are saying it’s market economy. In fact, market economy is capitalism. I don’t know why this word is not used. Sayagyi U TheinTun used this word and I’m also using it. But, the word ‘capi- talism’ is not seriously used out- side this room in the media. Instead of saying implementa- tion of capitalism, an interchange- able term ‘market economy’ is used. That’s why I want to ask a little. Now there’s a word I want to use to increase private sector - in other words- to increase capitalism. If the U Thein Tun words both of you said are sum- marized, it’s ‘wealth creation’ in- stead of ‘poverty reduction’. How which is critical in our country is also nese also have their missions of will we make people rich? To re- economy. I say so as you asked politics loans, aids and grants. They are duce poverty of the people, afore- and economy in relation. through IMF, World Bank, ADB, etc. said loans, aids and grants are car- When they make assessment, they ried out by the government. Both Professor Dr... Aung Tun Thet : If I found that Myanmar is unusual. of you, from the private sector are have to review the discussions of Previously, developing countries got the ones who can create wealth. both of you, I remember the recent aids, loans and grants first and only Poverty reduction is the political visit of the Japanese. As you said then the FDI followed. But in duty as well as the social duty of there are loans, aids and grants in Myanmar they are found to be at the State Government. As it is per- government to government, G2G. the same time. When the Japanese formed through G2G, you also have So, get these three for infrastruc- offer aids, loans and grants, they to perform this duty from the pri- ture as both of you said. The Japa- are from the Japanese private sec- vate sector. So I’d like to request a

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suggestion from you. Could you Well, if we see small and medium in- necessary to set it systematically. Only please advise me how to develop dustry, we must have a master plan. For those who really realize international or- and improve the system which can which sector? Is it value-added? Is it ser- ganizations must do it. ADB or the World be frankly called ‘capitalism’ in vices industry or hotel industry? Is it non- Bank? Help us with a master plan. Take 2014, Saya? progressive industry? It’s because we our- this or that sector and do it. We’ll see it. selves have to differentiate non-progres- We can govern the country with this U Thein Tun : In fact, market economy master plan in our hand. Let’s say Saya is capitalism. It cannot be denied. What Sai hires foreigners. We also hire them. we formerly learnt was Marxist theory If we move forward For example, we draw up an AOP (An- ‘Capital’. ‘Working class’ we called is in- without gaining nual Operation Plan). And we draw up a terpreted by capitalism as ‘labour’. But a standard operation procedure. We con- problem we have is that the gap between national reconciliation, duct analysis of key performance indica- the rich and the poor is very large. Only tor. We govern it by seeing whether the when this gap is adjusted gradually, will there is no barrier performance is 85 percent or 90 percent people and the rural regions develop as according to the KPI. That’s the work of Saya Sai said. But in capitalism, the gov- as big as this one. CEO. But people here, directors general ernment must undertake the develop- Make a sacrifice for or operators, have no key performance ment and prosperity of its indigenous indicator system. people. They must become indigenous national reconciliation There’s no standard operation pro- capitalists. With money, leaders of a na- cedure here. If there’s SOP and analysis tion make their nation prosper and de- if you really love the of SOP is conducted and it is found that velop. It is done so in every country. South they don’t perform 85 percent, fire them Korea also did it in the same way as Saya nation. I’m sure we all. Do it only when performance is 85 Sai said. They did all things including will reach our percent. Fire if it isn’t so. Well, as we are infrastructure with loans from around the in our first year, if they can’t do it, fire world. Deng Xiaoping implemented hu- desired destination. them in the second year. If we do so, man development first before doing it. He people will improve. Then indigenous built infrastructure and all other things. So it’s critical. people need to be united. Saya Sai and I After doing these things, they began to be are not competitors. A dignified commu- better and he began to adopt reforma- nity with the spirit of “We have to grow tion. Five hundred thousand people were sive industry from progressive industry. up together” must nurture these things. sent and half of them didn’t return. No Don’t do things vertically. We must have We must have “high way of thinking”. We problem. Half of them will return. Where a master plan. If things are done in ac- must have positive view. Most of our will infrastructure start? It was started in cordance with a master plan, it will be Myanmar people have negative views. the south. But at that time he didn’t do it possible to bring up capitalists gradually. They have celebrity life and entertainment with the State-owned money of his coun- In our former times, there were no cro- life. The same is in India too. It seems 60 try. He did it with the money of other nies. It’s because the government consid- million among 1.3 billion are 60 million countries. We need to consider these ex- ered all things equally. If I am going to in Myanmar. They like entertainment. amples. What must we do when we con- produce longyis ( nether garments), They mortgage their scales (an instrument sider them? We have done such a thing longyi producers are gathered. How of their trade) here. They mortgage their during the time of parliamentary many longy is have been produced yet? market. Things are happening so. The (A.F.P.F.L.) government. How much money If your longy is are non-progressive, don’t government should do it for the develop- do you need as you said earlier, Saya Sai? produce them. Produce shirts. Industry ment of our people. I’ll say if necessary. If you need US$50 million, put it up to development officers assisted necessary It’s the thing I’ve said repeatedly. Give national planning. Whether your project things. So to make the economic devel- the sovereign guarantee of the State. I is feasible or not can be known if it is opment of the middle class and above think if we do it, foreigners will increase fitted into the master plan of the national possible, the government must build it very promptly. development of the State. It is because systematically. If it doesn’t happen so, the we have the whole master plan. Then money will go to unnecessary investments Dr Sai Sam Tun: Capitalist or busi- do we have a master plan ready? We and it will become unproductive. Then this nessman or wealthy person, whatever must see it. vicious cycle will surely repeat itself. It is name I call, it is found that only the capi-

