Issue 212, April 07, 2016 Thura NewsViews Politics NLD pushes through state counsellor bill despite military protests The National League for Democracy (NLD) has pushed through a State Counsellor bill in the lower house, which will create a new post for Daw Aung San Suu Kyi, despite strong protestations from parliament s military contingent. In a sign of a potential rise in tensions between the NLD and the military, Brigadier General Maung Maung called the move a form of bullying, as military appointees in parliament which make up a quarter of all seats boycotted the vote, which was easily passed because of the NLD s dominance in parliament. Having been approved by the upper house last week, the bill was signed by President U Htin Kyaw into law. The new post of state counsellor for Suu Kyi is regarded as an effective prime minister post. The move is regarded by observers as a response to article 59(f) of the constitution, which bars Suu Kyi from the presidency because her two sons are foreign nationals. The military had attempted to amend the title of the new role to President s Counsellor but this was rejected in a scenario that was a reverse of the debates under the previous parliament, when the military-backed Union Solidarity and Development Party (USDP) could shut down amendments due to its huge majority in parliament. The NLD s landslide victory in November, in which it won 80 percent of all available seats in the lower and upper houses, has given the party a majority in both houses, despite the military s guaranteed involvement in political affairs. Suu Kyi has also relinquished two of the four ministry posts that she was previously given. She will remain minister of the president s office and of foreign affairs, but has been replaced in the ministries of energy and education. Suu Kyi meets Chinese foreign minister Daw Aung San Suu Kyi has met with China s foreign minister Wang Yi in her first high profile meeting since her party, the National League for Democracy (NLD), took power in parliament. Suu Kyi told reporters after their meeting that the controversial Myitsone Dam project, one of the early challenges for the new government, was not discussed and that the meeting had only been about building greater friendship between the two countries. We didn t discuss anything in detail. She added that she had not yet read the contract for the billion dollar contract for the Myitsone Dam, which was surprisingly sus- Thura Swiss Ltd. Economic Research Shwe Hinthar B 307 6 1/2 Miles Pyay Road 11 Qtr. Hlaing Tsp. Yangon, Myanmar Phone +95 (0)1 654 730 Fax +95 (0)1 654 733 info@thuraswiss.com www.thuraswiss.com Subscription at: www.thuraswiss.com/ newsletter/newsletter-latestissue April Highlights Government announces that remaining political prisoners are expected to be released soon. Forever Group has signed a deal with Thaicom to boost its digital delivery and high definition television coverage. Myanma Posts and Telecommunications (MPT) has launched a new web portal called LoTaYa for its users. A re-shuffle in the Central Bank of Myanmar (CBM) has seen it halve the number of departments.
pended by former president U Thein Sein for the duration of his term in 2011. Their meeting was part of Wang s two-day visit to Myanmar. China had a close relationship with the military regime, but Myanmar s reform process has been a sign to some that the government is keen to move closer to countries such as the US and Japan. During his visit, Wang Yi pledged Beijing s support for the new government. Thein Sein ordains as monk Former president U Thein Sein is undergoing a short stint as a Buddhist monk just days after he handed power to the new government. Thein Sein ordained on April 4 at Dhamma Dipati monastery outside Pyin Oo Lwin, on the outskirts of Mandalay. Photographs on social media show the former general with his head shaved and dressed in the traditional saffron robe. In an article in staterun newspaper Myanmar Ahlin it was said that one of the country s most respected monks Sayadaw Sitagu had urged ex-president Thein Sein to enter into the Buddhist monkhood after he attended the World Buddhist Conference. Thein Sein was in the past quoted as saying that he was too busy with presidential duties to ordain, but would do so once his term finished. Stays in monasteries are a common occurrence in Myanmar, which is predominantly Buddhist. Economy Report says Myanmar s forests are largely depleted Environmental organisations have said that Myanmar s forest reserves are largely exhausted and have called for the dismantling or privatisation of the state-owned Myanmar Timber Enterprise (MTE). The findings were detailed in a report called Legally and Illegally Logged Out, which analysed Myanmar s timber industry. One of the major issues in Myanmar s timber trade is corruption, said Professor Oliver Springate-Baginski, of the