May 21, 2013

Obama Says Myanmar’s Democratic Progress Fuels Economy

President Barack Obama told Myanmar President Thein Sein that building democracy and ending human rights abuses will bring greater prosperity to the Southeast Asian nation.

Thein Sein’s White House visit yesterday was the first by a leader from the country formerly known as Burma in 47 years and comes amid warming relations and U.S. support for its budding democratic institutions after decades of military rule.

The U.S. wants to assist in spurring broad-based economic development “and that includes the prospect of increasing trade and investment in Myanmar, which can produce jobs and higher standards of living,” Obama said at the conclusion of an Oval Office meeting with Thein Sein. “As President Sein is the first to admit, this is a long journey.”

Obama said he also expressed “deep concern” about violence against ethnic and religious minorities and that abuse of human rights “needs to stop.”

The meeting took place as Thein Sein, who took office two years ago, is clearing the way for overseas investment in Myanmar, which is sandwiched between China and India. U.S. and European companies including Ford Motor Co. (F), Coca-Cola Co. (KO) and Unilever NV (UNA) are scouting for opportunities in Myanmar. As western sanctions are lifted, Sein’s government is seeking to modernize the country’s financial system and infrastructure before elections in 2015.
U.S. Rebalancing

“The U.S. has decided to rebalance its foreign policy toward Asia, and the idea behind that rebalancing is that the U.S. can benefit from Asia continuing to be a growth engine for the global economy,” said Vikram Nehru, a senior associate at the Carnegie Endowment for Peace in Washington who focuses on East Asia.

While human-rights organizations criticized Obama’s invitation as premature, the White House said in a statement that Obama was hosting the former military leader to signal support for “those governments that make the important decision to embrace reform.”

Obama referred to the nation as Myanmar in his remarks, even though the U.S. officially uses the name Burma. White House press secretary Jay Carney said the U.S. “has begun to allow limited use of the name Myanmar as a diplomatic courtesy” to show respect for the progress made there.

In yesterday’s talks, the two leaders discussed the rule of law, proper use of courts and property rights of farmers, among other items, Thein Sein said.
‘Daunting Task’

“It is a daunting task ahead of us,” Thein Sein said of the changes toward greater democracy, while thanking the U.S. government and Obama for hastening changes.

The Myanmar leader said on May 2 that the growth of democracy in his homeland must go hand in hand with economic development and that improved relations on a global scale will create jobs and provide the country with advanced technology.

During its decades of isolation, the Myanmar’s economy was dependent on China but the shift toward democracy offers “a little more a little more counterbalance,” said Murray Hiebert, senior fellow and deputy director of the Sumitro Chair for Southeast Asia Studies at the Center for Strategic and International Studies in Washington.

“This gives them a little more leverage, they can look at other places for foreign investment, they can look at other places for aid and advice,” Hiebert said in a telephone interview.
Obama Visit

Obama hailed Myanmar’s progress in democracy and human rights during a November visit that was the first by a U.S. president. His stop in Myanmar marked the end of U.S. diplomatic isolation.

The U.S. relaxed sanctions on Myanmar, which the U.S. still officially calls Burma, in 2012 after Sein engaged with political opponents, released dissidents and relaxed censorship following his party’s victory in a 2010 election that ended five decades of repression and direct military rule. The European Union lifted sanctions last month.

The former British colony is one of the world’s least developed nations. Citizens average just four years of education. Myanmar is also one of Asia’s last untapped frontier markets. Even so, the nation’s economy will expand 6.2 percent this year, the International Monetary Fund said in October 2012.
U.S. Companies

Ford said April 30 it opened its first dealership in Myanmar after the U.S. eased sanctions last year. Companies such as Cisco Systems Inc. (CSCO) and Microsoft Corp. (MSFT) are already working with the U.S. and Burmese governments to help train local teachers and computer programmers.

Sein released at least 19 political prisoners, the Associated Press reported, before his White House visit.

Human rights advocates accused Sein of dragging his feet on promises for change and said many pledges haven’t been met, including a panel to review political prisoner cases.

“The last year has seen devastating violence against minorities and a stalled reform process,” John Sifton, Asia advocacy director at Human Rights Watch, said in an e-mailed statement. Obama must “make it clear that there are consequences if the Burmese government fails to implement its previous human rights pledges.”

Sifton said both governments should set goals for progress to ensure “free and fair parliamentary elections in 2015” including a constitutional amendment removing Myanmar’s military authority over its civilian government.

Source: Bloomberg

Ericsson poised for rapid telecom expansion

With the winning applicants for two new telecom licenses set to be announced next month and a second lottery of 350,000 SIM cards at K1500 apiece being held this month, the country’s weak telecom infrastructure is straining.

Mobile network supplier Ericsson, however, says it is well-prepared for a rapid expansion in Myanmar and has been studying the market and seeking customers since re-establishing its office here in June last year.

