acumen magazine november 2013

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CEO / Chief EditorDr. Htet Zan Linn

DirectorDr. Hein Thu Aung, Tin Tun Kyaw

Executive EditorPhyo Wai

EditorsHein Zaw, Khin Win, Khaing Minn Nyo

ContributorsHein Zaw, Myitmakha, Dr. Tin Maung Kyi,

Naing Thit, Mikael Knudsen,Khaing Minn Nyo

CoverHatt Kawt

DesignersAung Aung (AN Computer), Thaw Tar Oo

Computer OperatorZin Wai Wai Shein

Marketing DepartmentJanuary Khine Mon, Naw Keziah, Yadanar,

Nan Mo, May Hsu Mo Mo

PhotographersAung Kyaw Moe (New Image)

Hein Zaw, Khaing Minn Nyo

Publisher and CopyrightDr. Htet Zan Linn

Printer

Editorial BoardACUMEN

[email protected]

[email protected], [email protected],

[email protected], [email protected],

AdvisorsAdvisorsAdvisorsAdvisorsAdvisorsProf. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet (President's Economic Advisor)

Prof. Maw ThanProf. Maw ThanProf. Maw ThanProf. Maw ThanProf. Maw Than (Rector (Ret), Yangon Institute of Economics Yangon)

Soe Tint AungSoe Tint AungSoe Tint AungSoe Tint AungSoe Tint Aung (Special Consultant for Advocacy, PSI Myanmar)

Dr. Tun LwinDr. Tun LwinDr. Tun LwinDr. Tun LwinDr. Tun Lwin (Consultant, Myanmar Climate Change Watch,Tun Lwin Foundation)

Than LwinThan LwinThan LwinThan LwinThan Lwin (Deputy Governor (Ret), Central Bank of Myanmar)

Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw (Principal, Device Business Management Academy)

Grace Swe Zin HtaikGrace Swe Zin HtaikGrace Swe Zin HtaikGrace Swe Zin HtaikGrace Swe Zin Htaik (Media Advocacy Advisor, PSI Myanmar)

OfficeNo. 24/26, 4B-C, Race Course Condo, South Race Course Street, TAMWE TOWNSHIP, YANGON

Tel : (+959) 420033355 ~ 66 ~ 77 (Hot Line), (+959) 73045140, 49317457, 73143313, (+951) 8603886, 8603887

Editor’s Note

It is hard to say with any certainty what changes the next month will bring. Butit is our commitment to try our best to make the readers get the best documen-tation and analyses of the developments in Myanmar. This South East Asiannation has been undergoing profound and rapid changes in the past couple ofyears. Still there are several issues that need to be addressed urgently and thecrucial thing are the good faith and efforts of all the stakeholders. On top ofthem is the issue of 2008 Constitution followed by national reconciliation andrule of law. To create an investor- friendly business environment, it is no doubtthat political stability is a pre-requisite. The world today is experiencing anever-greater need for energy. Developed and developing countries are compul-sively looking for energy sources worldwide and Myanmar has been an obvi-ous nation rich in natural resources. This issue of Acumen looks at this politi-cally important energy sector in-depth from many different angles including theuse, management, transparency, people's rights and federal system of naturalresources. It has also discussed how the natural resources are impacting on thepeace and constitution of this nation of 60 million people. Myanmar will bebusier at least in the next two years. She will be hosting SEA Games in 2014and taking the Asean chair the following year. Tourism industry will definitelysee far better opportunities as well as challenges. This month, we have includedan interesting tourism piece called the ‘‘Trend of Riverine Cruise in Myanmar’’.It was quite a coincidence that all major competitors in this industry happen tobe all women entrepreneurs while women representation has been quite low inother areas including politics. Other interesting stories include ‘‘How free canMyanmar be?" and ‘‘Is Myanmar a mysterious country for foreign investors?"among others. We do hope you will enjoy reading this November issue like theprevious ones.Thank you! A

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ACUMEN ⏐ 11

‘‘The mindset of leadership is the determination to serve,not to lead, and it is the determination and the commit-ment to serve that decides who is the real leader, andnot the desire to be a leader.’’

Daw Aung San Suu Kyi

Chairperson

National League for Democracy Party

‘‘The remaining two years of this Parliamentary term offive years will be up soon. But land issues will remain inthe next term of parliament and government. At present,we are trying to be better administration all the issuesfrom previous military government.’’

U Khine Maung Yi

Member of Land Confiscation Investigation Commission

oicesV

‘‘To reform for the development of a country, one or two years is not enough. We aretrying hard for democracy transformation in these two years that we never have before.To reach better development, we have to try hard for next four or five years.’’

U Moe Myint Kyaw

Secretary-General

Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI)

‘‘United States ofAmerica was one of thecountries holdingsanction on Myanmar fora long time. It will be amiracle that they did notnotice that US$11 billionis in the bank.’’

U Ye Htut

Deputy Minister of Information

‘‘List of ownership by each governmental official includeshouse, land, vehicle, jewelry, and money in banks, have toreport in sealed envelope to the President. ’’

U Soe Thein

Union Minister at President Office

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12 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m September 2013

Photo Feature

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ACUMEN ⏐ 13

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News in Brief

14 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m November 2013

Japanese airline startsTokyo - Yangon

direct flight

The Japanese major airline, All NipponAirways (ANA), has begun Yangon-To-kyo route since early September, an offi-cial said at the Myanmar-Japan Associa-tion celebration at Sedona in Yangon.

The airline used Boeing 767-300 ERairplane which can carry 202 passengersof which 35 are business class. After 12years' suspension, ANA was recommenc-ing the regular direct flight between To-kyo and Yangon thrice a week. Thereare a total of 22 international airlines fly-ing to Myanmar and eight airlines areoperating domestically. A

German helps threesectors of Myanmar

development

During a visit to Myanmar in Februarylast year, German Federal Minister Niebelannounced that German International Co-operation (GIZ) would further expand sus-tainable economic development in threesectors-promoting vocational training,strengthening the private sector and de-veloping financial sector.

In promoting vocational training sec-tors, in strengthening the TVET systemproject aims innovative strategies for vo-cational training have been tested in prac-tice and incorporated into the reform pro-cess of Myanmar's vocational training andeducation system.

To help develop the financial sector,GIZ will offer a loan of 4.5 million Euros(US$5.82 million) to Myanmar small andmedium enterprises (SME) realizing thatSMEs play a key role of country's sustain-able economic development. GIZ believesthat SMEs will be able to drive economicgrowth and social development in Myan-mar.

Last August, GIZ had a discussion withMyanmar businessmen for technical helpof Myanmar tea development and its in-ternational market. Now, the GIZ is imple-menting two projects- Strengthening theTVET System and Financial Sector De-velopment in Myanmar and it will be fin-ished in 2015. A

Government pledgesfor Kyauk Phyu SEZ

securityMyanmar government has been identify-ing the economic potentials to contributeto the country's economic developmentand is committed to develop Kyauk PhyuSpecial Economic Zone in Rakhine State.

The SEZ is under the new law in-cluding free trade zones, tax incentivesand other attractive offers for the inves-tors.

Dr. Mg Maung Thein, Deputy FinanceMinister and Vice Chairman of the KyaukPhyu SEZ Bid Evaluation and Awarding

Committee, said: ‘‘The conflict is not huge,not a gigantic problem. So there are someproblems but I think that they are notinsurmountable problems. It can be tack-led in due course. That is one part. An-other part is that this area is quite im-mune from those crises."

The SEZ is one of the most importantinvestment zones of the country. Thilawaand Dawei SEZs in southern part of thecountry are well known projects. Thegovernment will ensure to be stable andpeaceful for investors. The clashes be-tween Bengali Muslims and ethnic Ra-khine are under the control of Martial Lawbut effects of the law impact more thannorthern part of the state.

The Kyauk Phyu SEZ expects to seean initial investment of US$277 million,with the first phase of development duefor completion in 2016. The governmentcalls open tenders since last year. A

KBZ wins two awardsthis year

The Ministry of Finance announced thelist of top 100 highest taxpayers in Myan-mar on 14 September. Among those, Kan-bawza Bank was awarded the highesttaxpayer for 2012-2013 financial year.

Last June, Kanbawza Group was cho-sen the Best Corporate Governance awardfor 2013 by World Finance Magazine forthe first time to a Myanmar bank alongwith AECOM from USA, South Korea-based Samsung, Phillips from the Nether-lands and Glaxo Smith Kline from UK.

Best Corporate Governance is an an-nual award given out by World Financeand selection criteria includes the man-

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ACUMEN ⏐ 15

agement quality, the equal treatment onthe stakeholders, transparency and hon-esty and Corporate Social Responsibility(CSR).

KBZ Bank has been operating through120 branches in Myanmar. Its 121st branchhas been opened in Mandalay since 20September. KBZ Group is not only doingbanking but also in other sectors such asconstruction, garment industry, insurance,oil industry, communication, cement, avi-ation business and mining under U AungKo Win, the Chairperson. A

Myanmar seesinvestment growth

in construction sector

Realising the need to upgrade Myanmarinfrastructure, a number of foreign con-struction companies has entered Myan-mar this year.

Last August, a Japanese Minister forLand, Infrastructure, Transport and Tour-ism (MLIT), Mr Akihiro Otha met withMyanmar Minister for Construction,UKyaw Lwin, in Naypyitaw. The Japaneseminister pledged to help Thakayta (Pa-zundaung-Dawbon) bridge construction asJapan-Myanmar friendship-bridge: to givenecessary expertise for road safety ofYangon-Mandalay Expressway and con-struction for housing development. OnSeptember 17, in Naypyidaw, the delega-tion lead by Mr. Shin Hnoto, Deputy Di-rector General from MLIT also had ameeting with Myanmar official from Di-rectorate of Investment and Company Ad-ministration to cooperate in constructionindustries.