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Talk-The Trend of the economy.pmd 56 1/21/2014, 5:43 PM of this talk will be 2014 dream. Could you please tell me about your individual dreams?

U Thein Tun : I’ve already told you about it and so has Saya Sai. We frankly said it’s the big leader. Whether it’s 2014 or 2015, national reconciliation is critical. If we move forward without gaining na- tional reconciliation, there is no barrier as big as this one. Make a sacrifice for national reconciliation if you really love the nation. I’m sure we will reach our desired destination. So it’s critical. I said it earlier. If you’re poor, try to know about the rich. It’s the theory of 80/20 I said before. As you try to know about the rich when you are poor, try to realize the lives of the poor when you become rich. If you try in both lives, life will be in harmony. So , that’s all, Saya.

Dr Sai Sam Tun: As for me, regarding 2014, the destiny of Myanmar is sure to talists take the lead and make a nation power increases, domestic market will be favourable. When we work in the eco- beautiful and developed. We have already increase too. If it happens so, everybody nomic field, the economy must surly move had an experience. Though we gathered will cast covetous eyes at that domestic despite various political problems. It can- proletariat class and shouted” We are market. Coca Cola cast covetous eyes at it not be stopped. Perhaps it will move communists”, and “ We are socialists”, it and so does Nestle. And Unilever does gradually. We are facing towards the resulted nothing. However, this system has the same. It needs to create a large mar- bright side anyway and our nation is fac- taken place gradually. The main natural ket. So from my point of view, capitalists ing towards a rich nation, I presume. My law is nothing but 80/20 principle. The or businessmen or wealthy people, what- own company is also developing about 80 percent of the wealth of our country ever they are called, they are required. 50 percent every year. The nation cannot goes to the 20 percent of our people at These people create not only beauty of be stopped either. There will be political last. The 80 percent of the people own the world but also jobs. It’s my opinion. differences. There will be other minority only 20 percent of the nation’s wealth. It problems too. But our economy will move forward. 2014 will be good. 2015 will be happens in all countries. It happens so in Professor Dr... Aung Tun Thet: So, good. And I believe it will be good continuously. Thailand and it’s the same in Indonesia. the last thing is the prediction about America also has no difference. Our de- 2014, Saya. If the prediction of both Professor Dr... Aung Tun Thet : Well, sire to equalize this stuff is just a fantasy. of you is the development of the Professor Dr.. Aung Tun Thet : Well, thank you, Sayagyi U Thein Tun What I mean is to encourage private nation, it is needed to encourage, thank you, Sayagyi U Thein Tun and Saya Sai for giving me the sector. Bring up many wealthy people. cultivate and nurture capitalism, and Saya Sai for giving me the chance to discuss on the cover story Bring up many businessmen. They won’t market economy and businessmen. chance to discuss on the cover story today. All the national people will stand still. As everybody knows, money The role of State Government is today. All the national people will surely be very pleased if they hear cannot be brought when one dies. So it the creator who enables the busi- surely be very pleased if they hear your final words. There must be will be invested in production sector. Fac- nessmen to work. They don’t take your final words. There must be positive thinking in our country. All tories and mills will be established. People the role of facilities team. The role positive thinking in our country. All must think to be good. Let me con- will get jobs and their salaries will in- of the State and the role of the must think to be good. Let me con- clude the talk, praying for not only crease gradually if he gets rich. If all our private sector must be differenti- clude the talk, praying for not only 2014 but also beyond 2014 and then people earn ten dollars a day, our spend- ated. Both of you talked about the 2014 but also beyond 2014 and then beyond 2015... A ing power will increase. As the spending differentiation. Then the last words beyond 2015..