University of East Anglia in the United Kingdom, one of the report s authors. At a press conference, he said several sources had admitted to paying large bribes to the military and MTE officials. The report said that Myanmar s forests have been logged at high levels for decades but that the plunder reached a final crescendo in the felling season of 2013-2014 as it became clear the opportunities provided by the military era were ending. The government official banned the export of raw timber in April 2014, but the product is still transported illegally across the border, often into China. The illicit trade is made easier by porous borders due to ongoing conflict between the Tatmadaw, the official name for Myanmar s armed forces, and ethnic armed groups. Springate-Bagininski, citing Forestry Department data, said Myanmar had 37 million teak trees of 8-inch diameter or more in 1996. That figure had fallen to 7 million by 2010. Companies and Investments UMEHL becomes public company Union of Myanmar Economic Holdings Limited (UMEHL), one of two militarylinked conglomerates, has announced that it has transitioned into a public company. UMEHL was founded in 1990 and has interests in beer, banking and transport, among others. According to state-run media, UMEHL will transform from a special company under the 1950 Special Companies Act, to a public firm, 2 Myanmar in Figures GDP (PPP): $244.3bn (2014) GDP (official ex.rate): $65.29bn (2014) GDP growth rate: 8.3% (FY2015-16 proj.) Population: 51.4mn people (2014) Inflation: 8.4% (2015) Foreign trade: $24bn (FY2013-2014) FDI: $56.5bn (30/04/2015) International reserves: $8.7bn (Dec 2014) CBM rate Kyat/$ = 1192K/1$ (07/04/16) For advertising with Thura Swiss please contact us by email info@thuraswiss.com or by phone +95 (0)1-654 730 Please note that our advertisement contracts are based on a subscription of a minimum of 4 weeks.
under the 1914 Myanmar Companies Act. A report in The Irrawaddy, quoted U Soe Tun, chairman of the Myanamar Automobile Dealers Association and vice president of the Myanmar Rice Federation, as saying the move would be good as UMEHL will now have to follow the rules of other companies. It will be more transparent and there will be equal chances for other businesses, he said. UMEHL s business interests include Myanmar Brewery, Myawaddy Bank and Myawaddy Trading. Chinese firm wins approval for billion-dollar refinery China s state-controlled Guangdong Zhenrong Energy Co has been granted permission by the Myanmar government to build a US$ 3 billion refinery in Myanmar s south. The project also includes an oil terminal and storage and distribution facilities and could be one of the largest foreign investments in Myanmar in decades. The Chinese firm was granted approval to build the 100,000 barrels-per-day refinery in Dawei by the Myanmar Investment Commission (MIC) before the handover of power to the new government, a report in Reuters said. Dawei is the site of a long-delayed planned Special Economic Zone. We are confident as [the project] has taken into consideration interests from all parties and the refinery will benefit the local people as well as the economic development of the country, said Li Hui, a vice president of the Chinese firm. Local government proposes cancellation of Parkway hospital project A parliamentary committee in the Yangon Regional government has recommended the suspension of two projects approved under the previous government, including a private hospital in downtown Yangon. According to a local report, U Kyaw Zeya, secretary of the Yangon Region Finance, Planning and Economic Committee, called on the projects to be halted and reviewed by the new administration, which is headed by Yangon Region chief minister U Phyo Min Thein. Both projects were approved under former regional minister U Myint Swe, who is now the vice president nominated by the military. The larger of the two projects is the Parkway Yangon Hospital, which was approved towards the end of Myint Swe s term. The private hospital was approved on public land near Yangon General Hospital and has already been the subject of protests, as medical professionals believe the land should be used as a public facility. The other project is a Western Park Restaurant approved on three acres of land in People s Park, next to the Shwedagon Pagoda. The new government, led by the National League for Democracy, has promised to crack down on what it regards as widespread corruption. 3