To invest in high-rise building con-struction, Soilbuild Construction GroupLtd. (SBCG) has inked a contract to pro-vide project management and professionalconsulting services for construction of 24-storey residential towers in Myanmar. MrHo Toon Bah, Executive Director of SBCG,said: ‘‘Myanmar holds enormous poten-tial as the country opens its doors to therest of the world. We look forward toextending our construction arm in Myan-mar and delivering our high standard ofprofessional services to our clients."

According to Myanmar officials, thereare K 713 billion worth of local invest-ment in construction industries. MyanmarInvestment Commission has been invit-ing more international companies to in-vest in construction sectors. A

Food giant Nestleenters Myanmargroceries market

The Switzerland-based food giant, Nestlehas entered Myanmar groceries market viaThailand. The company has been operat-ing in Thailand for more than 120 years.Nestle Myanmar Co., Ltd. has been formedto tap Myanmar market after getting per-mission from the DICA (Directorate of In-vestment and Company Administration)last September.

Nestle will produce and market cof-fee, bottled water, milkshakes and otherbeverages, breakfast cereals, infant nutri-tional foods, seasonings, soups and sauces,frozen foods and pet food for Myanmarconsumers.

Nestle Myanmar is also looking forlocal marketing and manufacturing em-

ployees through local job agencies.A consumer said, ‘‘Most of foods pro-

duced in Myanmar and exported from oth-er neighboring countries have no account-ability for healthcare and consumer rights.Nestle is an international company. So, Ihope that Nestle will value consumer rightsdepending on the demand from Myanmarconsumers." A

Hotel construction in arush to be readyfor Sea Games

The countdown is coming on until theopening ceremony of the 27th SoutheastAsian Games (SEA) in Myanmar on 11December for the first time. To managethe hotel rooms demand by Sea Gamesparticipants, Myanmar is in a rush to com-plete new hotels construction in Nay PyiTaw in time, according to the Ministry ofHotels and Tourism.

U Htay Aung, Union Minister of Ho-tels and Tourism, said, ‘‘Sea Games com-mittee will take full responsibility for play-ers and invited persons" in a meeting withhotel construction personnel in Naypyitaw.They expected 4,200 rooms in 53 new ho-tels are able to accommodate 3,700 peo-ple especially special guests, players, andjurors, team managers as well as other SeaGames tourists.

At present, 40 hotels have been com-pleted in the Naypyitaw Hotel Zone, with13 still under construction, according tothe ministry.

It is expected that about 1.5 milliontourists will visit Myanmar this year. Morelicenses for the hotel and tourism indus-tries are thus being allowed, to cater tothe increase in arrivals. A


News in Brief


Prospect of two groups'MoU: to MyanmarEconomic potential

Last October, a Singapore Exchange MainBoard Listed Company, Yoma StrategicHoldings Co., Ltd. signed a MoU (Memo-randum of Understanding) with Mitsub-ishi Corporation, Japan's largest generaltrading company, to jointly explore busi-ness potential in Myanmar. This MoUmakes firmly strong the current opera-tion of two groups and opened the gateof upcoming business potential opportu-nities in Myanmar.

Yoma Stretegic Holdings Ltd. is oneof flagship companies of SPA (Serge Pun& Associates) Group together with FirstMyanmar Investment Co., Ltd. Yoma Stra-tegic has started to operate Mitsubishi'sfirst after sales service centre in Yangonas a first step of alliance with MitsubishiCorporation. Not only Yoma Strategic butalso SPA, it has been the exclusive dis-tributor of Mitsubishi elevators and esca-lators in Myanmar market since 1998.

‘‘This alliance with Mitsubishi Corpo-ration will be instrumental to further col-laboration between the parties and en-sure that our ongoing projects will con-tinue to progress well." Andrew Rickards,Yoma Strategic's chief executive, said.

Singapore listed Yoma Strategic hasoperation in real estate, agriculture, theautomotive industry and luxury tourismin Myanmar. Mitsubishi Corporation runsas its global business with more than60,000 employees in about 90 countriesworldwide.

Myanmar is on the way of economic,political and social reforms which means

much potential - its economy to overUS$200 billion by 2030, according to arecent report by McKinsey Global Insti-tute. A

eYangon will be readysoon

eYangon is founded since 2012 by theGovernment of Yangon in the form of PPP(Public-Private Partnership). The policieswere laid out by the Government ofYangon and developed by the PrivateComputer firms who also are the mem-bers of Myanmar Computer Industry As-sociation (MCIA).

Room No. 219 of Yangon Parliamentis used as the head-quarter for eYangonProject. Operations will start on 30 Sep-tember 2013. eYangon will start by devel-oping a web portal with its own url,

www.eyangon.gov.mm. One of the featuresof Web Portal is creating opportunities forpeople of Yangon.

eYangon Web Portal will provide theservices by government agencies, news,announcements and other useful informa-tion to people. Generally saying, it startedas web presence then later develops stepby step through the seamless online webportal stage.

International ICT Exhibition will behost in Yangon on 17 October 2013.eYangon Web Portal has plan for ‘SoftLaunch' at that exhibition. People can thenvisit the portal at www.eyangon.gov.mm.

As soon as the development stage iscompleted then it will transferred toYangon Government. The committee ofeYangon is chaired by Chief Minister ofYangon with about 20 members. Theproject is planned to develop in three stag-es. At first, Web Portal will provide theinformation services from Yangon Govern-ment ministries, Yangon City DevelopmentCommittee and any other organizationsunder Yangon Government.

Secondly, the portal is planned to beinteractive such as forms fillings, asking

questions, call for requests, complaints,eCall Center services. Finally, the portal istargeted to serve the online transactionalinteractive services such as applying li-cense, paying tax, retrieving informationby searching through provided databases,Live Updated traffic information and soon.

eYangon will act as the platform ser-vice for other infrastructure developmentprogramme. So, it will support in develop-ment of eGovernment systems of Myan-mar.

eYangon portal will not only serve forthe people of Yangon and Myanmar butalso to foreigners. It will also serve theinter-governmental department communi-cations. Mr. U Min Oo, Chariman of MCIA,is one of the responsible persons for thedevelopment of eYangon. He also men-tioned that he cannot confirm the projectfinishing date as it depends on many fac-tors such as HR and financing issues. Italso depends on participation, readiness

of other organizations connecting toeYangon.

Digital Yangon 2008 was planned since2003 by the eGovernment ImplementingCommittee chaired by the then Prime Min-ister General Khin Nyunt but suspendedin 2005. eYangon is similar to it but updat-ed and adopted to the current technolo-gies. A


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Cover Story


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ACUMEN ⏐ 19ACUMEN ⏐ 19



Cover Story

The world today is experiencing anever-greater need for energy. Developed as well as developing

countries are scrawbling for energysources worldwide. Energy fuel supplyhas now become part of a country's secu-rity and national interest. Powerful coun-tries for their own national interests, havenow come to adopt various approachesto gain access to global energy sourcessuch as oil, natural gas, hydropower coal,etc., particularly those in smaller coun-tries.

Myanmar is unquestionably rich innatural resources ranking number 42 onthe International Energy Agency's list ofcountries rich in natural resources. Un-fortunately, however, inept managementseems to have made Myanmar one ofthose countries which, though amplyblessed with natural resources, do notachieve as much progress as they should.

Following the country's transitionfrom military rule to democracy a grow-ing number of foreign business peoplehave expressed interest in making an in-vestment in Myanmar, mostly in the en-ergy sector. China has the largest shareof foreign investment in this country. Chi-nese companies have been here since thedays of the military government.

Rakhine State: Myanmar'sRakhine State: Myanmar'sRakhine State: Myanmar'sRakhine State: Myanmar'sRakhine State: Myanmar'sTreasure TroveTreasure TroveTreasure TroveTreasure TroveTreasure Trove

Natural gas is being extracted inYetagon, Yadana, Shwe and Zawtika sites.It is sold to Thailand and China. The larg-est in terms of supply is from Shwe site.Most of the business the people in theRakhine State do is export business, par-ticularly to neighbouring Bangaladesh andupstream by the Kaladan river to Mizuramin India. The Rakhine state produces ag-ricultural and animal husbandry goods.There are fisheries and sun-dried salt in-dustry by the Bay of Bengal.

As regards foreign investment, thestate has investors in its 27 off-shore Shwe(means Gold) gas project with China,South Korea and India operating in blocks1, 2 and 3. To meet the energy needs of

China, gas from the Gold gas project areais conveyed through the pipeline atKyaukphyu. Oil purchased from theMiddle East and Africa is to be refined atKyaukphyu and then sent to China'sYunan province through the oil pipelineat the rate of about 200,000 barrels a day.The Gold gas project and the oil pipelineproject have some multi-national share-holders: Daewoo International Corp (51per cent). Mumbai-based OVL (17pc),Myanmar MOGE (15pc), India's GAIL(8.5pc) and Korea's KOGAS (8.5pc).

At Kyaykphyu, which is a deep-seaport, a railway track, an airfield and aspecial economic zone comprising indus-trial zones are projected to be constructed.The initial investment would be in theorder of US$8.3 billion and it would be89.2 billion for a period of 35 years. Theproject comprises the construction of a800 kilometre long railroad fromKyaukphyu to Shweli in China at an es-timated cost of US$ 20 billion. It is stipu-lated in the MOU that the constructionsare to be under China's control for 30years before being handed over toMyanmar. The Rakhine Oil Watch saysthere is a plan to build a highway be-tween Kyaukphyu and Shweli.

India has its own chunk of invest-ment in Myanmar in the form of KaladanMulti-modal Transit Transport Projectbeing carried out by ESSAR under theaegies of the Ministry of External Affairsof India. The Indian government hadmeant it for the development of its North-east frontier areas as part of the agree-ment the two countries signed during ViceSenior General Maung Aye's visit to In-dia in 2008. The project is expected tocost US$200 million and to be completedby 2015.