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The way those working the peace process seemed to be growing wealthier day by day while the suffering of the grass root citizens is becoming more acute day by day, makes another thought explode in the mind. Do they all sincerely intend to stop this civil war or milk the most benefit they can by prolonging the process? By Naing Thit

he current events in Myanmar ordinary infantry soldier in the monumen- By the time the younger brother ar- make me remember a short story tal war machinery, his allotment was a rived it was almost evening. An army jeep TI read about 30 years ago. It was room in the family barracks and a salary sped into the barrack compound and a story set in the late 1950s, when just enough to cover his basic needs but squealed to a stop in front of the elder Myanmar in its first tremulous decade of not much more. How to accommodate his brother's home. civil war, was trying to recuperate by rogue brother, find him employment, help The younger brother already a little courting peace. The main characters in him adjust to his new life, provide him high due to the drinks at the welcoming the story were two brothers. Both ser- some money so he would be able to en- ceremony held by various peace organi- vicemen, the younger had mutinied with joy the urbanite life that he has missed zations, rushed into the room embraced his regiment and joined the insurrection for so long. Come to think of it, that had elder brother and sister-in-law; casted a and gone underground, while the elder even become a luxury they themselves glance around the room promised them had remained loyal to the government. can hardly enjoy. he will help them out of their drudgery Now, taking advantage of the armistice Then, came the day of the returnee's told them that he has been granted rights and pardon granted by the government arrival. The elder brother and his wife to a number of work sites and guaran- the younger was returning into the fold. waited anxiously all day long with a teed a sufficient amount of loan from the The elder brother and his wife, in simple welcoming meal they could pro- government. Then, he was off like a whirl their dire circumstance, worried how they vide; pork curry, savoury green soup, fish wind shouting over his shoulder that, cur- could put up with this prodigal ‘son', who syrup and salad without dressing. They rently he will be going to the apartment had certainly been a prodigal one, as well imagined how after all that starving in provided for him and he would contact as the black sheep of the family. As an the jungle he would hungrily devour it. them as soon as he could and to top that

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Currently the most-NaingThit.pmd 60 1/21/2014, 5:28 PM off he threw a roll of banknotes to his conflict appears? hailed and the loyal are throden, one brother to use as small money. About 300 years ago, in lower main matter needs to be spat-lighted. And The elder brother and his wife were Myanmar on his coronation day, the Mon that is, that the previous government that left gawking at the back of the fast reced- King Yaza Diyi asked a lesser city-state saw so much discontent was bad, a thing ing jeep which carried away their new king who had come to pay homage to that no good person need be loyal to. saviour. him, why had he not joined forces with And here comes the worst part of this And the reader could feel, share the him when he had been mobilizing an dilemma. The people have every reason feeling in the elder brother's mind, ''If the army to dethrone the former king. to see the same image of the previous end result is going to be like this the next regime whenever they cast a glance at one to rebel will be me!'' these unchanged facade in front of them. That emotion has transcended, it can The change is in name only. So how could be said, with all the decades of Myanmar's The people have ev- the people believe this government is our internal conflict into this current political government even if they try hard as they arena. The top news in recent media is ery reason to see the can. In short it can be said that the present the activities of the peace formulating government has blurred the eye sight of groups. same image of the the people with undisciplined actions. Each and every antagonist has been In the afore-mentioned Mon city state lured to the negotiation table with a bevy previous regime and in the same era, during a battle a of miscellaneous deeds. How much the number of officers were captured. The lord recipients will profit by reselling the 3,000 whenever they cast a of the city made an offer, ‘Your vow of some partly some fully tax exempted loyalty or life'. ‘Our hearts are full of loy- brand new cars and how hard the people glance at these un- alty to our king. There is no place for you will suffer from this helter-skelter ar- to enter'. The chief officer replied bravely. rangement by the government is the talk changed facade in The lord of the city had them thrown of the town at the moment. into prison for ten days without food. But what makes the matter more front of them. The When they crawled out ten days later monumental is a news article that focuses starved almost to death the hungrily de- on the return of a famous dissident. A change is in name voured the food laid before them and descendant of the last king of Myanmar contently drank the death water they and a minister in the expatriate govern- only. So how could were told to drink. ment, the Linn Pinn Minn Tha, is sup- From that episode it can be concluded posed to have been offered various ben- the people believe that loyalty in reality is not much more efits. Like him, there were also most than a ball of bio-mess stuffed in the stom- known dissidents who were crafty this government is ach. But the way the Myanmar peace enough to reconcile with the present re- process is being handled may make a lot gime. our government of people see a chance to make use of it The way the government is handling and the current turmoils that can be seen the peace process, the way it has been even if they try hard all over the country may be the harbin- playing Santa Clause with the public ger. money, the way those working the peace as they can. The current era has exhibited that process seemed to be growing wealthier being not just bad, but being hugely bad day by day while the suffering of the grass has been profitable and still is profitable. root citizens is becoming more acute day He replied that he had stayed loyal And quite a lot have noticed it. The crimes by day, makes another thought explode to the throne because by siding every and rampant all over the country is solid proof. in the mind. Do they all sincerely intend any instigator one will lose sight of righ- And taking cue from the ways wheeling to stop this civil war or milk the most teousness. And he hinted that joining with and dealing are made in the political field benefit they can by prolonging the pro- one and all upsurger could he viewed by of peace is so mouth watering. I believe cess? progeny as a model deed and if followed in a very short time we are going to have Will the spectators within the citizens would be the destruction of king and a new breed of insurgents. view it as a blessing if and when and by country. The government has shown going the time the means to really pacify the But when, as now the disloyal are against the government is so profitable. A

