Myanmar Times: Business Boom expected to Myanmar - Luc de Waegh

Myanmar’s November 7 elections look set to change the business environment in the country. Expectations about the elections may be low but they might bring a new mindset to the governance of the country.Even in the existing business environment, Myanmar’s international reintegration through growing foreign direct investment (FDI) has begun. Though challenging, it is not impossible to develop accountable businesses in Myanmar and opportunities are seen to be growing.

The majority of reactions from senior executives (mostly western) who have visited Myanmar for the first time is: “This is much better than what I was expecting.” Rarely is it heard for an executive, or any visitor to state: “This is exactly what I was expecting.”

The first word that comes to mind when talking about doing business in Myanmar is sanctions. Since 1988, many countries have issued a number of sanctions against Myanmar. From my experience on the ground, the sanctions are – in their vast majority – at best ineffective and in most cases counterproductive. They have, however, helped deteriorate perceptions of Myanmar to the point of keeping most large companies away and even keeping development and humanitarian aid away.

With 55 million people, Myanmar ranks 24 in the world in terms of population. For many multinational corporations (MNC), Myanmar is the largest market – in terms of number of consumers – where they don’t have an active presence. The country provides access to the two most populated and fastest growing economies in the world, China and India. The population of neighbouring countries totals 2.8 billion, or 40 percent of the world’s population.

The integration process of the Myanmar economy has started.

In the four months between March and July 2010, about $16 billion of FDI were committed to Myanmar. This is as much as the total FDI committed during the previous 22 years. This figure does not include the recently confirmed Dawei deep-sea port project, which is estimated at $13 billion. Recent investments are mainly in oil and gas, electricity production and the mining sectors. China accounts for more than 65pc of recent investments. Thailand ranks a distant second at 18pc.

It becomes increasingly clear that while some countries hang on to their sanctions, others have opted for an accelerated economic engagement. This has the potential of being good news for the people of Myanmar, not only because prosperity is an important factor for social stability, but also because people’s main aspiration remains an improvement of their everyday material life.

There is however room for a better balance in the source of FDIs that would deliver stronger overall development perspectives. Western countries in particular have a role to play by allowing – if not encouraging – their first-class accountable multinational companies to invest in Myanmar. Earlier this year, Unilever, a large European consumer goods company decided to go back to Myanmar, after having pulled out eight years ago. This is not only creating hundreds of quality jobs and changing the life of thousands of ordinary Myanmar people, but is also raising the standards of the industry for the benefit of all consumers.

In 1993 a large UK-listed consumer goods company, British American Tobacco (BAT), commenced operations in Myanmar. BAT’s investment was a demonstration of the role large MNCs can play in the development process: Fair and competitive salary structures; health insurance; in some cases pension funds; opportunities for further training and development; exposure to the rest of the world (through training and temporary postings); equal opportunity practices; and so forth.

Listed MNCs must comply with increasingly strict disclosure regulations and greater transparency. They have only one set of standards that are applicable worldwide: These deal with the respect of the local laws, employment terms, corruption, treatment of the environment, CSR programs and more. In setting these new standards MNCs are leading by example: People would much prefer to work for companies that offer better employment terms and better development prospects and consumers prefer to buy products that are safe and guaranteed by accountable manufacturers. Other companies will have to adapt in order to stay in business.

The country’s legal system – inherited from the British – is working reasonably well. The British brought their basics of the English Common Law to India and codified it. The Laws in Myanmar were the same laws that the British passed in India with a few minor exceptions, but basically laws dealing with business and commerce are still intact. The Code of Civil Procedure originated as the India Act 1908, the Workmen’s Compensation Act as the India Act 1923. When Myanmar became independent in 1948, the names changed to Myanmar act. The Indian Company Law became the Myanmar Companies Law. Myanmar has been a member of the World Intellectual Property Organization (WIPO) since 2001. As such the country has committed to provide effective means of enforcing intellectual property rights.