The hydropower projects include theLay Myo Project and the Tha-htay-chaungproject which is still under way. There isan agreement with Vietnam's MYSICO onthe extraction of decorative marble fromthe Nay Pu Taung mountain at Taungup.The project starting in 2013 is expectedto produce a total of 7850 metric tons of




Oil container tanks construction sitein Kyauk Phyu to load purified oiland gas to China / Thet Naing Htun

Upgradation Sittwe port of KaladanMultimodal Transit Transport Project/ Khaing Minn Nyo

Sittwe port construction site ofKalandan Multimodal TransitTransport Project / Khaing Minn Nyo

Stand-by position of a ship at KyaukPhyu sea port construction site /shwe.org

Impact of digging the hills inRamree Island by CNPC’s construc-tional heavy vehicles / shwe.org

870 kilometers long Pipe line toYunan / shwe.org



marble for a period of 25 years. Someforeign companies are said to be doing afeasibility study of Rakhine coastal sandfor extraction of titanium.

The Curse of Natural Re-The Curse of Natural Re-The Curse of Natural Re-The Curse of Natural Re-The Curse of Natural Re-sources?sources?sources?sources?sources?

Every undertaking produces goodresults as well as bad results. If all par-ties involved are working together in anopen and transparent manner each get-ting a just and fair shareof the benefit there willbe a harmonious relation-ship. Any undertakingthat only benefits a cer-tain elite group control-ling it while the rest ofthe stakeholders are leftto suffer is simply an un-just and unfair business.

A 30 year deal withChina on the sale of 12billion cubic metres ofRakhine offshore naturalgas earns Myanmar ayearly income of aboutUS$2 billion. There is yetanother income expectedas natural gas pipelinepassage fees at the rateof $13.81million a yearamounting to a total of $414.3 million for a 30-year period. Crude oilpipeline passage fee onedollar per ton, whichmeans an income forMyanmar of over $6 mil-lion for 22 million tonnesof crude oil for 30 years, according to areport prepared by the Gold gas activists.

It is only natural that an economicundertaking results either in loss or profit,but one has the right to sell or not to sellMyanmar's natural gas sale is of the na-ture of black market sale, but a country'snatural resources are not to be treated asthings to be put on the black market.

Myanmar's sale of natural gas is anadvance sale, which puts the price at a

disadvantage against international prices.A Rakhine businessman said ‘‘This ad-vance sale to China makes the prices lessin worth when compared to prices in thenext 20 or 30 years''.

Though the Chinese companies hadassured that their investment in that partof the country would create jobs for thelocal people, yet what it all results is lossesfor the people. There have been damagesto the natural environment and the eco-

local fishing industry suffers because ofrestrictions on fishing grounds. The for-ests that used to serve as natural dikeagainst flooding are all but depleted. Allthat lack of accountability produces adamaging effect on the social life andhuman rights of the local people as wellas the natural environment.

‘‘The jobs they give us are manualjobs such as carrying bricks and stonesand that only on a short-term basis and

system all along the 30 metre wide and870 kilometre long Gold gas pipeline pas-sage through such parts of the country asthe Rakhine State, Magwe region,Mandalay region and Shan State, whereirresponsible earth digging and dumpinghad occurred. The local people were ren-dered landless and jobless. Marine life isalso being threatened with gradual ex-tinction as a result of underwater detona-tion in prospecting for natural gas. The

low-paid'' said U Maung Aye Naing of

Maday Kyun whose land was taken awayby the local authorities, adding, ‘‘A con-

siderable number of our villagers, includ-ing my son, left for Thailand. From there

he'll go on to Malaysia where his brother-in-law is staying''.

There is a demand by the local

people for necessary corrective action fordamaged social and environmental life ofthe people. The people there consider

Cover Story

Local Fishermen’s livelihood in Kaladan River, Rakhine State / Khaing Minn Nyo


ACUMEN ⏐ 23

their local natural resources not as a bless-ing but rather as a curse. ‘‘We do not seeany protective measures for the environ-ment in the project'' said U Oo Hla Myint.‘‘If that natural gas does make a wreak ofa farmer's life it might be taken as some-thing of a curse''.

In its web page the Energy Ministryspeaks about ‘accountability' and ‘trans-parency' regarding its implementation ofsocio economic projects China's CNPC on

balance rather than focusing on the goodresults alone. The project now underimplementation in the Rakhine State hasflaws: a case in point is a gas leakage inSeptember with the resultant outbreak offire; the Chinese people in Kunming them-selves took to the street in an anti-pipe-line demonstration, and there were alsoprotests by Myanmar people abroad in2012 and 2013. The entire gas pipelineproject is full of challenges not only for

makes or does not make necessarychanges in its development programmes.In Alaska, which the US purchased fromRussia for $7.2 million the US govern-ment managed to exploit its oil resourcesproducing over 21 million barrels of oiland 34 billion cubic feet of natural gasmonthly. Alaska receives income from thefederal government as land lease chargesas well as a proper share of financial gain.

The US constitution stipulates that thecountry's natural re-sources must be treatedas natural heritage be-longing to all the US citi-zens. Income from a saleof natural resources arekept as permanent re-serve fund, of which 25percent is used as invest-ment. From 1982 to 2009payment by cheque tothe people amounted to$17.5 million. In 2008,they recurred $2,000each.

In 2010 Norway, one ofthe world's top-ten natu-ral gas producers had atotal of 2 trillion cubiccentimetres of naturalgas still untapped. Witha view to meeting theeconomic challengeslikely to result from theeventual depletion of itsoil reserves, the govern-ment set aside its rev-enue from oil and natu-ral gas as a reserve fund

called Norwegian pension fund. There area number of restrictions on the use andmanagement of that fund to ensure that itis used in an effective way. It can be trans-ferred to the state budget account onlywith the approval of Parliament and ifcannot be used for any personal or pri-vate purpose.

Countries the world over have lawsthat curb the indiscriminate extraction ofnatural resources. They have strategies

its part said it has earmarked $10 millionfor regional development and two mil-lion yearly as compensation for losses anddamages incurred during the project op-eration. But U Tint Htoo Aung of theRakhine National Congress said that theauthorities concerned are remiss in ful-filling their obligations.

Every economic project has its mer-its and demerits. It is a standard interna-tional practice to weigh them in proper

the Rakhine State in Myanmar but alsofor China as well.

How they use their natural re-How they use their natural re-How they use their natural re-How they use their natural re-How they use their natural re-sourcessourcessourcessourcessources

There are many instances of misman-agement regarding Myanmar's natural re-sources from the viewpoint of the wayother countries do it. Every country hasinadequacies or deficiencies. Progress ofa country varies according to how it

Marine Life on Rakhine Coast in Danger of Extinction from Mine Blasts /narinjara.com

Marine Life on Rakhine Coast in Danger of Extinction from Mine Blasts /narinjara.com



to cope with the eventual depletion of theirnatural resources. Their open and trans-parent style of management ensures thatall those involved gets a just and fair shareof the profit from the exploitation of natu-ral resources. That contributes a lot to thedevelopment of the country.

Natural Resources and Manage-Natural Resources and Manage-Natural Resources and Manage-Natural Resources and Manage-Natural Resources and Manage-ment and Transparencyment and Transparencyment and Transparencyment and Transparencyment and Transparency

Natural resources are not a curse.Rather, under open and transparent man-agement, they can be treasures of im-mense value. That kind of managementcalls for a good understanding of relevantinternational management norms.Myanmar has expressed its wish to be amember of Extractive Industries Trans-parency Initiative (EITI) and President UThein Sein is trying to get it realized. EITIplays a supportive role in the sustainabledevelopment of countries rich in naturalresources by helping promote financialmanagement public awareness and par-ticipation, transparency and accountabil-ity regarding how the governments handlethe finances of their extractive industries.

At present transparency is lacking notjust in the Rakhine State alone. ‘‘Thepeople of the Rakhine State get nothingfrom the gas sale'' said U Aye Thar Aung.‘‘In fact, I don't know how and where thosegas sale proceeds are used in Myanmaras a whole. This utter lack of openness isjust undesirable''.

Countries can gain benefit by actingin conformity with the norms and guide-lines set down in the Natural ResourcesCharter that aims at creating a better un-derstanding between people and theirgovernments, thereby contributing to eco-nomic growth.

Natural Resources and theNatural Resources and theNatural Resources and theNatural Resources and theNatural Resources and theRightsRightsRightsRightsRights

Minister for Electrical Power U KhinMaung Soe said in one of the First Na-tional Assembly that the natural gas wassolely for sale to China and for the devel-opment of Central Myanmar not for usein the Rakhine State. That remark gave

rise to protest among the people of theRakhine State. The Rakhine political par-ties and social organizations. ‘‘Our state,one of the poor in Myanmar producingnatural gas that really makes us happy,but the fact that the Rakhine peoplehaven't got any benefit from it to this daymakes us feel unfairly treated'' said U AyeThar Aung, chairman of the ArakanLeague for Democracy as well as Secre-tary of CRPP.

It is not the Rakhine State alone thatis denied their rightful share of the bo-nanza. The Mon State, that has Mottamaoffshore projects Yetagon and Yadana hasits people suffering losses and damagesdue to the projects. Mon Democratic Partychairman U Naing Ngwe Thein said, ‘‘Allthat have been extracted are sold to Thai-land with none of the people benefittingfrom it''. He added ‘‘True federal systemis the only way to ensure equitable distri-bution wealth and the rights of the indig-enous people.

The matter of sharing the natural

resources brings in the question of the2008 constitution of the country regard-ing power sharing and sharing of naturalresources. The provisions in the constitu-tion as regards these issues should re-flect a fair and just compromise betweenthe central government and the provin-cial governing bodies.

Cover Story

Lack of equitabledistribution of wealth

generated by thecountry's natural

resources is said to beone of the causes of

civil war. Civil warshamper progress of acountry. Myanmar'sprotracted civil waris closely related to

the sharing of naturalresources.


