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News & Articles on Burma
Tuesday 24 July 2012
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Peace guidelines not set in stone: Naypyitaw negotiator
88 Generation Students to hold talks with president
Kachin refugees worry Chinese authorities will force them move
Thailand's PTT to aid Burma's energy shortfall
Myanmar, Thailand Form New Bilateral Cooperative Initiatives
Myanmar invites investment in mining industry
Thai firms earmark billions for Myanmar
Myanmar President Ends Visit To Thailand
Burmese Labor Minister Meets Labor Rights NGOs
US Firms Can Push Burma Reform: Hormats
Burma Eyes Overtaking Cambodia, Laos Economically
Daiwa involved in US$ 380 million Burmese project
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Peace guidelines not set in stone: Naypyitaw negotiator
Tuesday, 24 July 2012 12:49 S.H.A.N.
Speaking to 14 political parties meeting at Rangoon-based Myanmar Egress training school on Sunday, U Aung Min, Minister Without Borders as he likes to call him self, told Shan elected leader Hkun Htoon Oo the governments controversial 8 point guidelines for union level negotiations could be jointly amended.
The 8 points are:
To remain forever in the Union
To accept the Three National Causes i.e. Non-disintegration of the Union, Non-disintegration of National Sovereignty and Perpetuation of National Sovereignty
To cooperate in economic and development tasks legally
To cooperate in the elimination of narcotic drugs
To set up political parties and enter elections
To accept the (2008) constitution and to make necessary amendments in the parliament by majority consent
To fully enter the legal fold for permanent peace and live, move, work and consume in accord with the constitution
To coordinate existence of only a single armed forces in accord with the constitution
U Aung Min, vice chairman of the Union Peacemaking Work Committee (UPWC), was soliciting for cooperation from political parties and civil societies for peace building and democratization.
Hkun Htoon Oo, Aung Min (Minister), Khin Maung Swe (NDF) and Sai Nyunt Lwin at a reception in Yangon (Photo Ko Phyo Gyi / Kawli Media)
Hkun Htoon Oo, leader of the re-registered Shan Nationalities League for Democracy (SNLD) that won the most seats statewide and second most seats nationwide in the 1990 elections, replied that he would be happy to cooperate but there were three issues that needed to be dealt with:
The first is that the military is still launching attacks despite the fact that ceasefire agreements have been signed
Guidelines # 1-4 are generally acceptable. However, as to # 5-8, most of the movements think they should be resolved outside the parliament in an all-inclusive conference
Non-partisan peace monitors would also need full assurance that they would face no legal prosecutions in the event that peace talks fail and war resumes
U Aung Min, according to SNLDs deputy leader Sai Nyunt Lwin, replied: The guidelines are not carved in stone. We can discuss and amend them as necessary. Right now, we are working hard to hold a Panglong-like political dialogue before the end of 2014.
The 1947 Panglong Conference had brought Burma, Shan, Kachin and Chin together to form a union based on full autonomy in internal administration, financial autonomy and rights and privileges fundamental in democratic countries.
With regards to peace monitors, he assured that the notorious Section 17/1, by which a person could be prosecuted for unlawful association, would not be applicable. And suppose you were taken into custody, I promise to be there to get you out, he said. And if you were not released even then, I promise I would remain with you in jail.
U Aung Min said earlier that rules and regulations for peace monitors were being drafted.
However, he had little to say about current military operations launched by the Burma Army against ceasefire armies.
The latest flare-ups took place in Hsipaw on 18 July and in Mongpiang on 22 July.
The meeting, organized by Myanmar Egress, commonly regarded as the governments NGO, was also attended by Arakan league for Democracy (ALD), Mon Democracy party (MDP), National Unity Party (NUP), Chin Progressive Party (CPP), PaO National Organization (PNO) and Karen Peoples Party (KPP), among others. http://shanland.org/index.php?option=com_content&view=article&id=4822:peace-guidelines-not-set-in-stone-naypyitaw-negotiator&catid=85:politics&Itemid=266
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88 Generation Students to hold talks with president
By MIN LWIN
Published: 24 July 2012
88 Generation Students’ leaders Ko Ko Gyi [L] sits alongside Min Ko Naing. Both. (Reuters)
The 88 Generation Students activists group is tipped to meet with president Thein Sein in the near future, said one of the organisation's leaders Mya Aye.
