Thura NewsViews. Myanmar Economics and Politics. Weekly Newsletter. Issue 243, November 17, Politics

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Issue 243, November 17, 2016 Thura NewsViews Politics Annan expresses concern about northern Rakhine The former United Nations Secretary General Kofi Annan has expressed deep concern over the most

1 Issue 243, November 17, 2016 Thura NewsViews Politics Annan expresses concern about northern Rakhine The former United Nations Secretary General Kofi Annan has expressed deep concern over the most recent escalation of violence in northern Rakhine State, which took place at the weekend according to state-run media reports. Violence first occurred in the restive region on October 9, when three police outposts were attacked and dozens of security officers were killed. Since then, the Border Guard Police and the armed forces have launched a strong security crackdown, which has led to a halt in humanitarian aid to the region and fuelled many rumours that have been very difficult to verify. The fresh outbreak of violence lasted almost a week, according to reports, and led to the death of 69 violent attackers and the arrest of 234, the military s True News Information Team was quoted as saying by Reuters. Ten policemen and seven soldiers were also killed in the clashes, the report said. Kofi Annan, who chairs a commission attempting to find long-lasting solutions in Rakhine State, released a statement expressing his concern and urging security services to act in full compliance with the rule of law. Some rights groups have accused security forces of using excessive force in their operations, which the government denies. Media officials detained in latest defamation case Two officials from a Yangon-based newspaper were detained by police last week after allegedly defaming the Chief Minister of Yangon Region. U Than Htut Aung, chief executive of Eleven Media Group, and the newspaper s editor, U Wai Phyo, were arrested after being sued by the Yangon Region government. The charge is related to a Facebook post written under Than Htut Aung s name that alleges that a politician took bribes. Although the politician is unnamed, the post appears to have been directed at senior NLD official and Yangon Region Chief Minister U Phyo Min Thein who said the post was intended to defame my personal integrity. U Than Htut Aung and U Wai Phyo are the latest to be charged under section 66(d) of the 2013 Telecommunications Law. The law was enacted to regulate the growing telecommunications industry, but the broadly worded 66(d) clause has been used to detain and arrest a couple of citizens in recent months. NLD member U Myo Yan Naung 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 November Highlights Commander-in-chief of Myanmar s armed forces Senior General Min Aung Hlaing has recently visited Italy where he met with senior military officials from other countries. Myanmar s internet freedom has improved somewhat this year, but it has retained its status of not free, said cyber watchdog Freedom House. Nearly five million people in Myanmar suffer from some form of hepatitis, health officials say.

2 Thein was also arrested earlier this month for a post on social media that criticised the country s military. Rights groups have expressed concern that critics of the government are still being arrested, even after the new government, led by State Counsellor Daw Aung San Suu Kyi, came to power. Economy Myanmar real estate investors looking abroad Some of Myanmar s property investors are beginning to look at projects abroad, according to news reports. U Kyaw Min Zin, director of Yangon-based KAE Alliance, was quoted in the local news that his company had sold 18 properties in Malaysia this year, and two in Singapore, and that investors had shown an interest in international real estate over luxury housing within Myanmar. Some of the recent sales have been at a mixed-use development called Forest City in Malaysia s Iskander, a development region in the country s Johor Region. Forest City is a development on 1,386 hectares of land that is a joint-venture between a Malaysian and Hong Kong developers. Kyaw Min Zin said that interest from Myanmar investors to look abroad began to increase in late 2015, with Singapore and Malaysia, as well as Thailand, proving popular investment destinations. Prospects are improving because of better connections between Myanmar and the rest of Southeast Asia, said Kyaw Min Zin. Singapore firms wary of investing in Myanmar Although Singaporean firms are interested in investing in Myanmar, many are still concerned about making commitments into the country because of a lack of clear policies, a media report in the island-state has said. Ho Men Kit, chief executive of the Singapore Business Federation, was quoted as saying in The Straits Times that while firms in the country are interested in Myanmar, that enthusiasm has not necessarily translated into investments. Singaporean investments in Myanmar from January to September this year currently stand at US$ Myanmar in Figures GDP (PPP): $283.5bn (2015) GDP (official ex.rate): $66.98bn (2015) GDP growth rate: 8.3% (FY proj.) Population: 51.4mn people (2014) Inflation: 11.5% (2015) Foreign trade: $22bn (2015) FDI: $64bn (31/07/2016) International reserves: $9.4bn (Dec 2015) CBM rate Kyat/$ = 1290K/1$ (17/11/16) 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. 2