ACUMEN ⏐ 25

Natural Resources and the Con-Natural Resources and the Con-Natural Resources and the Con-Natural Resources and the Con-Natural Resources and the Con-stitutionstitutionstitutionstitutionstitution

The existing constitution was drawnup at the Nyaung Hnapin Convention andapproved in a reference. It was precededby 1947 constitution drawn up by theAFPFL government and the 1974 consti-tution by the BSPP under U Ne Win Po-

litical parties legal experts and civil soci-eties point out some flaws and loopholesin the constitution. Article 37, for instance,calls for reviewing, it says to the effectthat the government is the bona fideowner of all the natural resources thatexist in water, air and on land. It alsoinvests the government with the power

to enact laws on exploitation of thecountry's natural resources. ‘‘That's justunfair'' commented the Gold gas activists.

There are two groups of people withdifferent approaches to amending the con-stitution. One group wants to do it in Par-liament and the other one outside. MonDemocratic Party chairman U Naing Ngwe

offshore natural gas platform in the troll gas field off the west coast of Norway



Thein said, ‘‘There's little chance of suc-cess if we do it with the government.‘‘We'll do it outside Parliament only whennecessary, we'll present it to Parliament''

U Hla Myint, a Rakhine businessmanexpressed his views, saying ‘‘It's just notfeasible to amend the 2008 constitution.It'd be like trying to alter a rather tightjacket. Just a little alteration here and therewon't do. We should do the whole thingover, based on the best model of democ-racy and federation in the world that suitsour country''

Thura U Shwe Mann, Speaker ofPyithu Hluttaw said,''We've formed a com-mittee to review the constitution. It'll startworking soon. When it will finish its workdepends on its effort and the extent ofparticipation by the MPs''.

Myannar's current political processconsists of several interdependent phasesfrom ceasefire to peace from constitutionamendment to a genuine democracy, andfrom power sharing to a genuine federalunion. Federal system will play an im-portant role in deciding on matters ofrights for the individual constituent statesof the Union.

Natural Resources and FederalNatural Resources and FederalNatural Resources and FederalNatural Resources and FederalNatural Resources and FederalSystemSystemSystemSystemSystem

Now with the democratization effortsgoing on under President U Thein Seinthe people have come to see that federal-ism does not mean the right of cession.They have begun to demand the right ofself-determination, after having been dis-trustful of the governments that have de-nied them this right for nearly 60 years.So they are now unanimous in voicingtheir demand for self-determination.

Federal system is best-suited toMyanmar with its eight major ethnicgroups. ‘‘Power sharing is a requisite fora federal system'' said Dr. Tu Ja ‘‘If pro-vincial governments are allowed to exer-cise the right of self-determination all therest of the problems will solve itself''.

Natural Resources and PeaceNatural Resources and PeaceNatural Resources and PeaceNatural Resources and PeaceNatural Resources and PeacePresident U Thein Sein has achieved

a certain measure of progress in doingwhat his predecessors failed to do. Someof the armed groups have agreed to aceasefire as part of their effort to get apolitical solution to political problems. Anall inclusive conference like the historicPang Long conference is expected.

Lack of equitable distribution ofwealth generated by the country's natu-ral resources is said to be one of the causesof civil war. Civil wars hamper progressof a country. Myanmar's protracted civilwar is closely related to the sharing ofnatural resources. There are similar casesSudan for instance, had been engaged incivil war over the question of sharing theoilfields in its southern region until 2005when both sides signed a peace agree-ment. Indonesia also had for so manyyears experienced a similar situation inconnection with oil and natural gas untilan agreement was reached in 2005.

As the examples of the internationalstudy regarding with natural resource,fairly ratio allocation to producing regionis a tactic to end civil war and implementfor peace. 60 years long civil war in

Myanmar is based on the rights becauseethnic armed groups and ethnic politicalparties believe in equality, self-determi-nation and genuine federal union. That iswhy, fairly ration allocation of naturalresource to producing region would bean acknowledgement of trust-building forpeace and genuine federal union.

In the end, natural resource will runout of the land. By the future plan of somecountries for their national security andnational interest, at the time they are strug-gling to own energy from other countriesin various ways, it is invaluable Myanmaris full with natural resources. That wouldbe out of question which is called‘Myanmar Resource Curse'. If it is an ad-ministration which is able to guaranteefor transparency, fairly ratio allocation,priority for internal sufficient profit - re-specting to international standards suchas EITI (Extractive Industries Transpar-ency Initiative), NRC (Natural ResourceCharter), EIA (Environment Impact As-sessment), SIA (Social Impact Assess-ment), FPIC (Free and Prior InformedConsent). A

Cover Story

Sudanese Vice-President Ali Osman Mohamed Taha,left, and the Country’s main rebel leader JohnGarang shake hands after signing the long awaitedpeace accord / AFP


adv.pmd 10/10/2013, 8:17 PM11


Feature


Warning; Testing Needed.pmd 10/10/2013, 7:51 PM28

ACUMEN ⏐ 29

The Silent KillerThe Silent KillerThe Silent KillerThe Silent KillerThe Silent KillerIn September, there was a rampage

of news, concerning food dangers inMyanmar. The most serious problem con-cerned not, as before, imported packed foodstuffs from abroad but one traditional foodcalled fish paste, that most Myanmar peoplehave enjoyed for generations. Fish paste(that is boiled into a light gruel) which isan essential dish in most Myanmar's dailymeal is very much a Myanmar peoples ownproduct. It is mainly a product ofAyeyawady Region where there are sev-eral rivers, creeks, lakes and ponds. Manypeople were amazed when the ConsumerProtection Association of Myanmar in earlySeptember announced that urea fertilizerwas found in the fish paste sold in themarket. In the simple production systemwhere the fish is pounded to pulp andpotted in jars, the report said that urea fer-tilizer was added to make the bones de-composition faster. But in the report sub-mitted by the Food and Drug Administra-tion (FDA) before October it was statedthat though urea was found in the samplefish paste sent to be tested it could notconfirm if it was the fertilizer up until thetime this feature was written on 10 Octo-ber, it still remains controversial.

Whether there is urea fertilizer mixedin the fish paste or not, the news has cre-ated suspicion between the consumer andproducer. In a case relevant to fish paste

that occurred about four years ago, the FDAhad banned ready-made fish paste becausedangerous dye was used in making thefood. Currently the ratio of chemical sub-stances in basic food stuffs of Myanmarremains high. As dye is used in variouscooking stuffs such as chilli powder, tur-meric, bamboo-shoots, etc. it is also usedwith fruits to speed up ripeness.

Some have labeled such dangerousfoods as silent killers. Due to those chemi-cal induced foods cancer disease is on therise at an alarming rate and the WHO datasaid Myanmar is one of the highest cancerrates countries in South East Asia.

Violent life stylesViolent life stylesViolent life stylesViolent life stylesViolent life stylesWhen talking about consumers rights

in Myanmar, other than speaking aboutdangerous foods, it should be mentionedabout inconvenient and unqualified servicesand environment. In this under-developedcountry, travelling and communication arestill difficult. Most citizens commuting dailyare frustrated. In Yangon, the business citywhich has to depend on the bus, becauserailway service is ineffective and trafficjams are everywhere and every day. Thecommuters are packed in buses like sar-dines in a can. That is why the passengersrefer to the bus service as ‘stuffed like fishpaste'.

Goods that lack quality and unsafework sites are a challenge to the Myanmar

social community. Mainly it is said thatsome goods that arrive through bordertrade especially goods such as cement, fer-tilizers are fakes and of low quality. Con-cerning those goods of low quality, U WinMyint the Union Minister for Commercehimself told the media that ‘‘There are in-stances of import of counterfeit fertilizers,counterfeit pesticide and counterfeit liqueur.We are reporting the matter to the presi-dent and thinking of how to deal with it".

The right of choice and capa-The right of choice and capa-The right of choice and capa-The right of choice and capa-The right of choice and capa-bilitybilitybilitybilitybility

Myanmar, which has been out of touchwith the rest of the world for about 20years did not get the chance to choosemodern products as they like. Myanmarwas especially far from reputable westerngoods that had quality and social account-ability. That Myanmar had to mainly im-port from Asian countries that includedneighbours such as China, Thai and Ma-laysia. And importing, there was legal aswell as illegal border trades daily. Thematter is mentioned in the Commerce Jour-nal.

‘‘According to the Union Minister theamount of goods imported from Myawadiborder trade between 2012 April 1 to July31 was worth US$36 million while accord-ing to the figures available from Thailand,the amount was $520m. Thus it indicatesthat the legal and illegal trade difference

ACUMEN ⏐ 29

Fish paste which is an essential dish inmost Myanmar's daily meal

The ratio of chemical substances inbasic food stuffs of Myanmar remains

high



is over 14 times amounting to $484m morein illegal trade."

In illegal border trade most goods areimported from Thailand and China. As theyare illegal goods there is no safety or qual-ity warranty for the consumers in Myanmar,especially the illegal goods from China. Asthey are illegal goods there is no safety orquality warranty for the consumers inMyanmar. Especially illegal goods fromChina are notorious for their quality. Lastyear after rumours that sewage oil hadbeen imported from China there is morehearsay that perilous animal oil is gettinginto the country.

Beside the existence of such illegaltraffic, the weak inspections of officialsseem to be neglecting the danger. In rel-evant to the matter the parliamentarian DrThan Win has told the Kamayut media asfollows.

The Administrators in charge lacktransparency. They also lack accountabil-

ity. And as so too in monitoring. Besidesthat it also lacks rule of law. I am verymuch amazed that the government has notviewed this as a national danger and dealtwith it effectively.

Besides that in Myanmar where busi-ness competition is not strong yet someinternal business man in their greed haveignored the rights of the consumers. ManyMyanmar entrepreneurs who have tradi-tionally assumed that rightful trade is notbeneficial have only started to hear aboutCorporate Social Responsibility (CSR) inrecent years. Due to these internal traderscum brokers illegal goods have been ableto enter the country.

As the Myanmar can produce lowquality goods only even the Myanmarsthemselves avoid the ‘Made in Myanmar'goods as much as they can. Due to lowdevelopment as there is shortage in tech-nology resource and skill, when void ofbusiness ethics, the internal products and

services even cannot compete to its flowinto a low quality region.