ACUMEN ⏐ 61

Currently the most-NaingThit.pmd 61 1/21/2014, 5:28 PM Interview

Hana Becickova Country Economist, Mantis

In order to develop in financial sector and to attract Foreign Direct Investment into the country, exchange rate needs to be stable and inflation must be under control. On the other hand, data research and views of international financial organizations on Myanmar currency are helpful and conducive to the development of stock exchange market. For this month, we provide points of view of the Mantis, a company based in the Netherlands, which provides expert research and risk quantification services in frontier and emerging markets. We believe that it’s worth looking at its views. Please briefly explain about Man- and the Mantis baseline. pushing the envelope of quantitative tis and its activities. From a development angle, by pro- analysis in the countries we cover. Mantis helps investors and corporate viding potential investors with a concise clients in developing their business in outlook of the economy, Mantis hopes to Is there any investment from Man- frontier and emerging markets. We contribute to lower the risk premium tis in Myanmar? If yes, then in what achieve that by supporting their capabili- charged by investors, increase markets’ field? ties to assess risks and underlying risk efficiency and boost growth in frontier Mantis has deployed resources into factors. Mantis provides continuous data markets. improving the understanding of macro- updates, has five dedicated teams of top Our economists have a strong under- economic risks in Myanmar. We have quantitative economists and modelers to standing of the economies of the coun- implemented the FPAS for Myanmar’s interpret developments in the individual tries they are covering. With our model- economy earlier in 2013. Since then, we economies and prepare baseline forecasts. based Forecasting and Policy Analysis have been providing our clients with Mantis has recently developed scenario System (FPAS), we currently cover 24 quantitative assessments of financial and builder software which allows its user to countries and continuously work to ex- economic risks, which they apply in their develop their own macroeconomic sce- pand our geographical coverage and decision-making and investment manage- narios based on their own assumptions make sure that our techniques keep on ment.