We plan to discuss the chronology of our country the past 20 years we've been through and the future and ways to rebuild the country, said Mya Aye.
Well also urge him to stop the fighting in Kachin state and raise an issue with the land confiscations.
The group has already met with Railway Minister Aung Min, leader of the governments Union Peace Making Committee, and Thura Shwe Mann, speaker of the Lower House.
Mya Aye said although these meetings have gone well, the group claims that political activists are still subject to harassment by the authorities in Burma.
Its going well with [senior] government officials there hasn't been a problem apart from one hiccup regarding the 7 July [commemoration]. They could have protected the kids who organised it if there was mutual trust, but I am sad to see it was blocked, said Mya Aye, referring to the arrest of 20 activists on the 50th anniversary of the military's crackdown on students in 1962.
He said the 88 Generation Students would urge President Thein Seins government to remain committed to national democratisation and reform.
Several of the groups leading members first came to prominence for their participating in the 1988 uprising against Ne Wins government and were later incarcerated. After being released from prison, the democracy activists founded the 88 Generation Students in 2005.
A majority of the groups leadership was later jailed for participating in the Saffron Revolution in 2007 but was released from prison during an amnesty in January.
Since being freed, the 88 Generation Students have been travelling across Burma meeting with civil society groups and politicians.
http://www.dvb.no/news/88-generation-students-to-hold-talks-with-president/23009
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Kachin refugees worry Chinese authorities will force them move
In News/ Post 24 July 2012 / Last Updated on 24 July 2012 By KNG
 Illegal Kachin refugees in Lah Ying in China's Yunnan province.
Kachin living in internally displaced person (IDP) camps in Nongdao, China, are worried as rumors are circulating that authorities will make them move across the border to Manwing in Kachin State.
According to a person in charge of the camp, the 900 residents may have to move to Lana Zup IDP's Camp which is controlled by Kachin Independence Army (KIA) Brigade 5.
Although Chinese authorities didn't issue a letter or send an official to give notification of the move suspicions are mounting they are preparing a new camp in Kachin State, according to Nongdao IDPs Camp Committee member Hkun Htun.
Lana Zup camp committee members received an order to prepare for a new camp in the area for 900 refugees who will arrive soon, said Hkun Htun.
In the first week of July Chinese authorities ordered residents of Yang Lu and Law Hpai camps to move to Lana Zup Camp in Kachin State. But the Kachin Independence Organization (KIO) successful negotiated with Chinese officials to allow camp residents to stay in China.
Until they receive more information, the camp committee doesn't know if they should prepare for the move or not, said Zau Bawk, a committee leader.
We are taken by surprise by these new rumors. Neither the KIO or Chinese authorities have provided us with any information regarding this situation, said Zau Bawk.
Whether or not the rumors are true Nongdao camp residents are becoming increasingly concerned about what the future holds for themselves and their families. http://kachinnews.com/news/2358-kachin-refugees-worry-chinese-authorities-will-force-them-move.html
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Thailand's PTT to aid Burma's energy shortfall
Tuesday, 24 July 2012 12:42 Mizzima News
After securing agreements from the Thai government to cooperate in the development of the Dawei deep-sea port, Burmese President Thein Sein on Monday met with top Thai business executives.
Burmese President Thein Sein applauds as he listens to a presentation during his visit to the Regional Investment and Economic Center at the Laem Chabang deep-sea port south of Bangkok during his three-day trip to Thailand, which ends on Tuesday. Photo: AFP
During a meeting with PTT, Thailand's state-owned energy company, he won a pledge that the company would return some of its excess gas supply to Burma, in a bid to help resolve the country's chronic power supply shortfall.
Burma is unable to supply enough electricity to meet the country's needs, through a combination of lack of gas to run existing generators and a lack of power plants.