In a recent case, where a local party registered a well known foreign brand and logo as its own in a local Registrar of Deeds in Myanmar, the Supreme Court in the appeal observed inter alia that the party that had registered the trade mark had no right to it as he had copied the trade mark of a foreign company and was not the party’s invention and therefore had no right to the brand and logo.

Qualified auditors practicing at international standards levels are available.

As for market research, MMRD (Myanmar Marketing Research and Development), the leading agency, is equipped to provide all market research services available in more developed economies.

But the brightest side of doing business in Myanmar is definitely the people. There is an abundance of committed men and women eager to learn, develop new skills and try their very best to contribute to the success of new ventures.

Things are changing in Myanmar on many fronts. Obviously a new form of government will take charge after the November 7 elections, but this is not the only change coming to Myanmar.

Myanmar’s isolation has undoubtedly led to deterioration in infrastructure and industries, but this has also provided opportunities for investment today. Thailand’s proximity has already enabled companies like ItalThai, PTTEP and CP to establish a growing presence.

Oil, gas and mining industries, alongside associated service industries, are set to expand in the coming years, buoyed in no small part by Thailand’s own domestic demands. Similarly, as Thai companies have expanded into neighbouring countries to the east, the agricultural sector, including manual and mechanical tools, pumps, fertilisers and crop protection, will provide lucrative returns in this largely agrarian society.

Fast moving consumer goods, the “affordable luxuries” also offer strong market potential with an existing consumer base and low entry cost. For Thai-based manufacturers there is the possibility of existing brand awareness created by intensive border trade, a scenario that is shared by other consumer goods including pharmaceuticals, white goods and electronics.

Given Myanmar’s professed moves toward democracy, leading to greater engagement by governments, businesses and aid agencies, the prospect of sanctions being eased or removed looms. If so, textile industries, and in general all labour-intensive, export-orientated industries will bloom, as will the tourism sector.

There are currently 90 flights weekly between Bangkok and Yangon. A successful completion of the first elections in 20 years would only build confidence and lead to further investigation of investment opportunities. As with business opportunities in Thailand, a sound corporate legal structure, trusted local partner and advisor combined with good diligence could yield lucrative returns for investors.

Luc de Waegh is the managing partner of West Indochina, an advisory firm that has specialised in developing businesses in Myanmar. He has 17 years experience of doing business in Southeast Asia, mainly in Myanmar and advises local and foreign companies on setting up, growing and selling their businesses.

Agency France-Presse: Myanmar refugees sets itself lit in Australia

Sydney - Refugees of Myanmar held in Australian immigration detention has been treated in hospital Monday after he attempted to set fire to himself, says refugee advocates.
The immigration Department has confirmed that a detainee was transported to hospital after a "small fire" North of the detention Centre Immigration in Darwin on 2 h 30 (1700 GMT Sunday), but that the person has been injured.

"We cannot speculate on the cause of the fire, but the inmate had no injury", a spokesman told AFP.

Since released "(They_have) and return to the centre," she says, adding that the federal police were investigated on the incident. The asylum seeker has been back to centre about eight hours after the incident.

Advocates since the said asylum seeker Resource Centre the inmate is Myanmar and had "burned himself last night in desperation' after eight months of uncertainty as to its application.

ASRC, said man had obtained refugee status, but his visa was made to be retained by the security checks.

"He was desperate to get out of detention because (he) fear for the life of her children at home and (he) powerless to help them in detention," ASRC, said on his Twitter feed. ""

"He was so afraid of his children, he has previously requested must be sent to the home page in spite of his own life in danger to save her children.

The man had "begged be freed or returned or said at least when it comes from detention" to define itself turns on, said the security issues.

The public broadcaster ABC, citing sources within the centre, also reported that the man was Myanmar and that he attempted to ignite.

Immigration officials would not comment on gender of the inmate, nationality or the status of their application.

Tensions are high in the centres of the immigration of the Australia after a record 6,500 refugees arrived by fishing boat fleeing from the Indonesia last year, which extends the capacity of the facilities. Most of Sri Lanka, Afghanistan and Iraq.

Protests and hunger strikes erupted recently after a refugee boat broken rocks remote Christmas Island, killing about 50 people, and Canberra announced a thrust to expel Afghan force rejected asylum.