62 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Interview with Hanna.pmd 62 1/22/2014, 5:34 PM thorities to try to minimize this uncertainty purpose of the conference and what So what is your projection for as soon as possible. Moreover, numerous does TCX do? Myanmar’s economy? initiatives of technical assistance to TCX organized the conference in part- The liberalization of the foreign cur- Myanmar’s authorities have been nership with LIFT and UNCDF to discuss rency regime and the unfolding of the launched already and hence we expect the current challenges and opportunities broad-based transformation process have the data quality and availability to be soon in Myanmar and its stance to foreign in- led to a sizable depreciation in both nomi- substantially improved. vestment. The conference had a focus on nal and real terms. We believe that this the financial sector as most of TCX’s share- depreciation has already brought the kyat Mantis is currently based in holders present during the conference close to its equilibrium value and we hence Amsterdam, Netherlands - are you were development finance institutions project it to remain largely stable. On ac- planning to establish offices in and microfinance investment funds. count of the recent depreciation and high Myanmar as well? The primary role of TCX is to offer local demand, we forecast inflation to con- No, so far we do not plan to establish financial instruments that enable its in- tinue increasing this year. offices in Myanmar. However, we im- vestors and the clients of these latter to Moreover, the gradual opening of the prove the behavior and strength of our hedge their foreign exchange exposure economy has led to substantial investment generated from cross-border investments. inflows and a boost to trade. Going for- the gradual opening of By definition, foreign direct investments ward, we expect these flows to remain (FDI) come from investors having estab- robust and constitute important drivers of the economy has led to lished a financial base in hard currency economic growth, which will remain substantial investment which ineluctably expose them to cur- around seven percent over the next four rency risk whenever they operate in an years. inflows and a boost to economy where their source of business trade. Going forward, is denominated in local currency. In that Does Myanmar’s ongoing transition respect, Mantis plays an important role pose any particular challenges for we expect these flows as TCX relies on the technology devel- your projections? to remain robust and oped by Mantis to assess the risk pre- The complexity of Myanmar’s socio- mium it prices to its investors to bear the economic transition process entails large constitute important FX risk. uncertainties. For example, the transfor- drivers of economic mation of state enterprises, the liberaliza- So what were the major challenges tion of the financial market, and the re- growth, which will re- identified during the conference? strictions on government borrowing from main around seven per- Can they be somehow tackled by the central bank have the potential to the foreign investors? destabilize the economy and lead to a cent over the next four According to Jerome Pirouz, Vice weakening of the kyat if not conducted President at TCX, the conference partici- well. years. pants and TCX’s shareholders have Moreover, since our approach is to a models by visiting the countries we cover pointed out the regulatory and currency large extent data-driven, reliable and up- and discussing our approach with the risk as key risks for foreign investors. In to-date data are important for our projec- local authorities. I visited Myanmar in the case of the regulatory framework, this tions. Unfortunately, two decades of strong November 2013 where I had the oppor- is not so much the enacted laws that pose trade restrictions and other non-market- tunity to discuss our assumptions with a an issue but rather the lack of them due based measures in Myanmar resulted in number of stakeholders and policy-mak- to the structural changes that Myanmar is misleading historical data of low quality ers, therefore consolidating our projections currently undergoing. and availability that hamper unbiased about the country’s performance and re- Although TCX cannot do anything vis- analysis. Although the data issues do not ducing uncertainty. I am looking forward à-vis of the regulatory risk, the Fund can point to a risk in any specific direction, to maintaining and deepening these con- monetize FX risk and offer a way out to they increase the forecast uncertainty in tacts this year and hope to return soon. foreign investors who can hedge their general. As increased uncertainty about foreign exchange exposure with TCX. By Myanmar’s future development pushes up During your visit in Myanmar, you transferring part of the risks, the compa- the return that investors require on their have also participated at a confer- nies can then focus on the numerous other investment in the country, I believe it con- ence organized by the Currency Ex- challenges they will face while seizing the stitutes a good incentive for the local au- change Fund (TCX) - what was the opportunities Myanmar has to offer. A ACUMEN ⏐ 63

Interview with Hanna.pmd 63 1/22/2014, 5:34 PM CultureCulture

Since last February 2013, Thailand and Of 30,000 captives arriving Angwa, a like painting, sculpture, music or writing Myanmar scholars have been undertak- Thai King was among them. They were etc. were settled near the court. ing a herculean task of excavating what warmly received and taken care of by Artisans like carpenters and fire-work- seems to be the remains of Chaofa the Myanmar high officials at the court of ers are settled away from the city. Utumporn. The scholars are enthusiastic Ava. Thai royal court ladies and their Others were settled at distant areas with a full hope and energy to recover slaves were given comfortable shelters and their descendants - village-elders still the remains of the last King of Ayutthaya. within the inner court. Princes and their speak oral histories of their ancestry. He had been brought here by slaves were given shelters outside it but (Please read Is Phalangan a Thai Village? Myanmar at the Fall of Ayutthaya on 6 within the fort and the rest outside it. The ‘‘‘ ACUMEN Magazine’ September 2013 April 1767. With prisoners escorted from Myanmar King had ordered to see com- p.64-69) Ayutthaya, Myanmar soldiers came back forts to all of them. The Thai families were given lands home crossing rivers, forests, and over Later they were all sent to settle in com- about 18 miles north of Ava. These were the mountains. There was a lot of hard- munities or villages of their own. found along a canal (Shwe-ta-chaung) and ship, exhaustion, diseases, starvation and Artistes or skilled performers like mu- they built sand pagodas in their vicinity. all sorts of troubles plus many untold sto- sical or theatrical entertainers were The Thai royal family was found as a com- ries to both the captors and the captives settled within the city. They had to serve munity and called by the Myanmar as and many fell on the way. It took over the Myanmar court as they served their “Min-tha-su” (Royal Family quarter). Later three months to arrive at Angwa (as the king at Ayutthaya. in the next reign, Great Arakan Imaged Thais called Ava at that time). Artists requiring skill in one of the arts, was housed in a fine temple just close to