Thein Sein met with executives from PTT, Siam Cement Group and Charoen Pokphand Foods (CPF) and other companies to discuss business ties and cooperation.
Pailin Chuchottaworn, the CEO of PTT, Thailand's state-owned energy company, said it had won many contracts from Burma over the past 20 years, and it will allocate [a] gas supply to solve Myanmar's electricity problem in the short term.
We regard Myanmar as our second half after 20 years of expansion there. Myanmar has always honoured the contracts, even if it has a power shortage problem.
PTT Exploration and Production president and chief executive Tevin Vongvanich said the gas would total 40 million cubic feet per day from the Yadana well, but it would not affect PTT's gas supply because the company would secure more gas concessions.
According to reports in local media, Adirek Sripratak, president and CEO of Charoen Pokphand Foods, said the company planned to invest $550 million in Burma over the next three years. The investments would cover rice mills, seed, animal feed, cattle farms, and aquatic animals.
Siam Cement Group, the giant construction material manufacturer, said it would soon set up a $314 million cement production plant in Burma to support faster infrastructure development.
Santi Villasakdanont, managing director to Saha Pathana Inter Holding Plc, said the firm planned to spend about $62 million to set up an industrial estate in Rangoon or a nearby province.
However, the centerpiece of Thein Sein's trip remained the agreement with Prime Minister Yingluck Shinawatra to cooperate in pushing ahead on the Dawei deep-sea port project, which includes securing long-term financing for the project.
Ital-Thai, the parent company of the project's main developer, has had trouble coming up with development funds from governments or private organizations. Max Myanmar, a Burmese conglomerate and a local partner, said in June that it would withdraw its stake.
Work on the project has slowed in recent months, but Thailand last week recommitted itself to provide initial infrastructure financing to get the project moving again with a pledge of up to $3 billion from PTT Pcl of Thailand.
The Dawei project includes plans for a 250-square kilometre industrial area with a steel mill, petrochemical plant and oil refinery, plus a railroad and highway linkage system to Thailand's seaports and industrial districts, and on to Laos, Cambodia and Vietnam. It is estimated to cost up to $60 billion.
The two countries also signed Memorandums of Understanding agreeing to provide assistance in areas including security, infrastructure and logistics. Thailand will also provide guidance prior to 2014 when Burma becomes the chair of the Association of Southeast Asian Countries.
Thein Sein and Yingluck also agreed to open three new border crossing points near Chiang Mai, Mae Hong Son and Kanchanaburi, in addition to the three existing official checkpoints.
Thein Sein was granted an audience with HRH Princess Maha Chakri Sirindhorn at Chitralada Palace before attending a dinner reception on Monday hosted by Yingluck at Government House.
On Sunday, Thein Sein inspected the Laem Chabang deep-sea port on Thailand's Gulf Coast, which will be connected by road to Dawei, cutting out the longer sea route around the Malaysian peninsula.
Sean Turnell of Australia's Macquarie University told Voice of America in an article published on Tuesday that Thailand's economy stands to benefit from the project more than Burma's.
All the advantages go to Thailand rather than to Burma. Because really this is about getting quick access to Bangkok and some of the manufacturing outlets of Thailand and natural resources and all sort of things into the country. It's on a tiny arm of Burma, said Turnell. I mean it really involves little in the way of Burma's industrial capacity, for instance, or access to Burmese markets.
Meanwhile, the Burmese Rohingya Association of Thailand staged a protest on Monday outside the venue of Thein Sein's meeting with Yingluck. Widespread sectarian violence in Burma's western Arakan State has claimed 78 lives and caused many international organizations to criticize Burma's handling of the ethnic Rohingya issue. Thein Sein last week asked the UN refugee commissioner to take over responsibility for the Rohingyas, who are denied citizenship in Burma.
Benjamin Zawacki of Amnesty International told VOA that the overall human rights situation in Burma has gotten worse in the past year, despite the landmark political reforms.
President Thein Sein simply asserts that Rohingyas are not citizens and then, regardless of their actual status, he's currently allowing security forces under the rubric of the state of emergency to commit violations against that ethnic minority, he said.