New York Times: Myanmar opens Parliament for the first time since the 1980s – Thomas Fuller

Bangkok - General decision to Myanmar Monday convened the first meeting of the Parliament over more than two decades, a move they say full transition from the poor country towards multiparty democracy.
Journalists were prescribed by Parliament building when the session convened Monday morning under high security in the capital city, Naypyidaw, the Associated Press reported.

Officially the opening of Parliament two bedroom will result in the dissolution of the junta that ruled Myanmar since 1988, when the country was known as Burma.

But it does not appear to be the dawn of absolute democracy. A quarter of seats are reserved for military and party-backed military control over 80% of the rest, allowing generals keep effectively their power, albeit in a less hierarchical system.

"The army is staying in control, but some of them are taking off their uniforms," said Win Min, Professor at the University of Payap in Thailand, who is on leave in the United States.

A key question is so broad top of Myanmar, Than Shwe, will become President, work more powerful by the new Constitution, but requiring to resign from his post of Commander in Chief.

General Than Shwe, who crushed the uprisings and purged potential rivals in the army during its almost two decades in power depends on 78 Wednesday, according to a libretto by Government published three decades ago. (The military Government was so secret that even the anniversary of the leader of the high country of page is not known with certainty).

New system of Myanmar resemble a democracy more in shape than on the merits, analysts say, but with the possibility of more debate and inclusiveness as high at the bottom of the junta regime. Myanmar in exile news media reported that Parliament issues must be submitted by members of 10 days in advance and pass a verification process.

"I think it will be very open and democratic governance in these first five years," says Priscilla a. Clapp, who was the head of mission at the U.S. Embassy in Myanmar from 1999 to 2002. "But thanks to a system that is much more complex, inevitably competing centers of power will develop.

The opening of Parliament, following elections in November, is only a number of changes in Myanmar.

Daw Aung San Suu Kyi, won the Nobel Prize for peace and the dissident leader of the country, was released from house arrest, a week after the elections and now seeks to rebuild his pro-democracy movement. The military Government, meanwhile, is aggressively selling buildings, factories and corporations, especially for allies and members of the family of military leaders of the country. Privatization rush vaguely resembles the great wind up in Russia after the collapse of the Soviet Union.

Neighbouring countries responded by pushing more difficult to put an end to international isolation of Myanmar, including to lift economic sanctions imposed by the United States, the European Union and other Western countries.

Both houses of Parliament and representatives of the military will appoint three Vice-Chairpersons, one will be elected President and choosing a law firm. Names of members of cabinet potential circulating in Myanmar these days included many people who served in positions of power under the military regime.

Last Parliament meets in Myanmar by the rule of unique party of General Ne Win formally withdrew from politics in 1988 during a period of turmoil, but the country did not have a genuine multiparty since 1962, system when the military took power through a coup.

Reuters: As Myanmar opens Parliament, shadow of looms the junta on great - Aung Hla Tun

Naypyitaw - an elected Parliament convened to Myanmar Monday for the first time in half a century but inspired lean enthusiasm convinced skeptical audiences as it is just a smokescreen for the continued military rule.
More than 600 members completed two new "Hluttaws", or legislative chambers, the opening session. They are responsible for choosing first civilian President Myanmar 49 uninterrupted years of military dictatorship has ushered in a coup in 1962.

The junta praised Parliament as a new dawn of democracy but critics reject it as a joke that leaves the authoritarian generals same in control. The new Government is equally capable of suppressing dissent as the former.

Lawmakers elected Presidents and vice Presidents for each of the two rooms in the opening session, with three of four positions for military retirement, according to several parliamentarians, who asked to remain anonymous because with media was liable to two years in prison.

The big surprise was junta number three Thura Shwe Mann, a career soldier honoured for bravery and tipped by many politicians and analysts as a presidential candidate made possible the President or the Chairman of the lower House.

"There is speculation among us Thura Shwe Mann will become President, that our party has loaded we elect the President of the Chamber, low", said the Member of the main political party, trade union solidarity and Development Party (USDP), which is a proxy for the military Government.