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Culture-Thari Kings Treasure.pmd 64 1/21/2014, 5:52 PM this Royal Family quarter. In 1859 when Mandalay was founded by King Mindon, the community became an urban area. There were also other Thai communities along the Shwe-ta-chaung and each built a sand pagoda nearby. So now, although The Thais merged with the Myanmars and disappeared, their sand pagodas remain as a testimony of their origin. The Thai King was also given a large estate. His descendants moved away af- ter many years later. The estate was di- vided and changed hands. Daw Oo Zoon, the founder of Infirmary lodge (now at Mingoon, opposite Mandalay) finally bought and donated the last plot to a pri- mary school. This school now stands in Min-tha-su. (See Thai Descendants in Mandalay and Around by me, 2012) The Thai King was brought here as a monk. He went around visiting his Thai communities comforting them and preaching Dhamma to relieve their home Lord Buddha’s Son Rahula was cremated at Tavatimsa on top of mount sickness. Twenty nine years after the fall Meru. The long poles represent Mt.Menu. of Ayutthaya, “he went to the celestial abode.” He was cremated in “a way honored end of their life, were cremated with the at Amarapura according to a folded docu- to the sons of Lord Buddha.” same honor on a place representing Mt. ment preserved in colonial library, Lon- Rev. Rahula, the son of Buddha, went Meru. don. to Nibbana on top of Mount Meru. From His bones and ashes were believed In 1987, a brick Torana Cetiya (pillar) that time on, all Buddha disciples at the to be entombed in Lin Zin Kone cemetery, representing Mt. Meru was found in Lin Zin Kone cemetery. Old monks and folks living near it confirmed the said story. A hundred and two year old lady living near it, testified as she knows it since her childhood. There was no solid evidence yet but supportive evidences pin-pointed to the same site. So far, assisted by Myanmar scholars, the Thai scholars continued excavations and looked for any remains. Soon they dug up a cremation urn, dark brown glazed, decorated with gold and mosaic glass. It is 5.5 inches high and 8 inches wide. Pieces of monk robes and unburned bones were discovered inside. But there was no evidence suggestive of King Chaofa Utumporn. It was the bones of a celebrated monk, of course as indicated by the decorated urn, a buckle used by the monks and of course pieces of monk robe. ACUMEN ⏐ 65

Culture-Thari Kings Treasure.pmd 65 1/21/2014, 5:52 PM Culture

Although possibility of Thai Monk King could not be ruled out, there are other possibilities as well of a dozen Myanmar senior monks contemporary with him. However, the Thai team went on with more energy and determination. They cleared away bushes around in an effort to look for more evidence.

Stone Inscription house During mid August, 2013 a stone in- scription house was found outside of bushes. How many years had passed one can look at its damaged condition. Inside there was no stone inscription! Had some- one taken it away. No looters would care for heavy stone slab. There was no demand of this kind in black market. There was only a floor covered with de- bris. A worker swept away the debris

from the brick floor and it collapsed be- ○○○○○○○○○ traying a dark passage inside! The work- ○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○○ ers peeped down into it. (See a sketch) They saw nothing. But they did not at- tempt to go down. They were wise enough to anticipate dangers in caves or tunnels. Deadly fungus collected underground for years would wait to be breathed into lungs of the first intruders. Such was the case of Lord Canavon who financed to discover King Tutankhamun’s tomb of 18th dynasty, Egypt. He and his few friends died of mysterious death supposedly un- der a spell of curse. Later research and their chest X-rays helped confirmed of deadly fungus. Toxic carbon dioxide gas, or the air we breathe out, used to collect at lower level close to the ground in caves. In Java, a site known as death valley was full of animal bones. Forest animals going down into it immediately met with death be- cause of carbon dioxide poisoning. Such danger should be excluded here before going down into it. Small decoy treasure pots close to the corners of the inscription house were found looted already. It was a deliberate attempt to satisfy the looters from reach- ing main underground chamber, indicat- The floor collapsed betraying a dark underground pit