Thein Sein will meet leaders of the Burmese community in Thailand during a visit to his country's embassy on Tuesday, prior to returning home. http://www.mizzima.com/business/7586-thailands-ptt-to-aid-burmas-energy-shortfall.html
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July 24, 2012 12:29 PM
Myanmar, Thailand Form New Bilateral Cooperative Initiatives
BANGKOK, July 24 (Bernama) -- Thai and Myanmar leaders will promote bilateral cooperation in four areas and develop connection between Dawei and Laem Chabang Ports, Thai News agency reported.
During a meeting between Thai Prime Minister Yingluck Shinawatra and Myanmar President Thein Sein here Monday, Yingluck said the four areas include personnel development, Myanmar's role as the chair of the Association of Southeast Asian Nations (Asean) in 2014, economic and social development and the construction of infrastructure.
Thailand is also ready to support the connection of Mynamar's Dawei port and Thailand's Laem Chabang port for regional interests, and both countries will form a working group to push for port development next month.
Both countries will promote border economic growth by upgrading four temporary border crossings to permanent ones, including Baan Huay Ton Moon's border in Mae Hong Son province and Baan Kiew Pha Wok in Chiang Mai in the Thai North, and the borders of Baan Phu Nam Ron in Thai West's Kanchanaburi province and Baan Tako Bon in Ratchaburi.
At the meeting both leaders witnessed the signing of two memorandum of understanding on the development of the Dawei economic zone and the development of Myanmar and the signing of a joint communique on the organisation of energy forums.
Myanmar will host the next meeting of the Thai-Myanmar Joint Committee and set up a Thai-Myanmar Friendship Association.
-- BERNAMA http://www.bernama.com/bernama/v6/newsworld.php?id=682692
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23 Jul, 2012, 07.15PM IST, AFP
Myanmar invites investment in mining industry
YANGON: Myanmar on Monday invited foreign firms to invest in its mining sector, in the latest step to open up its economy after decades of isolation from the West.
"For investors who would like to do exploration to confirm the reserve of a deposit or to start with the grassroots exploration operations in a virgin land, they may apply accordingly clearly stating their intentions," Win Htein, a top official at the Ministry of Mines, told a conference in Yangon.
"Funds required to conduct the prospecting, exploration and feasibility study are borne by the investor 100 percent at his own risk," he told an audience of about 300 delegates from 26 countries.
President Thein Sein has vowed to put the economy at the centre of his next wave of reforms, following a series of dramatic political changes since decades of military rule ended last year.
With Western nations now rolling back sanctions, interest from foreign firms is growing.
Critics say the rewards of the nation's energy bounty have so far been shared among foreign investors and the regime, rather than its impoverished people.
Seven foreign companies, from Australia, China, Russia, Thailand and Vietnam, already have mining operations, in zinc, iron, gold and other metals, the conference heard.
As the exportation of ores is not allowed, the government is encouraging firms to set up mineral processing plants and export the product, Win Htein said.
But gemstones are one area where foreign investors are not allowed to invest in mining, he said. Instead they can buy the stones from the government gem emporium for export. http://economictimes.indiatimes.com/news/international-business/myanmar-invites-investment-in-mining-industry/articleshow/15108090.cms
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Thai firms earmark billions for Myanmar
Petchanet Pratruangkrai and Achara Pongvutitham
The Nation
Publication Date : 24-07-2012
Leading Thai companies are ready to outlay more than 28.5 billion baht (US$898 million) setting up businesses in Myanmar following a meeting with President Thein Sein in Bangkok yesterday, amid expectations that a
Charoen Pokphand Group (CP), Thailand's biggest agro-industrial conglomerate, is set to invest $550 million or 16.53 billion baht in Myanmar within the next three years. CP plans to develop maize seed and farms, rice farms and rice mills, plus livestock processing plants. Its investment plan will kick off this year and run till 2015.
After meeting with Thein Sein yesterday, CP vice chairman Adirek Sripratak said the group would invest more in the country after successfully setting up both feed plants and farms since 1996. So far, its total investment in the country is about $150 million.