Legal Box by Duane Morris & Selvam LLP Appointment of new Ministers and Consolidation of Ministries in Myanmar In a new move to streamline government activity, a re-organisation of the Union Ministries was announced on March 17th, 2016, reducing the overall number of Ministries from thirty six to twenty one. In a further development, on 24 March 2016, the Union Parliament approved the appointment of eighteen key Ministers to form the new government. Some of these Ministers will have oversight of more than one major Ministry. The merger of the Ministry of Finance and the Ministry of National Planning is expected to exploit synergies and facilitate investment. The integration of the Ministries related to transportation and communications will benefit major projects, a number of which are still in progress. Finally, the merger of the Ministry of Electric Power and the Ministry of Energy will help to streamline the process concerning the development of new power projects. It is expected that consolidating the Ministries will promote an easing of administrative processes concerning foreign investment and will hopefully be of significant benefit to current and future projects. We remain optimistic. Through our office in Yangon, Duane Morris & Selvam advises corporations on investment, business and regulatory processes in Myanmar. For further information, please contact Mr Krishna Ramachandra (kramachandra@duanemorrisselvam.com), Ms Babita Ambekar (bambekar@duanemorrisselvam.com) or Mr Mark D Alelio (MDAlelio@duanemorrisselvam.com) or visit www.duanemorrisselvam.com. Duane Morris & Selvam is recognised as a top tier law firm for Myanmar related work The Legal 500 (2016). 4
Events Name Details Organizer/Ministries Contact Information International Conference on Industrial Electronics and Electrical Engineering Venue: Yuzana Garden Hotel Date: 22 April 2016 Science Plus info@scienceplus.nl Myanmar Wood (International Wood Processing Exhibition) Venue: Tatmadaw Hall, Yangon Date: 12-15 May 2016 Myanmar Industries Association steven@chanchao.com.tw marketing@chanchao.com.tw 3rd Annual Myanmar Upstream Oil & Gas Summit & Exhibition Venue: tbc, Nay Pyi Taw Date: 17-19 May 2016 CWC Myanmar myanmar@thecwcgroup.com Tel: +44 20 7978 0025 3rd Global Oil & Gas Myanmar Venue: Sule Shangri La, Ygn Date: 19-20 May 2016 ITE Group Tel: +95(0)9-420025684 3rd International Medical, Hospital, and Pharmaceutical Exhibition Venue: Tatmadaw Exhibition Date: 19-21 May 2016 VINEXAD medipharmexpo@vinexad.com.vn Global Water Conference 2016 Venue: Sule Shangri-La, Yangon Date: 23-24 May 2016 Confexhub Group gwendoline.yap@confexhub.com Myanmar International Education and Career Fair Venue: Tatmadaw Hall, Yangon Date: 24-26 June 2016 Dagon Exhibitions dagonexhibitions@gmail.com BuildTech Yangon 2016 Venue: MCC, Yangon Date: 26-28 May 2016 Sphere Exhibits tanariel@sph.com.sg Myanmar Banking & Finance Conference Venue: Yangon, Myanmar Date: 28-29 June 2016 Sphere Conferences Tel: +65 6848 6055 Myanmar Training Development Expo 2016 Venue: Tatmadaw Hall, Yangon Date: 14 July 2016 Sphere Exhibits tanariel@sph.com.sg Myanmar Green Energy Summit 2016 Venue: Sule Shangri-La, Yangon Date: 16-17 August 2016 Confexhub Group gwendoline.yap@confexhub.com 3rd Myanmar Transport & Logistics Summit Venue: Yangon, Myanmar Date: 28-29 September 2016 CMT leelin@cmtsp.com.sg BuildTech Mandalay Venue: Mandalay City Hall, Mandalay Date: 8-10 December 2016 Sphere Exhibits tanariel@sph.com.sg 5
Tenders Ministry of Agriculture, Livestock and Irrigation: Expression of Interest The Department of Rural Development under the Ministry of Agriculture, Livestock and Irrigation has requested an expression of interest for Mini-grid implementation Advisor (individual consultant) to assist the department-project Management Office to efficiently and effectively perform its day-to-day management of the implementation of the Mini-grid Sub Component in the National Electrification Project. Interested individual consultants must provide information indicating that they are qualified to perform the services (CV with academic background, experiences in similar assignment, knowledge of local conditions (if any), etc.). The Advisor will be an individual professional with significant renewable energy mini-grid expertise. The specific qualifications are as follows: At least professional engineering qualifications and/or a master s level degree in a relevant field More than five years experiences mini-grid electrification with experience in project management, mini-grid networks and power system technologies, in particular solar, diesel, mini-hydro, biomass gasifiers and hybrids. Experience in or knowledge in assessing training needs and in establishing training programs in related area would be an advantage. Fluency in written and spoken English is required. Fluency in Myanmar language will be an advantage., but not required. Interested individual consultants may obtain the Terms of Reference at office No.14, Department of Rural Development, Ministry of Agriculture, Livestock and Irrigation, Nay Pyi Taw from 9am to 4:30pm. The expression of interest must be delivered by registered mail or by email to the address no later than April 28, 2016. Further information can be obtained by phone at +95 (0)67-409529. 6