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Culture-Thari Kings Treasure.pmd 66 1/21/2014, 5:52 PM Supposed Underground Tunnel from Stone Inscription House

decided to dig into the second chamber, ing a possibility of hidden treasures. saved all more than 2000 art treasures Snakes might visit here through un- During mid and now the treasures are exhibited in derground burrows and coiled here to Chao Sam Phraya museum in Ayutthaya. strike the intruders. For years, the cem- August, 2013 a etery was a heaven for snakes, jungle cats, Thai King’s Treasure? alligators etc. Snakes big or small were stone inscription The Ratcha Burana story suggested a all daily visitors on the surface. The work- similar possibility here around the exca- ers had to fight with them every day. house was found vation site. There could be underground So head archeologist had to consider passages leading to cremation site and safety first. Nothing was done yet to go outside of bushes. the pillar chedi. (See sketch showing un- down and explore. derground passages) All underground tunnels were intrigu- How many years However, won over by curiosity, a co- ing passages unusual in Myanmar. Who operator Lin Lin dropped light and a cam- did this? When and why ? A series of era about nine feet down into the dark puzzling questions led people here to think had passed one chamber below in November 2013. To ev- about a treasure chamber! ‘Ratcha Burana’ ery one’s surprise, a pot (probably glazed) reminded them of treasures of immense can look at its decorated with glass mosaic and gold was value. discovered (See sketch). It was seen lean- Ratcha Burana was a well known damaged condition. ing against a brick wall. Is it a cremation Wat close to royal palace in Ayutthaya... pot? How long did it lie here until the King Boroma-tri Loka-nat II built a chedi Inside there was camera revealed it? Does it contain bones (a tall prang) and wat in 1424. Deep and ashes ? Then whose bones are they? down under the prang is a double cham- no stone The most puzzling question is where ber, the first being a decoy or deception are the treasures? Far in the interior or with some treasures to mislead the loot- inscription! hidden chambers? Is it possible ? These ers. questions will be answered with continu- Just before the fall of Ayutthaya in April ing excavations. 1767, two crows fight sent one to get im- chambers escaped from looting. After all, three ceramic urns were dis- paled at the spire of the prang. Ayutthaya In 1957 looters broke into the first covered already (See the sketch). The con- people regarded it a bad omen foretell- chamber and went away with some of tents and the expected treasures are very ing the fall of their royal city. When the treasures. Seizing them the Thai gov- interesting to both the scholars and read- Myanmar captured it, Wat Racha Burana ernment was able to get back some of ers. We have to wait the scholars’ inter- was destroyed by fire but the treasure the treasures. Then the Thai government pretation. A

ACUMEN ⏐ 67

Culture-Thari Kings Treasure.pmd 67 1/21/2014, 5:52 PM Travel

68 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Travel-Silent Beauty.pmd 68 1/22/2014, 5:36 PM I would like to share my experience of a (Victoria Point) and about 160 miles from boat will pick you all up to the island. It silent beautiful island with Andaman Re- Myeik (Mergui). takes one and half hours to island. The sort in Myanmar. It is the best place if The island is not only for recreation speedboat picks the visitors two times in someone is looking for a holiday hangout but also an interesting place with rare a week, Wednesday and Saturday at which can provide tranquility away from species of plants, animals and environ- 12:00 pm. noicy restaurants, clubs and shops but can ment. There are two ways to get into the Most visitors find the contact via online relax and have fun; with the activities like island-either from Thailand or Myanmar. and book the package of (at least 3 nights as diving, snorkeling, sea kayaking and From Thailand, it is better to take bus ei- to 14 nights or more). There are 22 Bun- with a pristine beach. ther to Ranong, border town of Thailand galows which is naturally constructed us- The Macleod Island (Khayinkwa Is- and get to Saphan Pla jetty or take direct ing wood, bamboos and some other local land) is among Myeik Archipelago in flight to Ranong and get to Saphan Pla construction materials. As soon as you southern Myanmar. It is 72 kilometers jetty and the guide of resort will pick you arrive the island, staffs’ warmly welcome from Kawthoung, border town between up to Kawthoung with hearty and warm would make you satisfy. The rooms are Myanmar and Thailand. Macleod Island smiles. If you are from Yangon, you can naturally clean but not fancy and the larger is in Myeik (Mergui) Archipelago, about take flight to Kawthoung and all the visi- double rooms which are right up on the 40 miles (72 kilometers) from Kawthoung tors from Thailand or Yangon, the speed- beach and they are very nice. The other