"Myanmar's economy is growing since the government has opened the door for foreign investors. We believe that it will create business opportunities for us," Adirek said.
Siam Cement Group (SCG), the giant construction-materials manufacturer, will soon set up a 10-billion baht ($314 million) cement production plant in Myanmar to support fast infrastructure development and market liberalisation ahead of the Asean Economic Community.
SCG president and chief executive officer Kan Trakulhoon joined a meeting between Thai and Myanmar business leaders in Bangkok yesterday. Kan said later he had discussed an investment plan with the Myanmar leader, so SCG was confident it could set up its cement plant soon.
SCG had asked the government for an investment licence two months ago. Myanmar would soon grant permission for the company, which he said, was ready to start investing immediately.
Kan said SCG was waiting for a clearer law on foreign investment, which the Myanmar government is amending in the parliament now.
The company conducted a study three years ago about establishing a cement plant in Myanmar. 10 billion baht would be invested to build a clinker manufacturing plant with a capacity of 5,000 tonnes a day, and produce about 1.7 million tonnes of cement a year. The plant would be set up in the country's southeast.
Kan said Myanmar would have high demand for cement to support construction and infrastructure development given its objective to boost its economy.
Having a plant in Myanmar would help promote sustainable business growth there and mutual benefit for both sides, as Myanmar was less likely to rely on imports.
SCG was also considering other businesses in Dawei Industrial Estate in the near future, Kan said.
Santi Villasakdanont, managing director to Saha Pathana Inter Holding Plc (Sahaphat), said the firm planned to spend about 2 billion baht ($62 million) to set up an industrial estate covering 1,000-1,500 rai of land in Yangon or a nearby province.(1 acre = 2.471 rai)
"The company is looking forward to a clearer investment law from Myanmar so that the firm will submit an investment [plan] to the Myanmar government," Santi said.
Sahaphat expected to take about three years setting up the industrial estate, which would facilitate not only its subsidiaries, but also other firms - both Thai and foreign.
Santi said Japanese companies had shown high interest in setting up plants in the proposed estate.
The company will also establish a garment manufacturing plant and a consumer goods factory in Yangon soon. Myanmar offered cheaper labour and there was strong demand for garments.
Santi, also chairman of the Thai-Myanmar Business Council, said Nay Pyi Taw wanted Thailand to help it boost its power production to support its economic growth. To date, the country has relied mainly on hydro-electricity, but Thein Sein said the country would focus more on gas. Myanmar would like PTT to help it supply gas to local people.
Isara Vongkulsolkit, chairman of Mitr Phol Sugar Group, said his firm was studying opportunities to grow sugar and set up a plant in central Myanmar. But, it wants to carefully consider logistical costs, environmental factors, and whether local people support the growth of a sugar industry in the country.
Isara said the firm would talk with Myanmar officials about help to promote sustainable farming.
Thanit Sorat, secretary-general to the council, said Thein Sein urged Thai investors to expand business in Myanmar and lead |foreign spending as many investors from western countries and Japan had moved rapidly to expand investment in the country. They urged Thai business people to invest in agriculture, food processing, energy development, banking, tourism, and other services. There were opportunities to expand business not only for large investors, but also small and medium-sized firms.
Permanent secretary at the Commerce Ministry, Yanyong Phuangrach, said Myanmar wanted Thailand to help develop its milling and rice farming.
He said Myanmar had high potential to become a big global rice supplier, as it had plenty of land and used to be the world's leading rice exporter. The country now exports only about 700,000 to one million tonnes of rice a year. But if the country could boost its production area and develop its milling, via close cooperation with Thailand, it would be able to export much more.
http://www.asianewsnet.net/home/news.php?id=33906&sec=2
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July 24, 2012 14:20 PM
Myanmar President Ends Visit To Thailand
BANGKOK, July 24 (Bernama) -- Myanmar President Thein Sein visited the Grand Palace and the Temple of the Emerald Buddha in the heart of Bangkok Tuesday morning, before ending his three-day official visit to Thailand, Thai News Agency (TNA) reported.