Doing business as a crony of the pow-erful and ignoring the benefit of the con-sumer is what makes the Myanmars hatethe entrepreneur.

The other problems is that theMyanmar themselves lack knowledge ofconsumer rights. Even in buying goods ata store there are very few who look at theitems' expire date. Most follow the drift oflow price than quality. This is a naturalphenomenon that Myanmars who lackhealth knowledge and suffer low incomehave to endure. The Myanmar citrzenshave become quite used to consuming dyedfood stuff and hazardous edible oil.

Inviting opportunitiesInviting opportunitiesInviting opportunitiesInviting opportunitiesInviting opportunitiesA person cannot strenghten consumer

protection individually, all need to partici-pate. The government organization needsto truely do their job. There is criticism

Feature

Travelling is still difficult inYangon


ACUMEN ⏐ 31

that though officials declare they havefound out it lacks effective penalties. Re-ferring to the condition of official regula-tion, U Kan Nyunt the former vice-chair-man of the Consumer Protection Associa-tion of Myanmar has summarized as fol-lows.

‘‘I don't have to say anything of theirfindings. What would they do about theirfindings? How will it be destroyed. Theremust be transparency in laws and followups."

Currently the consumer protection lawis still at the discussion stage and it is esti-mated that it could be issued at the begin-ning of 2014. A solicitor says that thoughthere is no pure consumer protection lawin Myanmar there are over 30 relevantlaws such as the National Drug Law (1992)and National Food Law (1996). Thoughthere are such laws it is said that theyneed to be modified to suit the situation oftoday. Mainly there needs to be strict ac-tion taken in safety food measures that arethe most dangerous to life. At present, theFDA is functioning with only over a hun-dred personnel, as criticized, it may lack ac-countability. Dr Htun Zaw the director of FDAhimself has frankly admitted as follows.

‘Please do not compare the FDA of aleast developed country with 60 millionpeople functioning with a work force ofonly 100 with efficiency of the FDA of adeveloped country like the US.'

As a tradition of transformation pe-riod, most people put the blame on theauthorities. That attitude can clearly be seenin Myanmar that has been transformingfor two years. Most criticisms concerningwith the consumers right show that it isdirectly relevant to the administration incharge. That it is mainly the government'sresponsibility is quite true to a certain limit.There can be the former regimes ineffec-tive influence such as weak laws, non-per-formance of present laws ,corruption andweak vitality. But in this transformationtime as today, not only the officials butcivil societies, media and the entire popu-lation should participate together. U ThanMaung, an advocate has summarized asfollows.

‘‘In truth, consumer protection is notsimply just the government's job. In othercountries, the NGOs work. And that NGOneeds to be a very strong NGO."

In Myanmar the NGO organizationsthat are active are the consumer Protec-

tion of Myanmar and Myanmar Consum-ers Union that were formed, respectivelyin 2012. During the military government'sregime the difficulty of forming civiliansocieties was a hindrance for the consumerprotection case. Though the current twoorganisations are being active as much asthey can they need much to disperse withinthe citizens. The worst fact is the loss ofThe worst fact is the loss ofThe worst fact is the loss ofThe worst fact is the loss ofThe worst fact is the loss of

trust between government organizationstrust between government organizationstrust between government organizationstrust between government organizationstrust between government organizations

and civilian organizations. According toand civilian organizations. According toand civilian organizations. According toand civilian organizations. According toand civilian organizations. According to

interviews, some civilian organizationsinterviews, some civilian organizationsinterviews, some civilian organizationsinterviews, some civilian organizationsinterviews, some civilian organizations

bellow that the government does notbellow that the government does notbellow that the government does notbellow that the government does notbellow that the government does not

work, while some officials from govern-work, while some officials from govern-work, while some officials from govern-work, while some officials from govern-work, while some officials from govern-

ment organizations view civilian organi-ment organizations view civilian organi-ment organizations view civilian organi-ment organizations view civilian organi-ment organizations view civilian organi-

zations as vile. It can be said that thoughzations as vile. It can be said that thoughzations as vile. It can be said that thoughzations as vile. It can be said that thoughzations as vile. It can be said that though

joint activity between the two have beenjoint activity between the two have beenjoint activity between the two have beenjoint activity between the two have beenjoint activity between the two have been

earnestly called for, there are more accu-earnestly called for, there are more accu-earnestly called for, there are more accu-earnestly called for, there are more accu-earnestly called for, there are more accu-

sations than cooperation.sations than cooperation.sations than cooperation.sations than cooperation.sations than cooperation.It is not a surprise that it is so with

Myanmar in the current state of suddenwake up from its long sleep. This matterwhich cannot be immediately transformedneeds a certain amount of time to beachieved. It is especially necessary to edu-cate consumers themselves and the inter-nal businessmen. Though low income is ahindrance for consumer, only when citi-zens realize consumer rights and subtlymake the right choice would suitable pro-tection be possible. One opportunity is thatthe time when competition will be fiercebetween foreign direct investment andAsean business community is approach-ing. At that time of free competition thelocal entrepreneur will have to head qual-ity standard and for the consumer alsothere would be many to choose. Graduallygoods and services that lack standard qual-ity will certainly be decided by the con-sumers.

As for Myanmar, that has lived a se-cluded life for decades the present time isa struggle in every factor as there are manychallenges faced in the consumer protec-tion factor that is most important for thesocial life. To overcome those challenges,the country needs good governance in thelaw enforcement and for the civilian orga-nizations and citizens to be enthusiasticallyactive. A

A person cannot strenghtenconsumer protection individually,all need to participate



Feature


Hotel Tourism-Myitmakha(next design).pmd 10/10/2013, 8:53 PM32


Mr Antony, about 30 years of age, fromGermany is taking pictures of Shwedagonpagoda looking up to it in amazement.

He has never seen such a splendidpagoda before and he has visited Myan-mar after hearing that there are a largenumber of pagodas and other interestingplaces to hang out.

But he definitely was not happy withthe room rates in Yangon.

‘‘It's OK for me to pay hotel fees tostay in it, but the downtown Yangon israther a long way from here," he said.He continued to explain that he had tostay in a cheap hotel at North OkkalapaTownship as the rate of a decent hotel indowntown Yangon was too high althoughhe wanted to be there.

The number of international travelershas increased up to four times over that of2011 in Myanmar.

‘‘Daw Aung San Su Kyi was releasedfrom house arrest in November 2011. Thenpolitical prisoners were released. Touristsare entering the country because of suchpolitical changes. Certain number of for-eign businessmen are here as economicsanctions on Myanmar have been lifted bythe US and the EU," said a tour guide inYangon.

The entry of tourists into Myanmarhas been dramatically increasing since2011 and about 1.8 million of tourists haveentered the country during the fiscal year2012-2013 that ended on March 31.TheMinistry of Hotels and Tourism has fore-casted three million will come in 2014/2015 fiscal year.

Tourist arrivals in Myanmar duringthis year's open season have increasedthanks to political reforms, according tothe Ministry of Hotels and Tourism.

‘‘The 1.06 million tourists visited thecountry last year (from January to Decem-ber). There are over 900,000 foreign visi-tors who have entered the country fromJanuary to August. More than two millionarrivals are expected by December," saidan official from the Mnistry of Hotels andTourism adding that such tourism boom isdue to permission to enter the country

through the border checkpoints.‘‘That depends on political reforms.

The situation is not like before. The num-ber of tourist arrivals has risen not onlybecause of political reforms but also be-cause of allowing them to enter the coun-try via the borders," said the official.

Hotels in Myanmar should be pre-pared to provide better services for manytourists expected to enter the country andthe international standard rooms shouldbe developed to accommodate the influxof foreign visitors coming to Myanmar,according to a source from Myanmar Ho-teliers Association.

Hotel construction is being expandedin major cities such as Yangon, Mandalay,Naypyitaw and Mawlamyine and the in-teresting tourist attraction spots such asBagan-Naung U and Inlay.

A two-star floating hotel is under con-struction in Ayeyarwady River near Man-dalay and will be completed by the timeof SEA Games to be held from 11 to 22December in Myanmar, according to con-struction manager U Lay Myint there.The floating hotel has 70 rooms of which40 are double rooms, four suites and twomeeting rooms.

‘‘We've given top priority to safety ofvisitors. Bio tank with recycling system,KTV, Internet, library, sport hall, auto-fireextinguisher and recreation centers willbe equipped in this floating hotel," U LayMyint added.

Despite influx of foreign visitors toMyanmar, they are facing some difficultiesand one is lack of enough internationalstandard hotels, poor hotel services andexpensive rates, a tour guide said.

The cost of a visit to Myanmar is high-er compared to the cost of a visit to neigh-boring countries such as Thailand, Lao,Cambodia and Malaysia and the expensesof a ten-day travel to Myanmar are higherthan two or three times to neighboringcountries, said U Aye Kyaw, ManagingDirector of Ruby Land Travel Agency ofYangon.

‘‘Some of the foreign travel agenciesbecome fed up with our country. Some

34 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m

Feature

Visitors are facing some difficultiessuch as the lack of international stan-dard hotels, poor hotel services andexpensive rates.

Visitors are facing some difficultiessuch as the lack of international stan-dard hotels, poor hotel services andexpensive rates.

agents from abroad no longer even adver-tise Myanmar giving the reasons that theirtickets are not in demand even though theyhave to spend much on advertisement.They say they are afraid that customersmay misunderstand them. Customers maythink it's a daylight robbery to charge pro-hibitive cost for a visit to Myanmar if theykeep selling tickets at these high costs. Infact customers have to pay such exorbi-tant prices not because the foreign agentshave not raised travel cost a lot but be-cause hotel fees are too expensive here,"U Aye Kyaw said.

It is said that in other countries inSoutheast Asia, a customer can stay in ahotel paying only US$ 10 but Myanmarhoteliers want around at least $80 to atmost $250 for a room.

Although room charges of most of thehotels in Myanmar and those of the four-star or five-star hotels in some of the neigh-boring countries are the same, hotel ser-vices here have not caught up with thestandards of the services that hotels in thosecountries are offering, a tour guide said.