ACUMEN ⏐ 69

Travel-Silent Beauty.pmd 69 1/22/2014, 5:36 PM Travel

rooms are only about 50 feet behind the deep sea. The island offer very great op- land. They have very strong resistance suites and still very nice. It is provided portunity to enjoy the sea in a kayak with staying under water without any help of with hot and cool water system and wa- fresh and clean sea-views and bring the breathing. Salone is nomads in the ter purification system in bathroom, air- most interesting places like mysterious Andaman Sea and some lives in the conditioning and ceiling fans in the rooms, caves and coastal mangrove forest along Myeik (Mergui) Archipelago of southern clean mosquito’s nets. The resort also pro- the island and neighbor islands with guar- Myanmar. Some of them lives in boats in vides laundry service, Mini-spa, free wi- antee of your safety. pleasant seasons and live in the lands in fi.18 hours electricity (6 am to midnight) Lampi us the biggest island of the Ar- rainy reason. They are skillful in diving would be enough time to refill all of elec- chipelagos. There is a marine natural and swimming. Their main livelihood is tricity materials like as cameras, phone, park which is the most popular island diving for pearl, collecting shells and other and computer and so on. Breakfast and for visitors in the Mergui Archipelago. It valuable resources in the sea. They all supper was included in the price and is established in 1995 as the country’s first are fishermen and wondering around the they were very flexible. The staffs were marine national park with biodiversity, sea and sell marines’ raw material in the so very friendly and helpful. Some mangrove, clean water and coral reefs. It town as peals. struggled a bit with English but they were can be a favorite island for nature lovers. There are many interesting places like so nice and helpful and there will be no Staying 3 days in the island you would unspoiled environment, virgin jungle with problem. have best chance to see the place for bird- many tropical plants, birds species and

The climate is very suitable for visi- life includes hornbills, king fishers, kites animals on the islands and other island. tors. The temperature from November to and sea eagles. Crab-eating macaques, At the top of highest hill, you can view February stay pleasant at 26’ C to 30’ C monkeys, can be seen on the shoreline the beauty of island overwhelm miracles and March to May is hotter (32’ C to 35’ feasting on oysters. and feel excited because all are natural C). The resort opens on October 1 and Khun Pilar island is also a good place and virgin. closes on April 30. The resort recom- to visit. You will have a good foot feeling After visiting during day time, you can mended all the visitors’ medical and ac- in touching with very white clean sand have party on the beach like fire-festival cidental insurance before arrival. on the beach and colourful reefs. Then in the evening. The restaurant is able to Visitors can choose the activities in is- you can watch many birds, animals, fishes provide delicious local food and western land which can attract the interests of the and marine mammals including monitor food, especially sea food. The Mini-spa visitors. The Resort offers a very conve- lizards, turtles, sharks, snakes and also and massage service can reduce your nient and comfortable way to dive in the kites and sea eagles. The beach is half a being tired in day time. A couple from Mergui Archipelago under the guidance mile long and the depth of water is 9 to Canadians commented likes “The cost to of experienced instructors and dive mas- 12 meters deep and nice place to enjoy go there is not cheap but I would say to ters, even non-experienced driver can good snorkeling places with a lot of coral anyone it’s such a special place in this learn from them. The water is very clean reefs. world that will change rapidly as the and natural around the island is com- In addition to great opportunity to country changes go now and enjoy it as pletely isolated until 1997 with preserved study livelihood of Sea Gypsies, Salones it is.” A reef systems in the region. Under the and Pashu lives in neighboring islands water, you can see animals and things in like Nyaung Wee Island and Bo Cho Is-

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Travel-Silent Beauty.pmd 70 1/21/2014, 5:56 PM adv.pmd 11 1/21/2014, 6:46 PM Dining Out

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Dining Out-Hello.pmd 72 1/21/2014, 6:00 PM ACUMEN ⏐ 73

Dining Out-Hello.pmd 73 1/21/2014, 6:00 PM International Flight Schedules

           

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74 ⏐ ACUMEN www.myanmarb2bmagazine.com February 2014

Flight Schedule.pmd 74 1/21/2014, 5:35 PM            

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ACUMEN ⏐ 75

Flight Schedule.pmd 75 1/21/2014, 5:36 PM adv.pmd 11 1/21/2014, 6:47 PM adv.pmd 11 1/21/2014, 6:46 PM adv.pmd 11 1/21/2014, 7:41 PM