Prior to his departure from Bangkok, the Myanmar President made his unscheduled visit to the Grand Palace, where the Temple of the Emerald Buddha is also situated, both are renowned among Thailand's world-class tourist attractions for their charming traditional Thai architecture and beauty.
President Thein Sein's visit to Thailand this week, scheduled for July 22-24, to strengthen bilateral relations between Myanmar and Thailand, is his second trip to the Thai Kingdom as a top Myanmar leader. Senior General Thein Sein first visited Thailand in 2008 when he was then Myanmar's Prime Minister.
-- BERNAMA http://www.bernama.com/bernama/v6/newsworld.php?id=682730
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Burmese Labor Minister Meets Labor Rights NGOs
By NYEIN NYEIN / THE IRRAWADDY| July 24, 2012 |
Thousands of Burmese migrants work long hours for low wages at factories such as this one in Thailand. (Photo: Jacobbaynham)
Burma's Labor Minister Aung Kyi met with representatives of five NGOs at the Burmese embassy in Bangkok on Tuesday when they discussed issues surrounding Burmese migrant workers, their rights, and the conditions they work under.
The meeting was arranged as part of President Thein Sein's three-day visit to Thailand where he focused mostly on cementing plans to proceed with the Dawei Special Economic Zone.
Accompanying Aung Kyi were Labour Affairs Coordinator Kyaw Kyaw Lwin and two other diplomats from the Burmese embassy in Thailand. The NGOs represented at the meeting were: the Foundation for Education and Development (FED); Burma Association Thailand (BAT); the Migrant Assistance Program (MAP Foundation); Indonesias Diponegoro University (UNDIP); and Mekong Migration Network.
The labor rights activists say they raised the issue of workplace violations. They said that many Burmese migrants complain that their Thai employers treatment of them remains unchanged despite the legalization of many migrant workers under the temporary passport scheme which was introduced in 2009.
Htoo Chit, the director of FED, said that the violation of work contracts is a common problem, in reference to the terms and conditions which migrant workers sign with their employers when they join the workforce.
Htoo Chit said he and other representatives of the NGOs highlighted this issue and similar problems to Burma's labor minister, and that they expressed their opposition to the Thai governments statement that it intended to begin deporting pregnant migrants.
Burmese workers continually face exploitation in Thailands factories despite attaining legal status in the form of temporary passports and work permits, he said.
During Burmese opposition leader Aung San Suu Kyis visit to the country in May, Thai Deputy Prime Minister Yuthasak Sasiprapa promised that Thailand would take better care of Burmese workers and increase their salaries, which are regularly paid at rates below the official Thai minimum wage.
Labor rights activists in Mae Sot said that wages had been increased marginally in that area, but that those migrants were still restricted from travelling outside the province to look for better-paying work.
Moe Gyo, the chairman of Mae Sot-based Joint Action Committee for Burma Affairs, said, The travel restrictions set by the Mae Sot authorities have been informally imposed since the middle of May this year.
At Tuesdays meeting, Aung Kyi told the NGO representatives that Thai Prime Minister Yingluck Shinawatra had assured him that Thailand would take care of Myanmar laborers in Thailand in a just manner and according to Thai laws.
But Htoo Chit said that many Thai authorities are themselves opposed to the very laws they have created. We urged the labor minister to talk about these concerns with the Thai government, he said.
In Thailand, there are somewhere between 2 to 3 million Burmese migrants working mainly in factories, fisheries, agriculture and construction or as domestic workers.
Meanwhile, on Monday, 13 Burmese workers from a garment factory in central Thailand's Nakorn Sawan province were punished for taking a days leave on Saturday.
Speaking to The Irrawaddy on Tuesday, one of the workers, Kyaw San Oo, said, We are paid less than the wages stated in the contracts, and we must work six days a week. On Saturday, 13 of us took a day off and on Monday we were told not to come back to work for seven days.
He said that according to their work contracts, the cost for a temporary passport and work permit should not have exceeded 10,000 baht (US $333). However, they each had to pay 12,000 baht, and 1,000 baht is deducted from their salaries every month to repay the outlay.
