Thura NewsViews. Myanmar Economics and Politics. Weekly Newsletter. Issue 213, April 21, Politics

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1 Issue 213, April 21, 2016 Thura NewsViews Politics Dozens of political prisoners released Myanmar has released scores of political prisoners in recent weeks, an encouraging sign in the first few weeks of the country s new government, which is now led by the National League for Democracy (NLD). On April 8, days before the country s New Year holiday when the country largely shuts down for more than a week a number of student protestors were released from prison. Many of these are regarded as political prisoners and were arrested after a heavy police crackdown at Letpadan, Bago Region, in March last year, when students were marching in protest against a controversial new education law. On Myanmar s New Year s Day, on April 17, President U Htin Kyaw issued a statement saying that the government planned to free more political prisoners. Later that day, 83 prisoners of conscience were released, U Zaw Htay, deputy director of the president s office told AFP. The pardon said the amnesty was granted to make people feel happy and peaceful and [to promote] national reconciliation during the New Year. Under military rule, the government often jailed dissidents for some of the smallest of crimes, with many spending decades in jail. Many of the new MPs voted in after the election in November spent years under arrest for their political activities when the country was ruled by the military. Suu Kyi promises to push for constitutional change State Counsellor Daw Aung San Suu Kyi has promised to push ahead for changes to Myanmar s controversial 2008 constitution and build true democracy in the country. In an address to mark the Buddhist New Year, Suu Kyi, who is barred from the presidency, said that her party s policies and principles are to ensure national reconciliation, internal peace, the rule of law, amendments to the constitution and keeping the democratic system dynamic. She emphasised the point that constitutional amendments are required. The charter, signed in a controversial referendum shortly after the devastating Cyclone Nargis, is currently protected from changes by the military, who maintain a quarter of all seats in parliament. The military also maintains control of the Ministry of Home Affairs, as well as of the Ministry of Defence and of Border Affairs. In order to bypass article 59(f) of the constitution, which bars her from presidency, Suu Kyi installed her long-term confidant U Thura Swiss Ltd. Economic Research Shwe Hinthar B /2 Miles Pyay Road 11 Qtr. Hlaing Tsp. Yangon, Myanmar Phone +95 (0) Fax +95 (0) info@thuraswiss.com Subscription at: newsletter/newsletter-latestissue April Highlights Myanmar was struck by a 6.9- magnitude earthquake on April 12, although there were no reports of death and only minor damages. State-media reported that 36 people were killed and 316 injured during Myanmar s Thingyan New Year festival. Japan s Yakult Honsha Company has been approved permission to build a US$ 11 million factory at Myanmar s Thilawa Special Economic Zone.

2 Htin Kyaw as president and created a new state counsellor role, which analysts have said works in a similar way to a prime minister. She is also minister for foreign affairs and the president s office. Japan foreign minister plans to meet with Suu Kyi Japan s foreign minister Fumio Kishida is planning to travel to Myanmar in the next few weeks to meet with his counterpart Daw Aung San Suu Kyi. A report in Nikkei Asian Review said that Kishida plans to use the visit to invite Suu Kyi and her new administration to Japan in the near future. Kishida also plans to visit Thailand, Laos and Vietnam, the report said. Suu Kyi has already hosted China s foreign minister Wang Yi in early April. Japan has offered much assistance to Myanmar during its reform process, and has been included in a number of private sector developments, particularly with regards to infrastructure. Economy FDI reaches record levels in financial year Myanmar attracted a record level of foreign direct investment (FDI) in the financial year, which ended at the end of March. Reports said that FDI stood at US$ 9.4 billion for 217 projects for the financial year, citing figures from the Directorate of Investment and Company Administration (DICA). A report in Reuters said the figures show a growing, if cautious, interest in Myanmar, which is regarded by some as the last untapped markets in Southeast Asia. The record figure also represents a rush of last-minute approvals before the new government took power. In , Myanmar received US$ 8 billion in FDI and US$ 4.1 billion in By far the highest investment last year was in oil and gas, followed by transport, communication and manufacturing. Singapore was the highest foreign investor, with US$ 4.3 billion invested in 55 projects, followed by China, which invested US$ 3.3 billion. However, the figures need to be interpreted carefully. For instance, many companies choose to invest in Myanmar through a Singapore subsidiary for tax reasons. Therefore, the figures for Singapore are likely to be inflated. Also the published FDI figures are the approved value instead of the actual investment volume. Farmers call for authority s help in rice industry A dramatic fall in the price of rice has led to farmers calling for assistance from authorities. A local report said that the price of Myanmar s rice started to fall after Indonesian buyers discovered pests in a rice shipment from Myanmar and refused to pay for the goods. The report said that the price for 9,000 gallons of rice is now MMK 450,000, compared with MMK 600,000 earlier in the year. Another issue, the report said, is that many traders are refusing to pay until after the Thingyan New Year holiday, with many preferring to wait until the end of April, making it difficult for many farmers to pay back their loans. State-owned Myanma Agricultural Development Bank, one of few funding options for farmers, has struggled to distribute loans since heavy flooding destroyed much of Myanmar s farmland in July and August last year. U Myo Thura Aye, a rice exporter and member of the Myanmar Rice Federation (MRF), urged the bank to allow farmers more time after the Thingyan holiday to repay their loans. The strengthening of the kyat against the US dollar in the last year has also impacted the profits of rice farmers, the report said. 2 Myanmar in Figures GDP (PPP): $244.3bn (2014) GDP (official ex.rate): $65.29bn (2014) GDP growth rate: 8.3% (FY proj.) Population: 51.4mn people (2014) Inflation: 8.4% (2015) Foreign trade: $24bn (FY ) FDI: $56.5bn (30/04/2015) International reserves: $8.7bn (Dec 2014) CBM rate Kyat/$ = 1180K/1$ (21/04/16) For advertising with Thura Swiss please contact us by info@thuraswiss.com or by phone +95 (0) Please note that our advertisement contracts are based on a subscription of a minimum of 4 weeks.