‘‘In Thailand, a customer can stay in ahotel paying only $10 or less than $15 fortwo-star hotel and about $30 with a swim-



The number of international travelerhas increased since 2011The number of international travelerhas increased since 2011

ming pool and buffet breakfast. AlthoughMyanmar hoteliers want around $60 or$70 for a room when their hotels startopening, they can't try to make their ser-vices meet the international standards. So,it can be said that tourists' entry rate hasrisen along with bad reputation," said UAye Kyaw of the Ruby Land Travel Agen-cy.

He advised that Home Stay Servicebeing practiced in some neighboring coun-tries should be applied in Myanmar wherethere is not enough hotel accommodationin addition to expensive charges for ho-tels.

Home Stay Service means about twoor three tourists are lodged at houses, orflats, or condos refurbished and such pri-vate home-based accommodations not onlymay partly fulfill the requirement of hotelrooms but also may be advantageous toreducing charges of hotel rooms, he ex-plained.

‘‘Full board and lodging may be do-ing well. But in view of security, suppos-ing that tourists were lodged at a condo,who would deal with the protection ofthem? Is it sure the government will per-mit such lodging house? We heard last year

Home Stay Service would be given per-mission in the area outside Yangon hop-ing that it could partly fulfill needs of hotelaccommodation. We haven't seen it to beshaped up as of today for want of securitymeasures. Such home-based accommoda-tions may be good for tourists, but I thinkit is unlikely for overnight stays," said UMyo Thant, an assistant manager of SweetHotel in Yangon.

However, there is no need to concernabout safety of tourists who will be lodgedat home-based accommodations as tour-ism police forces have been already formedin Myanmar, said Daw Yin Min Lwin, atour guide for the last 19 years in Yangon.

‘‘There are a few criminal cases inour country. So, I think we needn't worry

about it. It will be Ok if we all take care ofthe visitors. I think Home Stay Service will

shape up sooner or later," she added.Myanmar has already formed tourism

police tasks and female police have beenalso reinforced among them.

The assignment of female tourism

police can make tourists safer than before,according to chairman of Bagan Zone of

Myanmar Tourist Guides Association.High rate of accommodation charges

and poor services in Myanmar are due toa long term economic sanction imposedon Myanmar once, said an hotelier.

‘‘As there used to be economic em-bargoes on trading with our country, wehave missed the boat in trading with in-ternational community. Hotel room charg-es are expensive. But I think the rate arereasonable during such transitional peri-od," he said.

Hotel fees are high because demandexceeds supply and there are not enoughhotels here in spite of influx of foreign vis-itors to the country, said another hotelier."Hotel business is a long term investment.Hotel services are totally different fromcommodity sales. Of course, they shouldcontrol room charges for the long term.Customers hesitate to visit here on accountof the high cost of hotel fees," said a travelagent.

Across Myanmar, there are currently859 hotels, 40 of which are in Naypyitaw,the capital city of Myanmar and 217 are inYangon, the commercial city, according tofigures of Ministry of Hotels and Tourism.Myanmar government has already allowedtourists including Thai people to enter thecountry with the temporary border-pass



permission (TBP) via cross-border check-points such as Myawady, Tachileik, Kaw-thaung and Htikhi, all of which are closeto Thailand from the start on 28 August2013 and 28-day visit TBP and 70-day com-mercial TBP will be issued.

Moreover, the new cross-bordercheckpoints between Myanmar-China areto be opened as the second border gate-way to the country.

It is reported that tourists enter thecountry from Yangon International Airport,or from Mandalay International Airport, orfrom cross-border checkpoints that havebeen opened between Myanmar-Thai and

Myanmar-China.The kinds of foreign visitors to Myan-

mar vary with foreign independent travel-ers, package tours, business travelers, visitfriends and relatives and other visitors.It is known that many tourists from Tai-wan, Japan, France, the US, Germany, theUK, Italy, Thailand, Singapore and Malay-sia and because most of the foreign travel-ers here come from European countriesand Eastern Asia, those countries are themain market of Myanmar tourism.

Myanmar has reportedly made prep-aration for not only frequent tourists butalso foreign visitors who will enter the

Feature

Parkroyal Yangon /www.parkroyalhotels.com

country to enjoy 27th SEA Games, whichwill be hosted in December 11-22 here.

‘‘The 33 hotels with two-star and five-star rating in Yangon will be prepared andwe've negotiated with the hoteliers. We'vedone so that foreigners entering the coun-try to participate in SEA Games can stayat reasonable prices," said U Myint TunOo from the Ministry of Hotels and Tour-ism.

As tourism plays a critical role in shap-ing the trajectory of the transition, hote-liers should be far-sighted businessmeninstead of seeing short-term benefits, saida businessman of Yangon. A

Peacock Lounge of Treaders HotelYangon


adv.pmd 10/10/2013, 8:25 PM11


Feature


Is Myanmar a Mysterious-Myitmakha.pmd 10/10/2013, 7:27 PM38


Kyaw Thet, 44, who works for a construc-tion company in Singapore, said he wasreluctant to come back to Myanmar.

As a construction engineer, he under-stands well that he should come back towork in his home country though there israrely skilled workers in Myanmar.

‘‘We can work for our country andwe want to. But the maximum salary thatemployers can offer for me in comparisonwith income that I can earn here[Singapore] is one single major thing toconsider," he said.

It is not strange that most of the edu-cated people working in foreign countriesmake such comment as many educatedyoung men in Myanmar left for abroad suchas Singapore, Malaysia, Japan, Thailandand Dubai in late 1990s.

It can be said that such brain drain isa great loss for the country during the re-construction period.

There are a lot of challenges that thestatesmen are facing in Myanmar, a newdemocratic country that was once ruledby the military regime for decades.

With the progress in some recent sig-

nificant reforms,the interna-tional commu-nity including the United States of Americaand the European Union has already liftedeconomic sanction imposed againstMyanmar.

Recently, Daw Aung San Su Kyi, arepresentative of Hluttaw [Congress] has,during her visit to Singapore, encouragedall Myanmar people scattered all over theworld to come back to work in their coun-try Myanmar as has done the President UThein Sein during his previous visits tothe United States and the European Union.

For the time being, some foreignersare doing business at a loss and now theyare considering whether they should in-vest in Myanmar or not though there areenough natural resources. The civilian gov-ernment has been implementing reformsduring the transitional period, which canattract a great number of investors fromall over the world if handled properly.

CEO Ross Cormack of OoredooMyanmar, one of the tender winners fortelecom network contract said at the meet-

ing held in Naypyitaw from 10 to 11 Sep-tember that they had found there were bothopportunity and challenges in investing inMyanmar.

‘‘Myanmar is a suitable country wherebusinessmen should invest. On the otherhand, there are challenges and deterrentshere. So, we should think of how to pre-pare for overcoming them," he said.

Foreigners interested in investing inMyanmar say that major challenges for in-vesting here are lack of adequate electricpower supply and shortage of skillful work-ers.

Instability of rules and regulations be-ing practiced at home and prohibitiveprices of the property are a deterrent tothose interested in Myanmar.

Dr Nyo Nyo Thin, a Hluttaw repre-sentative from Yangon Region said thatforeign investments have not yet floodedinto the country as expected.

‘‘They [potential investors] want firmlaws when they are here to invest as the


UFeature

Ooredoo is one of the tender winners fortelecom Network contract

Shortage of skillful workers is one of the challenges in MyanmarShortage of skillful workers is one of the challenges in Myanmar

High land prices may be a majorobstacle to foreign Investors

40 ⏐ ACUMEN w w w. m ya n m a r b 2 b m a g a z i n e . c o m


ACUMEN ⏐ 41

first step. And the second, they are con-cerned that there are not enough infra-structures such as adequate electric powersupply, water supply and reasonable landprice in our country. Land prices have goneup. Such outrageous land prices may be amajor obstacle to them. That's why, ourcountry cannot attract so many foreign in-vestments as expected," she concluded.

Although it is true that land prices inMyanmar are prohibitive, that is not a de-terrent to foreign investment and as thoseinterested in investing in Myanmar are gi-ants, they will not go back being afraid ofland prices, said Mr. Joseph Schapz, anAmerican economic analyst.

‘‘In my opinion, high land prices arenot a problem for giants, but we've foundit is obstacle to middle-class firms that wantto invest in Myanmar," he added.

Although global giants such as Coca-Cola Company, Ford Car Company and GECompany have entered the country to in-vest, middle-class firms hesitate to invest

here seeing exorbitant land prices.Lack of international banks linked

with global community in managing mon-etary affairs in Myanmar is a problem forthose interested in investing in Myanmar,said U Lu Maw Myint Maung, a rice ex-porter.

‘‘Foreign giants are running their busi-ness linking with international banks. Theydo business making a contract with suchbanks. They can't do business carrying ahuge volume of cash in a country wherethere is no international bank. They mayconsider that it has no guarantee to de-posit their money in the banks at home,"he said.

Moreover, domestic companies linkedwith foreign firms running business athome are facing inadequate electricity andvery poor internet connection and thesepoor infrastructure hindering operatingbusiness, said a person of the companyassociated with Japanese firm.

‘‘We have a contract to get software

ACUMEN ⏐ 41

from a company of Hong Kong. We can'tuse internet as the power goes out everynow and then. Internet connection is sopoor that we cannot contact the firm fromHong Kong. So, they are incapable of send-ing software they have promised us to. Thisproblem affects not only companies athome but also their associate foreign firms,"he said.

In addition to those obstacles, weak-ness of legal system and rule of law, ad-ministration and judiciary may be othermain causes of the inability of foreignersto invest here, some economists say.

Furthermore, political situation thatwill be changed in 2015 are taken intoconsideration by the potential foreign in-vestors, said U Myint Zaw, one of the ex-ecutive members of UMFCCI (The Unionof Myanmar Federation of Chambers ofCommerce & Industry).