He said that, according to the work contracts that the 60 migrant workers have signed, the stated daily wage is 232 baht (US $7.75) plus additional earnings should be available through overtime. However, workers are paid by production and never paid overtime, he said.
We only earn half of that wage, said Kyaw San Oo. This month I only earned 2,784 baht [$93] and was deducted 2,000 baht for my passport and work permit. This is not enough to live on. http://www.irrawaddy.org/archives/9920
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US Firms Can Push Burma Reform: Hormats
By LALIT K JHA / THE IRRAWADDY| July 24, 2012 |
 Robert Hormats addresses the Peterson Forum for International Economics in October 2010. (Photo: US State Dept)
WASHINGTON Pushing for a greater presence of American companies in Burma, a top White House official argued on Monday that the US can facilitate the ongoing economic reform process in the strategically key Southeast Asian nation.
However, to ensure that American businesses play a constructive role, a number of reporting and monitoring steps must be followed, argued Under Secretary of State for Economic Growth, Energy and the Environment Robert Hormats after visiting Naypyidaw and Rangoon on July 14-15.
We want American companies to go in we think that American companies by practicing as they do in other parts of the world social - responsibilities, environmental responsibilities, dealing with ethnic minorities in a very constructive way - can actually augment, assist [and] facilitate the reform process and we think that is important, he told an audience in Washington.
We also want to be able to demonstrate to the people of that country that we, as we go in, are keeping tabs on what American companies are doing, Hormats said responding to a question at the prominent Center for Strategic and International Studies think-tank.
Hormats, who led the highest economic and commercial delegation to Burma in more than a quarter-century, said unlike other countries, US companies licensed to do business in Burma have reporting requirements on dealings with various people, issues regarding ethnic minority groups as well as environmental and labor practices.
We are particularly focused on transparency, he said. This is critical from our point of view and is critical from the point of Aung San Suu Kyi and that is why we want full disclosure of what our companies are doing, with whom they are doing it and where they are doing it.
Hormats added that any US companies dealing with the military-linked Myanmar Oil and Gas Enterprise (MOGE) would require a greater degree of transparency. We are very insistent that any company that deals with MOGE would have to report within 60 days to the US government, he said.
The Burmese government also sees this as an opportunity to diversify their economic relationship so they do not have to depend on just one or two countries, explained Hormats. They are very accommodating to this, he said.
However, Hormats revealed that a timetable for the permanent easing of sanctions on Burma has still not been drawn up, while conceding that any further democratic and economic reform would be matched by the Obama administration. He also expects more political prisoners to be released soon.
For those US companies aiming at doing business in Burma, Hormats cautioned that it remains a complicated fiscal environment. The country not only has very poor infrastructure, but also an education system that lags way behind and armed ethnic minorities who are very concerned about investment in their territory, he said.
We want American companies to go in, but we want them to be responsible investors, which is to say that they have to do a lot before they make an investment. They have to understand the complexity of the country, said Hormats, adding that the US government is working to make investment easier. http://www.irrawaddy.org/archives/9851
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Burma Eyes Overtaking Cambodia, Laos Economically
By: RFA ; July 24, 2012
Burma hopes to overtake neighbors Laos and Cambodia in terms of average income per person within two to three years, as the country embraces political and economic reforms, Burmese Industry Minister Soe Thein said Monday.
I hope we will have higher average income per person than Laos and Cambodia by 2014-15. It is possible, he said in an interview with RFA's Burmese service.
Soe Thein was answering a question on his expectations for the Burmese economy in the next five years.
Burma: Pagodas and temples in present-day Pagan (Bagan), the capital of the Pagan Kingdom
Burma is languishing with a gross national income per capita of U.S. $379.60, based on U.N. figures in 2009, the lowest among its fellow member states in the Association of Southeast Asian Nations (ASEAN)Brunei, Cambodia, Indonesia, Laos, Malaysia, the Philippines, Singapore, Thailand, and Vietnam.
Laos has a per capita income of U.S. $1,130 while Cambodia has U.S. $830, based on 2011 figures by the World Bank.