The army has a reserved quota of one quarter of the seats in both houses, as well as in regional parliaments. Leaving Parliament dominated by serving or loyal to the junta supremo Than Shwe who think of many retired military analysts could take the position of President.

Police patrol roads and legislators visited assemblies Naypyitaw, sprawling capital, luxury cars built from scratch, there are only four years, where the former Burmese military leaders have isolated themselves about 320 km (200 miles)-the largest city and former capital Yangon.

But there is barely a ripple of interest among the ordinary Burmese, most of which see change as purely cosmetic.

"We have no idea and no time for taking the trouble to think about these stuff", said worker 38 year-old in Naypyitaw when asked for his views on the Parliament.

Journalists were prevented from attending the session and cell phones have been banned in the rooms.

After a general election on November 7 that has been strongly criticized and abroad for irregularities, the lower and upper houses will be dominated by the USDP.

WE DON 'T CARE WHO BECOMES PRESIDENT. "

The National Democratic Force, the greatest feast of democracy promotion that participated in the election of November, won 12 664 seats just.

League promotion of democracy leader Aung San Suu Kyi national pour la démocratie boycotted the election after having won the previous survey in 1990 by a landslide, a result the soldiers ignored.

Despite his release from house arrest after the election, Suu Kyi and his party dissolved for the boycott of the election, have no influence on the Parliament, although it remains very popular.

While Western countries have severely criticized the Parliament and showed little sign of lift the sanctions imposed in response to violations of rights, elections have been acclaimed by China Thailand, India and Singapore, is a big investor.

Myanmar neighbors have wanted to take advantage of its rich natural resources. Reserves proved, for example, doubled in the last decade of 570 billion cubic meters, equivalent to close to one-fifth of the Australia, according to the BP Statistical Review.

China's official Xinhua News Agency has welcomed the start of Parliament as a "new era", in which soldiers still play a role "with its own special characteristics.

Ministry of Foreign Affairs of the Japan said it would be "closely observe" the direction of the Parliament and called new Government when he took office, to release political prisoners and to become more involved with the international community.

Most of the people interviewed by Reuters said that they remain much more concerned about the struggles of everyday life with deplorable country utilities, frequent power cuts and the Chronicle of economic mismanagement.

At least 32% of the approximately 50 million people in Myanmar lived below the poverty line.

We Don "t care who becomes President until he can create better conditions of life", said the worker, who only speak frankly to the condition that his name did not report.

"Things couldn't be worse now and continue to raise prices."

Nobody has publicly expressed interest in becoming the head of State and analysts believe that the President, two vice presidents and Ministers have already been decided by the junta.

Many believe that the 78-year-old Than Shwe is too fearful to end his reign of 18 years and will be quietly retired Army over the next few days he is eligible to take the omnipotent Presidency itself.

Other analysts, however, believe that the strong man may have reserved the first positions for its protected and the confidants and intend to resign and pull the strings behind the scenes.

(Additional reporting by Ben Blanchard in Beijing;) Written by Martin Petty; (Editing by Robert Birsel)

Thai News Agency any: two Thai soldiers wounded by artillery from Myanmar clash

Tak - Two Thai soldiers were injured after an artillery of a confrontation between Myanmar and ethnic Karen troops exploded landing on the Thai side in the northern border of Tak province Sunday evening.
Third working Naresuan, Monday, group commander Lt Gen Wannatip Wongwai and Maj Gen Kasem Thanaporn, Army Commander visited PTE Benjapon Paokantha, 23, at Mae Sot district hospital.

He and his companion PTE Winai Damrongpon patrolling the border when the shell of fighting between Myanmar Tatmadaw troops and forces of Democratic Karen Karen Buddhist Army (DKBA) landed in front of their Humvee armed with heavy machine-gun, doing them duty for patrolling the villages along the Valley of the Moei river area of heavy fighting.

The Benjapon soldier was seriously injured and his right arm was broken, while the Winai soldier was wounded in his right arm. They are now treated Phop Phra district hospital.