“Once the new licenses are awarded, network rollout and expansion will be done at a fast pace,” Ellen Alarilla, head of communications for Ericsson Philippines told The Myanmar Times on May 17. Ericsson is currently interviewing applicants for 50 more jobs “in anticipation of a fast start to deployments once licences are awarded”, she added.

An economic impact study Ericsson conducted last year “indicated that 90,000 jobs could be created within three years” of the licenses being granted and that two-thirds of these would be in the telecom sector, Ms Alarilla said.

Besides providing equipment for the new networks, existing ones need to be expanded due to a surge in new customers since the first lottery of K1500 SIM cards last month. The Ministry of Communications and Information Technology said Yangon, Pathein, Bago and Pyinmana regions are oversubscribed and need more base stations to handle the traffic, deputy minister U Thaung Tin said.

A total of 350,000 CDMA SIM cards were sold last month at K1500 apiece. Previously, SIM cards sold for K200,000 apiece, after falling from K500,000 apiece in April last year.

This month’s lottery for the CDMA 800MHz network is likely to increase complaints from consumers about poor access. U Thaung Tin said the ministry was worried “about creating traffic jams on the network” and as a result the third lottery, next month, will include cheap SIM cards for the GSM network.

Kyaw Haling, president and Research director of Myanmar Survey Research pointed to falling SIM card prices as the trigger for a “massive inflow” of consumers into the mobile market. The potential for expansion is even greater because the influx has been from cities while the penetration rate remains low in rural areas.

“Considering that 70pc of Myanmar’s population is rural, market potential is huge. There are millions of people without a mobile,” Kyaw Haling said.

Ms Alarilla agreed: “Within 3-5 years we will see mobile penetration reach 70-80pc.”

Marita Schimpl, head of qualitative research at MSR, said cell phone access leads to Internet access.

“Studies show huge increases in Internet penetration across Asia because people nowadays use their mobile to access the Internet. In Myanmar most people aspire to own a mobile, and in cities it has to be a smartphone.” she said.

More mobile phones will lead to higher Internet access, she added.

Ericsson is well aware of this trend. “What we have seen in Southeast Asia is that the mobile phone will be the main means to access the Internet for the majority of the population. This area has grown around 60pc year on year, and we now have more than 1.2 billion subscriptions worldwide,” Ms Alarilla said.

Ericsson’s study also indicated that “direct and indirect impacts of mobile telecoms could account for up to 7.4pc of Myanmar’s GDP within three years”.

Ms Schimpl said that there is a perception that weak mobile network infrastructure will be “sorted out by the new market players”. Slow Internet access, weak signals and frequent disconnections are the major problems, she added.

Source: Myanmar Times

The “Italia-Myanmar Business Council” established today in Torino

PRESS RELEASE

The “Italia-Myanmar Business Council” established today in Torino

The “Italia – Myanmar Business Council” (I.MY.B.C.) was established today, on 20th May 2013, through a deed signed by notary public Valeria Insabella.

The I.MY.B.C. is a non-profit association aiming to promote the political, economic and cultural cooperation between Italy and the Union of Myanmar, by fostering the relations between the two countries’ institutions, companies and universities.

In the commercial field, the association is aiming to diffuse among Italian companies the opportunities offered by the new economic reality of Myanmar.
The founders of the I.MY.B.C. are:

- Prof. Gianmaria Ajani, Dean of the University of Torino;
- Dott. Roberto Arditti, Director of institutional relations of Expo 2015;
- Avv. Paolo Bertolino, Secretary General of Unioncamere Piemonte;
- Dott. Guido Bolatto, Secretary General of the Turin Chamber of Commerce;
- Avv. Michele Briamonte, managing partner in Grande Stevens Law Firm;
- Ambassador Giovanni Castellaneta, President of SACE s.p.a.;
- Hon. M. Piero Fassino, Mayor of Torino;
- Notary Andrea Ganelli, the designated Honorary Consul-General of Myanmar;
- Prof. Marco Gilli, Dean of the Politecnico of Torino;
- Dott. Ignazio Moncada, President of FATA Group s.p.a.;

The Association is presided by Hon. M. Fassino, the Mayor of the city of Torino, who is an expert in Myanmar and has been a great supporter of the process of political and economic reforms in Myanmar.

The Vice President of the Association is M. Andrea Ganelli, notary public and the designated honorary consul for Myanmar in Torino and in Piedmont.

For further information, please contact Notary Andrea Ganelli: 011.5061611 - segreteria@imybc.it.

May 20, 2013

Invitation: Presentation of Improved Cooking Stoves (ICS) Project in Myanmar - 23 May 2013

Core CarbonX Sols Pvt Ltd is developing a project to replace the traditional three stone/mud stoves with the introduction of Improved Cooking Stoves (ICS) in the Republic of the Union of Myanmar under the Clean Development Mechanism (CDM) (https://cdm.unfccc.int/ ).