The gross national income per capita is the dollar value of a country's final income in a year, divided by its population. It reflects the average income of a country's citizens.
A nominally civilian government that took over power in Burma in March last year after decades of harsh military rule and financial mismanagement is implementing democratic and economic reforms that have led the international community to ease sanctions on the country.
As part of economic reforms, President Thein Sein's government, with the help of the International Monetary Fund, launched a managed float of its kyat currency in April to help normalize and unify its multiple exchange rates.
Foreign investment law
The country's parliament is also discussing a foreign investment law, which reports say will spell out new tax exemptions, land-use terms, legal structures, and incentives for foreign companies.
Our existing law [on trade] are already good. But to be able to compete with [neighboring] ASEAN [countries] and to protect the people, to protect our environment, we are drafting the new law, Soe Thein said.
Actually it was already discussed at the parliament in the first session, and now this is going to be discussed again, he said.
When asked when the much awaited law will be approved, he said, It doesn't matter, it will be done at some point.
Even if this is not done yet, the existing foreign direct investment law is not bad at all. We can apply it for now. When the new law is approved, we can enjoy better benefits.
Soe Thein said Burmese authorities will treat foreign companies on an equal basis based on market forces even though Burma has been close to China for decades especially under military rule.
This is a market economy. Local partners will choose. If we consider efficiency, lets say if you buy something, you choose a good product. In business, you have to choose the best partner, he said.
Asked whether foreign investments are flowing into Burma rapidly in line with reforms, he said there could be a significant rise early next year.
We are going to have it. For now, we are still in the process of discussing. I myself have been discussing many times already. It will be a lot more progress by the beginning of next year, I think. Meanwhile, there is some increase.
Jobs
On potential employment benefits, the minister said some 110,000 jobs had been created over the last year with a potential for one million jobs when the government enters into peace with ethnic armed rebel groups.
When the peace process is done, we will have more job opportunities in the [ethnic] regions [through the efforts of] international donors. Creating jobs is considered the number one criteria. We choose factories that can provide more jobs. Eventually we will have up to a million [jobs].
The government has struck ceasefire agreements with several ethnic armed groups but their leaders said that the ceasefire is just the first step of a process that must include political solutions.
Clashes have been reported regularly in Shan state, Karenni state, Karen state and most notably in Kachin state, where rebels have not reached a truce despite several rounds of negotiations.
Reported by Kyaw Kyaw Aung. Translated by Khim May Zaw. Written in English by Parameswaran Ponnudurai. http://www.eurasiareview.com/24072012-burma-eyes-overtaking-cambodia-laos-economically/
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Daiwa involved in US$ 380 million Burmese project
Tuesday, 24 July 2012 15:50 Aye Kyawt Khine
Rangoon (Mizzima) Daiwa, a Japanese technological company, will lead a US$ 380 million plan to build a Burmese government computer backbone connecting key government sectors, an official from the Myanmar Computer Industry Association (MCIA) said.
Thaung Tin, an MCIA executive, said under the project Daiwa would provide the computer technology, software, equipment and expertise.
The project includes providing a secure online banking system for the Central Bank of Myanmar in Naypyitaw and Rangoon.
The banking project will start in September. In August, Daiwa, Myanmar Investment Commission, Myanmar Computer Industry Association and others will sign an agreement.
The program represents the first major technological investment in Burma involving foreign companies since the U.S. lifted economic sanctions against Burma, said Aung Zaw Myint, a central MCIA executive.
Reuters said Daiwa's plan would connect major government sectors in Burma as well as schools and hospitals to a cloud computing system that it sees as a cheaper and faster alternative to building traditional server-based systems in a country where the supply of electricity and network engineers remains scarce.
The "cloud" system was expected to cost about $384 million, and start with the central bank's hubs in the capital Naypyitaw, the country's biggest city, Rangoon, and the second largest, Mandalay.
As a part of the plan, Daiwa will cooperate with dozens of computer and technological companies in the project.
Daiwa is also involved in building a computerized Burmese stock exchange. http://www.mizzima.com/business/7593-daiwa-involved-in-us-380-million-burmese-project.html
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