3 million, according to figures from the Directorate of Investment and Company Administration (DICA). That is a significant drop from a figure of US$ 2.03 billion for the same period last year. The Straits Times article noted that the DICA figures differ from those from Singapore s Department of Statistics, which showed the figure to be US$ 1.93 billion in Mr Romain Caillaud, from FTI Consulting, was quoted as saying that this was due to the fact that DICA figures include both Singaporean companies and companies from other countries that have structured their investments from there. He added that Singaporean investments in Myanmar had begun to slow down since last November, when Myanmar held its general election. Many investors have been waiting for new laws to pass, with the most notable being the Myanmar Investment Law, which was passed last month and will be enacted by April Myanmar teak trader prosecuted in Sweden A trader of Myanmar teak has been prosecuted by Swedish authorities for not conducting thorough due diligence when the company imported the product into the European Union. Sweden s Forestry Agency conducted an investigation and found that a company named as Almtra Nordic was unable to demonstrate who or where the timber it had imported had come from, prior to being purchased from its supplier, the state-owned Myanmar Timber Enterprise (MTE). The Swedish courts have agreed that documentation provided by MTE does not satisfy the requirements of the EUTR [EU Timber Regulation], setting a precedent in which all EU member states should follow, said Peter Cooper, forest campaigner for London-based Environmental Investigation Agency (EIA). As a result of the ruling, Almtra Nordic has received an injunction that prevents it from placing Myanmar teak on the EU market unless it can identify and mitigate the high risks of illegality involved, which is part of the EUTR due diligence requirements. In a press release from EIA, Cooper was quoted as saying that Myanmar teak cannot be legally placed on the EU market until MTE addresses transparency issues in the supply chain. Myanmar teak is popular particularly in the super yacht industry where teak decking is regarding as an essential material and luxury status symbol the press release said. Companies and Investments Turkish Karpower plans Yangon power project Turkey s Karpower is planning to move a major power barge to Myanmar in April next year that could supply a fifth of the country s total electricity requirements. A story in the local news said that the 300-metre barge will travel from the Turkish city of Istanbul to Yangon, where it will be located in Thilawa and provide 300 megawatts to the city for five years. We are not using turbines. These are engines that are running on natural gas and low-suplhur HFO (heavy fuel oil) for producing electricity under a dual fuel system, Zeynep Harezi from Karpower was quoted as saying. He added that the company is planning to set up lines from Thanlyin-Thaketa, to transport the electricity produced into the commercial capital. Malaysian firm to form packaging JV in Myanmar Malaysian company Daibochi Plastic and Packaging Industry has reached a joint-venture agreement with Myanmar Smart Pack Industrial (MSPI) to provide services for the domestic and international market. Under the terms of a Memorandum of Understanding (MoU) between the two companies, Daibochi will invest US$ 6.8 million percent in the venture for a 60 percent stake. The agreement is Daibochi s first outside its home country, reports say. Daibochi s managing director Thomas Lim said the company will take control of the existing MSPI production facilities. An additional US$ 5.5 million will be invested over three years to enhance the factory s production, capacity, quality and efficiency. Mr Lim told the local media that the company has exported to Myanmar in small amounts in the past, but its first priority under the new agreement would be to fulfil demand within Myanmar. Thereafter we will look to securing more customers from Southeast Asia, he said. 3

4 Events Name Details Organizer/Ministries Contact Information 4th Myanmar Oil, Gas & Power Summit Venue: Meila Hotel, Yangon Date: November 2016 CMT 6th PET Asia Outlook Venue: Park Royal Hotel, Yangon Date: November 2016 CMT Myanmar Security Expo 2016 Venue: Tatmadaw Hall, Yangon Date: November 2016 MP International (MPI) Startup Weekend Yangon Venue: MICT Park, Yangon Date: November 2016 Kanaung Hub bmdwmm/ Offshore Convention Venue: Sule Shangri-La Hotel, Yangon Date: November 2016 Neoventure Corporation Myanfood 16 Venue: MIDA Ground (Next to Tatmadaw Hall, Yangon Date: November 2016 Tel: +95(0) Myanhotel 16 Venue: MIDA Ground (Next to Tatmadaw Hall, Yangon Date: November 2016 Tel: +95(0) CommuniCast 2016 Date: 07 December 2016 Allworld Exhibitions Tel: +95(0) Myanmar Satellite Forum & Exhibition Date: 07 December 2016 Allworld Exhibitions Tel: +95(0) Agri Livestock 2016 Venue: Tatmadaw Hall, Yangon Date: December 2016 Myanmar Supply Chain Summit Date: 13 December 2016 Chain Media Tel: Myanmar Oil and Gas Summit Venue: Sedona Hotel, Yangon Date: January 2016 Oliver Kinross Ltd +44 (0) BuildTech Mandalay Venue: Mandalay City Hall, Mandalay Date: February 2017 Sphere Exhibits 4

5 Tenders Ministry of Electricity and Energy: Invitation for bids The Ministry of Electricity and Energy has received financing from the World Bank towards for the National Electrification Project. As part of the project, the Ministry now has invited sealed bids from eligible bidders for the supply of following items: # Description Quantity 1) 11/0.4 kv 50 kva 2) 100 kva 3) 315 kva 4) 33/ kva 5) 200 kva 6) 315 kva Total 5,389 The goods are to be delivered to multiple destinations of all Regions and States of Myanmar during 2017 to The goods will be grouped into 10 lots and bidders may submit bids for any one or more than one. Interested eligible bidders may obtain further information from Project Manager, Office No. 27, Ministry of Electricity and Energy. A complete set of bidding documents on CD in English language can be purchased at the price of MMK 100,000 upon the submission of a written application to the above address. Bids must be delivered before 31 December Further information can be obtained by phone at +95 (0) Ministry of Industry: Invitation for Expression of Interest (EOI) No. 14 Heavy Industry (Thagaya) (Multipurpose Diesel Engines Factory) and No. 15 Heavy Industry (Thagaya) (Earth Moving Equipment Factory) under the No. 1 Heavy Industries Enterprise, Ministry of Industry are intended to cooperate with Local (or) Foreign Entrepreneurs in a PPP (JV, Lease, etc). Interested entities can collect required documents at Office No. 30, Planning Department, No. 1 Heavy Industries Enterprise, Ministry of Industry. Interested companies shall submit their Expression of Interest (EOI) no later than 3pm on 5 December Required Documents: Valid Certificate of Incorporation Memorandum of Association and Articles of Association of Company Name of Foreign Technical Cooperator Further information can be obtained by phone at +95 (0) ,

Thura NewsViews. Myanmar Economics and Politics. Weekly Newsletter. Issue 240, October 27, Politics

Thura NewsViews. Myanmar Economics and Politics. Weekly Newsletter. Issue 240, October 27, Politics Issue 240, October 27, 2016 Thura NewsViews Politics Challenges ahead in peace process, warns think-tank Despite some progress since the new government came to power, those involved in the country s peace