The project will reduce the use of non-renewable biomass thus reducing deforestation associated with firewood use. By reducing firewood consumption for cooking purpose, the project activity reduces green house gas emissions stemming from the use of non-renewable biomass. The project activity will also contribute considerably to user’s economic sustainability through the more efficient use of firewood. Energy savings at both individual house and national levels make vital contributions to their economic competence.

With its vast experience in the development of improved cook stove CDM project in South Africa, the project developer now aims to distribute ICS in one million households of the Republic of the Union of Myanmar.

The project seeks to claim carbon credits from the displacement of fossil fuel that would be used for meeting similar thermal energy needs. The project will be registered as a Programme of Activities (PoA) with the Gold Standard Scheme to get the carbon credits. The income generated from the sale of these carbon credits will be used as funding revenue to subsidize the purchase of the ICS.

The Gold Standard scheme sets high demands on the involvement of stakeholders into the project development process with local stakeholder meeting. Core CarbonX is organizing this meeting in the framework of Gold Standard Scheme. In this meeting, project will be introduced to the participants and assessment will be held.

Agenda of the meeting is as follows:
• Opening of the meeting
• Explanation of the project
• Questions for clarification about project explanation
• Blind sustainable development exercise
• Discussion on monitoring sustainable development
• Closure of the meeting

We hope that the meeting will be a useful consultation exercise for us and all stakeholders attending. The output of the stakeholder’s meeting will provide a positive contribution towards the development of the PoA.

We will be honored for your participation in the meeting on 23rd May 2013 at 3:00 PM at Hotel Sedona, Yangon, the Republic of the Union of Myanmar. Please confirm your attendance to the below mentioned email before 22nd May 2013. In case, you will not be able to attend the meeting, please write us your comments to nmohanty@corecarbonx.com.

We hope to realize this environmental sound and climate friendly project with your help and income of Certified Emission Reductions (CERs) under the Gold Standard Scheme.

STOCKS NEWS SINGAPORE-WE Holdings jumps on Myanmar business plan

Shares in WE Holdings Ltd jumped as much as 11 percent after the electronics manufacturer and distributor unveiled plans to invest in a Myanmar-based cement plant.

WE Holdings plans to buy a 20 percent stake for $20 million in Dragon Cement, a unit of the Ruby Dragon controlled by Myanmar tycoon Nay Win Tun, with the option of purchasing another 20 percent in three months after the completion of the deal.

Shares of the company jumped to a one-month high of $S0.113, and trading volume more than quadrupled to over 200 million from their five-day average. WE Holdings, which has a market value of $55 million, topped trading volume.

Companies tapping business opportunities in the Southeast Asian country have seen their shares surge on expectations of strong growth, but the country's political uncertainty remains a risk.

Last month, Aussino Group Ltd, a Singapore bed linen retailer, planned to buy the energy business of Max Myanmar Group but the Singapore Exchange rejected the deal, citing that the head of Max Myanmar remained on the U.S. sanction list. Shares of Aussino, which had run-up ahead of the announcement, dropped as much as 58 percent within a day to a 10-month low.

Source: Reuters

Press release: Invitation to International Monetary Fund (IMF) seminar on the global economic outlook and Myanmar’s growth prospect

Date: Wednesday, May 22, 2013



Time: 3:00-4:00 pm (Please arrive a little early for registration.)



Venue : UMFCCI

No. 29, Min Ye Kyawswa Road,

Lanmadaw Township, Yangon



Speaker: Mr. Matt Davies, Deputy Division Chief, Asia and Pacific Department, IMF



Mr. Matt Davies is the IMF’s mission chief for Myanmar and a deputy division chief in the Asia Pacific Department.

He was been on the staff of the IMF for 12 years working primarily on South East Asia and the Pacific.

Until recently, he was the head of the IMF’s regional technical assistance centre for the Pacific Islands, based in Fiji.

Prior to joining the Fund, Mr. Davies was an economist in the UK and Papua New Guinea governments.



Reference: The latest World Economic Outlook and Asia-Pacific Regional Economic Outlook can be found at http://www.imf.org/external/index.htm.



Please RSVP your attendance to Keiko Utsunomiya (Ms) kutsunomiya@imf.org by May 20.





Please feel free to pass on this invitation to colleagues in your institution or other interested organizations.



Our thanks to the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) for kindly hosting the event. To facilitate security access, visitors are recommended to bring a photo ID.


May 19, 2013

Bashneft, Nobel Oil advance to second bidding round for Myanmar onshore sections

Russia's Bashneft (RTS: BANE) and independent oil and gas holding Nobel Oil have qualified for the second bidding round in Myanmar's tender on 18 onshore hydrocarbon sections, Myanmar's Energy Ministry reported in April.

Fifty-seven other companies were cleared for the second bidding round, from Austria, Azerbaijan, Brunei, UK, Vietnam, Indonesia, India, Italy, Canada, China, Korea, Luxembourg, Malaysia, Netherlands, UAE, Pakistan, Singapore, U.S., Thailand, France, Switzerland, Sweden, and Japan, along with Myanmar's own MPRLE E&P.

Source: Highbeam Business

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