3 Companies and Investments Chevron puts gas blocks up for sale American firm Chevron Corp has put its Myanmar gas block, which is worth an estimated US$1.3 billion, up for sale, according to a report in Reuters. The report said that the sale would mark the largest merger and acquisition involving the country s assets and was being carried out by Chevron to preserve cash and retreat from non-core assets amid falling global oil prices. The report cited unnamed sources as saying that interested parties could number about half a dozen countries, including Australia s Woodside Petroleum, PTT Exploration and Production from Thailand, as well as companies from Japan and China. Adrian Pooh, an analyst for energy consultancy Wood Mackenzie, was quoted as saying that Myanmar is regarded as a strong market, due to its export markets with China and Thailand, as well as a growing domestic market. Australian firm to invest in mining services Australia-based company Titeline Valentis Limited (TVL) has received approval from the government to invest US$26.7 million in exploration drilling services in Myanmar s mining sector. According to reports, the company initially invested in two diamond drilling rigs in Yangon and the second phase of its investment will be in constructing further rigs as well as training local workforce. Myanmar introduced a new mining law earlier this year that is regarded by many as being a positive move for foreign companies interested in the vast resources available in Myanmar. TVL established its presence in Myanmar in 2014 and began exploration and mining services for gold in Its clients include companies from Australia, Canada, South Korea and Hong Kong. Kian Joo to establish packaging plants Malaysia s Kian Joo Can Factory BHD has announced it will invest US$ 2 million to establish carton and packaging plants in Myanmar, close to the multi-million dollar Thilawa Special Economic Zone. Ooi Teik Huat, Kian Joo s chief financial officer, said the company has spent US$ 15 million in acquiring the land at the site, which is south of the commercial centre Yangon. Ooi said he expects the plants to be complete by the end of this year with operations live by the end of December, The company expects the plant will contribute meaningfully to its financial performance within the next four or five years. 3

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5 Events Name Details Organizer/Ministries Contact Information International Conference on Industrial Electronics and Electrical Engineering Myanmar Wood (International Wood Processing Exhibition) 3rd Annual Myanmar Upstream Oil & Gas Summit & Exhibition 3rd Global Oil & Gas Myanmar Venue: Yuzana Garden Hotel Date: 22 April 2016 Venue: Tatmadaw Hall, Yangon Date: May 2016 Venue: tbc, Nay Pyi Taw Date: May 2016 Venue: Sule Shangri La, Ygn Date: May 2016 Science Plus Myanmar Industries Association CWC Myanmar Tel: ITE Group Tel: +95(0) rd International Medical, Hospital, and Pharmaceutical Exhibition Venue: Tatmadaw Exhibition Date: May 2016 VINEXAD Myanmar International Education and Career Fair Venue: Tatmadaw Hall, Yangon Date: June 2016 Dagon Exhibitions BuildTech Yangon 2016 Venue: MCC, Yangon Date: May 2016 Sphere Exhibits Myanmar Banking & Finance Conference Venue: Yangon, Myanmar Date: June 2016 Sphere Conferences Tel: Myanmar Training Development Expo 2016 Venue: Tatmadaw Hall, Yangon Date: 14 July 2016 Sphere Exhibits Myanmar Green Energy Summit 2016 Venue: Sule Shangri-La, Yangon Date: August 2016 Confexhub Group Global Water Conference 2016 Venue: Sule Shangri-La, Yangon Date: August 2016 Confexhub Group 3rd Myanmar Transport & Logistics Summit Venue: Yangon, Myanmar Date: September 2016 CMT BuildTech Mandalay Venue: Mandalay City Hall, Mandalay Date: December 2016 Sphere Exhibits 5

6 Tenders Ministry of Natural Resources and Environmental Conservation: Open Tender Myanma Pearl Enterprise under the Ministry of Natural Resources and Envrionment has invited an open tender to purchase the following items in Myanmar Kyats: No. Description Quantity 1) Bio Nucleus & Nucleus 12 Sets 2) Operation Instruments 5 Items 3) Equipment for underwater works 66 Sets Tender documents can be purchased at Myanma Pearl Enterprise commencing from 22 April Tender applications are to be submitted no later than 4 pm on 11 May Further information can be obtained by phone at +95 (0)