‘‘They are watching whether or notreal reforms will come out in 2015 elec-tions. For the time being, both we andpotential foreign investors are playing amatch to test the ability of players and thegovernment is taking part in that match aswell. It is important to see the facts whetherreal reformists will be able to lead the gov-ernment and they will link current progressin reforms with long term reforms. I thinkforeigners are considering they should in-vest here depending on these two facts,"he said.

Economy and development activitieswill be able to be accelerated and employ-ment opportunity can be created on con-dition that huge amount of foreign invest-ments have entered the country, Dr. Nyo

U.S Ambassador to MyanmarDerek Mitchell speaks during an event by Fordin Yangon on April 30 , 2013

U.S Ambassador to MyanmarDerek Mitchell speaks during an event by Fordin Yangon on April 30 , 2013

Globel gaint is now every wherein MyanmarGlobel gaint is now every wherein Myanmar

United Amara Bank (UAB) in Myanmar are nowconnected to Western Union / Aung Kyaw MoeUnited Amara Bank (UAB) in Myanmar are nowconnected to Western Union / Aung Kyaw Moeyanmaryanmar



Myanmar have nurtured somebusinessmen as National EconomicHeroes, they have difficultiesin making joint venturewith foreign investors sincethey are recognized asblack listinthe United States andthe European Union

Nyo Thin said.‘‘If foreign investments are flooding

into the country, there will be many em-ployment opportunities at home. Besideswe may be getting familiar with new tech-nology they will bring with them. I saythat in theory. But in practice, we haven'tseen many foreign investments carryingsuch employment opportunities have en-tered the country as all have known," sheadded.

It is said that Myanmar people be-lieve that they can reach technology andemployment opportunities provided thatforeign investments have entered the coun-try and there are some people at homewant to work in foreign firms that will of-fer a good salary and some scattered allover the world wish to come back to workat home if they have the opportunity ofgetting a nice salary.

‘‘I hope foreign investments. Influx offoreign investments can encourage ourspirits. There will be many employmentopportunities, new high technology if theyhave entered the country. Moreover, ouroutlook will be broader. On the other hand,we need to have learnt things required tobe able to work in their firms," said a youngman learning IT in Yangon.

Although Foreign Investment Lawwas enacted on 2 November 2012 underthe new civilian administration, there aresome restrictions and exception in this law,according to the analysts on economy andlaw.

Legal experts point out that there aresome weaknesses such as calculation ofcapital brought in by official exchange rate,lack of dispute settlement mechanism, nodescription on land use policy and lessprotection in the foreign investment law.

Some of the economists say that for-eign investments have not entered thecountry because they are still watchingrules and regulations that they focus onrather than the foresaid weaknesses.

As foreign firms interested in invest-ing in Myanmar are from different coun-tries, their concern over policy of Myanmarwill be different from one another.

The government should step up themomentum of the state development byproviding necessary assistances for foreigninvestors releasing tax for those who arelikely to invest in the sectors that are ben-eficial to the country in which business-men at home are incapable of investing, alocal businessman said adding that if for-eign investments have entered the coun-try, local businessmen will have to com-pete or cooperate with them.

Several countries that practice social-ist system often nurture local businessmenor cronies called National Economic Heroencouraging them to improve their busi-ness and providing them with necessaryassistances and the rich man from Russiawho has bought Chelsea football club is aNational Economic Hero of Russia.

Although Myanmar have nurturedsome businessmen as National EconomicHeroes, they have difficulties in makingjoint venture with foreign investors since

they are recognized as black list in theUnited States and the European Union, saidMr. Joseph Schapz, an American economicanalyst.

As foreign investments can often bringboth good and bad, they can be turnedinto opportunity for the country providingthat the government has made prepara-tions for civil projects, rule of law and en-vironmental conservation that can supportthe development for the country, said U

Myint Zaw of UMFCCI.Foreign investment tax can reinforce

revenues of Myanmar and good invest-ments can support the sectors of educa-tion and public health, said Mr. JosephSchapz, the American economic analyst.

Analysts conclude that foreign invest-ments will enter Myanmar on conditionthat there are a stability of economy andpolitics and rule of law although the gov-ernment is carrying out political and eco-nomic reforms. A

Feature


adv.pmd 10/10/2013, 8:23 PM11

44 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m November 201344 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m November 2013

B2B Talk

The Trend of Cruise Services.pmd 10/10/2013, 7:46 PM44

ACUMEN ⏐ 45

Professor Dr. Aung Tun Thet: The aim of the talk we haveProfessor Dr. Aung Tun Thet: The aim of the talk we haveProfessor Dr. Aung Tun Thet: The aim of the talk we haveProfessor Dr. Aung Tun Thet: The aim of the talk we haveProfessor Dr. Aung Tun Thet: The aim of the talk we have

arranged today is to discuss ‘The trend of cruise services'.arranged today is to discuss ‘The trend of cruise services'.arranged today is to discuss ‘The trend of cruise services'.arranged today is to discuss ‘The trend of cruise services'.arranged today is to discuss ‘The trend of cruise services'.

In fact we can find tourism industry improving gradually inIn fact we can find tourism industry improving gradually inIn fact we can find tourism industry improving gradually inIn fact we can find tourism industry improving gradually inIn fact we can find tourism industry improving gradually in

our country. We estimate the number of tourists would beour country. We estimate the number of tourists would beour country. We estimate the number of tourists would beour country. We estimate the number of tourists would beour country. We estimate the number of tourists would be

about a million this year. It is estimated to be three millionabout a million this year. It is estimated to be three millionabout a million this year. It is estimated to be three millionabout a million this year. It is estimated to be three millionabout a million this year. It is estimated to be three million

next year. When a lot of tourists come in, the service we cannext year. When a lot of tourists come in, the service we cannext year. When a lot of tourists come in, the service we cannext year. When a lot of tourists come in, the service we cannext year. When a lot of tourists come in, the service we can

offer to the tourists will include not only the pagodas andoffer to the tourists will include not only the pagodas andoffer to the tourists will include not only the pagodas andoffer to the tourists will include not only the pagodas andoffer to the tourists will include not only the pagodas and

religious edifices of our traditional culture but also cruises, areligious edifices of our traditional culture but also cruises, areligious edifices of our traditional culture but also cruises, areligious edifices of our traditional culture but also cruises, areligious edifices of our traditional culture but also cruises, a

section of tourism industry where extraordinary natural beautysection of tourism industry where extraordinary natural beautysection of tourism industry where extraordinary natural beautysection of tourism industry where extraordinary natural beautysection of tourism industry where extraordinary natural beauty

of our country can be shown. So we are going to discuss it.of our country can be shown. So we are going to discuss it.of our country can be shown. So we are going to discuss it.of our country can be shown. So we are going to discuss it.of our country can be shown. So we are going to discuss it.

The three persons who are going to discuss with me are DawThe three persons who are going to discuss with me are DawThe three persons who are going to discuss with me are DawThe three persons who are going to discuss with me are DawThe three persons who are going to discuss with me are Daw

Kalayar Moe (Managing Director, Amara Group), Daw Ce CeKalayar Moe (Managing Director, Amara Group), Daw Ce CeKalayar Moe (Managing Director, Amara Group), Daw Ce CeKalayar Moe (Managing Director, Amara Group), Daw Ce CeKalayar Moe (Managing Director, Amara Group), Daw Ce Ce

Htwe (Managing Director, Aung Su Paing Group Co., Ltd.)Htwe (Managing Director, Aung Su Paing Group Co., Ltd.)Htwe (Managing Director, Aung Su Paing Group Co., Ltd.)Htwe (Managing Director, Aung Su Paing Group Co., Ltd.)Htwe (Managing Director, Aung Su Paing Group Co., Ltd.)

and Daw Tint Tint Lwin (Managing Director, Irrawady Prin-and Daw Tint Tint Lwin (Managing Director, Irrawady Prin-and Daw Tint Tint Lwin (Managing Director, Irrawady Prin-and Daw Tint Tint Lwin (Managing Director, Irrawady Prin-and Daw Tint Tint Lwin (Managing Director, Irrawady Prin-

cess II River Cruise). It's interesting and cheerful that all thecess II River Cruise). It's interesting and cheerful that all thecess II River Cruise). It's interesting and cheerful that all thecess II River Cruise). It's interesting and cheerful that all thecess II River Cruise). It's interesting and cheerful that all the

three MD-s are ladies. It is also a sign of the economic devel-three MD-s are ladies. It is also a sign of the economic devel-three MD-s are ladies. It is also a sign of the economic devel-three MD-s are ladies. It is also a sign of the economic devel-three MD-s are ladies. It is also a sign of the economic devel-

opment of our country. In doing business, a remarkable thingopment of our country. In doing business, a remarkable thingopment of our country. In doing business, a remarkable thingopment of our country. In doing business, a remarkable thingopment of our country. In doing business, a remarkable thing

of our country different from others is that there are manyof our country different from others is that there are manyof our country different from others is that there are manyof our country different from others is that there are manyof our country different from others is that there are many

firms headed by ladies. I'm very satisfied with it. It 's alsofirms headed by ladies. I'm very satisfied with it. It 's alsofirms headed by ladies. I'm very satisfied with it. It 's alsofirms headed by ladies. I'm very satisfied with it. It 's alsofirms headed by ladies. I'm very satisfied with it. It 's also

enviable that all the three entrepreneurs handling cruise ser-enviable that all the three entrepreneurs handling cruise ser-enviable that all the three entrepreneurs handling cruise ser-enviable that all the three entrepreneurs handling cruise ser-enviable that all the three entrepreneurs handling cruise ser-

vices are ladies. First of all, may I invite Daw Kalayar Moe ofvices are ladies. First of all, may I invite Daw Kalayar Moe ofvices are ladies. First of all, may I invite Daw Kalayar Moe ofvices are ladies. First of all, may I invite Daw Kalayar Moe ofvices are ladies. First of all, may I invite Daw Kalayar Moe of

Amara Group to explain how you started your business?Amara Group to explain how you started your business?Amara Group to explain how you started your business?Amara Group to explain how you started your business?Amara Group to explain how you started your business?

Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe: It has been 10 years that we've workedwith Amara River Group since 2003. It was a tourism businesswhen we started it. When we gave service for tourism in therivers like the Ayeyarwady and the Chindwin, including theYangon River we found demands of tourists from our mainmarket, German market. When we were about to begin thebusiness, there was a ship plying first as ‘Road to Mandalay'.The volume of their business was extensive. We intended tobuild a cruise ship and run a family business. Then we couldstart it. When the travel arrangements of the tourists were learntit was found that theirs were Yangon-Mandalay-Bagan tour,Upper Myitkyina tour and the mountain climbing tour for theirinterest of risk-taking tours. Similarly, they were also inter-ested in folk concerts of indigenous people. When they went tothe Naga festival, the Ayeyarwady and the Chindwin riversbecame their interest. Then our interest in this business beganwhen we ourselves went there with the guests to arrange theNaga festival. It was a trip down the Chindwin River. Althoughwe liked the Chindwin, we had difficulties when we transportedthe tourists there. As we found the Ayeyarwady in a position tosupport the business like a highway of Myanmar, we startedfrom it. The first ship we started with was ‘Amara River Cruise I'.

ACUMEN ⏐ 45



It has a total of seven cabins. We renovated a Myanmar tradi-tional cargo ship in the Ayeyarwady so that it could be used fortransportation and the guests could stay and eat on board. Inthis way we started with a seven-cabin ship. The second ship'Amara River II' was built during 2008-2009 and launched in2009. The operation of Boat I and Boat II has gained 10 yearexperience so far.

Professor Dr. Aung Tun Thet: Thanks. Ten-year experience isProfessor Dr. Aung Tun Thet: Thanks. Ten-year experience isProfessor Dr. Aung Tun Thet: Thanks. Ten-year experience isProfessor Dr. Aung Tun Thet: Thanks. Ten-year experience isProfessor Dr. Aung Tun Thet: Thanks. Ten-year experience is

not a small thing. Then could you please present your begin-not a small thing. Then could you please present your begin-not a small thing. Then could you please present your begin-not a small thing. Then could you please present your begin-not a small thing. Then could you please present your begin-

ning, Daw Ce Ce Htwe?ning, Daw Ce Ce Htwe?ning, Daw Ce Ce Htwe?ning, Daw Ce Ce Htwe?ning, Daw Ce Ce Htwe?

Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe: Our major company is ‘Royal Marine Engi-neering Company'. Aung Su Paing is run as a subsidiary com-pany. The construction and renovation of the ships were startedat Sinmalite Dockyard in 1998. The business was carried outunder a contract. As we wanted to build a ship of our own, webought a design of a ship body from Australia and Myanmarengineers of our company built the ‘DORA Luxury Boat' withinternational standards under the guidance and supervision ofMyanmar Dockyard. The construction finished in 2010. Thenwe started the river cruise in the Yangon River from the 2011-2012 season. It's only two years now. ‘Royal Irrawady' is a shipbuilt with the standards of Myanmar Dockyard in January, 2013and it has a capacity of 150 passengers. The first ship, DORAholds only 30 people. As this ship can accommodate 150 people,wedding receptions and dinner parties can be held in the YangonRiver.

Professor Dr. Aung Tun Thet: May I request Daw Tint TintProfessor Dr. Aung Tun Thet: May I request Daw Tint TintProfessor Dr. Aung Tun Thet: May I request Daw Tint TintProfessor Dr. Aung Tun Thet: May I request Daw Tint TintProfessor Dr. Aung Tun Thet: May I request Daw Tint Tint

Lwin to tell us how you started your business?Lwin to tell us how you started your business?Lwin to tell us how you started your business?Lwin to tell us how you started your business?Lwin to tell us how you started your business?

Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin: The business has been started since ourchildhood. Our father owned a small boat at that time. It some-times carried goods such as timber. Sometimes our family tookvacation trips in this ship. I had a natural bent for travelling byship when I was in my second and third standards at school. Iwas very happy when I took vacation with my parents duringmy summer holiday. My father wanted to expand this businessbut he failed due to various factors and conditions of that time.It's more than 14 or 15 years until now that I've been workingas a German language tour guide since the time before thefounding of this company. At that time, most of the guests forwhom I took responsibility came from Europe. Many of themwere Germans and those from Switzerland. When most of theseEuropeans buy a program, it includes not only a classic tour ofvisiting pagodas but also adventure, tracking or river cruise.The types they like best are soft tracking and river cruise com-bined with a partial classic tour. When I worked as a Germantour guide in a Swiss company, most of the programs I receivedwere those with a cruise. I hardly had to get off the ship 13 or

14 years ago. I saw the needs of the guests while travelling byship. Most of the foreigners wanted to get off the ship and seethe daily life of Myanmars taking a partial of time along theriver. They wanted to meet people friendly. After working as atour guide for long, I told the company that I wanted to stopworking there and that I was going to establish my own com-pany. Then I first founded a travels and tours company. As Ididn't have a large background in Myanmar, I started with asmall ship built of teak which I could afford. It's just a daycruise and had no cabins. It plied between Mandalay and Baganbut it had a bar, a souvenir shop and a restaurant on board asluxury items. We made comfortable places for the guests on theship. As home stays were not allowed at that time, the ship hadto take from 8 to 10 hours for sailing between Mandalay andBagan as a day cruise. The majority of the guests demandedthat one or two night-stays on the way would be better. I con-sulted with my husband about the demand and bought a largecruise ship after working one or two years with a day cruise.There were two ships, Irrawaddy Princess I and II. As IrrawaddyPrincess I needed a lot of repair, I took Irrawaddy Princess II.It had 22 cabins. I reserved two rooms for the guide and thetour leader and operated with the remaining 20 cabins. Al-though Cruise II superficially looked like iron work, all its inte-

B2B Talk


ACUMEN ⏐ 47

rior was made of teak. I made all the renovation of decorationand all other things in European taste to meet the liking of theguests. Now, nearly all the cabins have been booked until 2016.As we couldn't meet the demand, we built another cruise ship.Now we have three river cruise ships. We operate them byaccepting Travels and Tours, other tours and all our agents. AsI myself worked as a tour guide, I myself prepare programs,creating events to avoid monotony by putting demonstrationslike playing cane ball on the bank on the way between enter-tainments. Now we have achieved success to a certain extent.

Professor Dr. Aung Tun Thet:Professor Dr. Aung Tun Thet:Professor Dr. Aung Tun Thet:Professor Dr. Aung Tun Thet:Professor Dr. Aung Tun Thet: Thanks. Now it is found thatThanks. Now it is found thatThanks. Now it is found thatThanks. Now it is found thatThanks. Now it is found that

you are different from each other as one has ten year experi-you are different from each other as one has ten year experi-you are different from each other as one has ten year experi-you are different from each other as one has ten year experi-you are different from each other as one has ten year experi-

ence, another has only short term experience and the thirdence, another has only short term experience and the thirdence, another has only short term experience and the thirdence, another has only short term experience and the thirdence, another has only short term experience and the third

has long term experience. There are still some things I wanthas long term experience. There are still some things I wanthas long term experience. There are still some things I wanthas long term experience. There are still some things I wanthas long term experience. There are still some things I want

to know. The Ayeyarwady is a highway and the British wereto know. The Ayeyarwady is a highway and the British wereto know. The Ayeyarwady is a highway and the British wereto know. The Ayeyarwady is a highway and the British wereto know. The Ayeyarwady is a highway and the British were

very much interested in the upper parts like Bamaw, Katharvery much interested in the upper parts like Bamaw, Katharvery much interested in the upper parts like Bamaw, Katharvery much interested in the upper parts like Bamaw, Katharvery much interested in the upper parts like Bamaw, Kathar

and Myitkyina during the colonial era when we were young.and Myitkyina during the colonial era when we were young.and Myitkyina during the colonial era when we were young.and Myitkyina during the colonial era when we were young.and Myitkyina during the colonial era when we were young.

And the next is the Chindwin. But it was long ago. What hasAnd the next is the Chindwin. But it was long ago. What hasAnd the next is the Chindwin. But it was long ago. What hasAnd the next is the Chindwin. But it was long ago. What hasAnd the next is the Chindwin. But it was long ago. What has

not been included in the talk is the Thanlwin River. Its totalnot been included in the talk is the Thanlwin River. Its totalnot been included in the talk is the Thanlwin River. Its totalnot been included in the talk is the Thanlwin River. Its totalnot been included in the talk is the Thanlwin River. Its total

length is almost like that of the Ayeyarwady. What I'd likelength is almost like that of the Ayeyarwady. What I'd likelength is almost like that of the Ayeyarwady. What I'd likelength is almost like that of the Ayeyarwady. What I'd likelength is almost like that of the Ayeyarwady. What I'd like

you to discuss in the second part is about the service cur-you to discuss in the second part is about the service cur-you to discuss in the second part is about the service cur-you to discuss in the second part is about the service cur-you to discuss in the second part is about the service cur-

rently offered. The next thing I want to discuss is about therently offered. The next thing I want to discuss is about therently offered. The next thing I want to discuss is about therently offered. The next thing I want to discuss is about therently offered. The next thing I want to discuss is about the

targets. It is found that only foreign tourism is targeted. I'dtargets. It is found that only foreign tourism is targeted. I'dtargets. It is found that only foreign tourism is targeted. I'dtargets. It is found that only foreign tourism is targeted. I'dtargets. It is found that only foreign tourism is targeted. I'd

like you to discuss whether you have an idea for the domesticlike you to discuss whether you have an idea for the domesticlike you to discuss whether you have an idea for the domesticlike you to discuss whether you have an idea for the domesticlike you to discuss whether you have an idea for the domestic

market at the time when the economy improves. I'd also likemarket at the time when the economy improves. I'd also likemarket at the time when the economy improves. I'd also likemarket at the time when the economy improves. I'd also likemarket at the time when the economy improves. I'd also like

you to discuss route and service.you to discuss route and service.you to discuss route and service.you to discuss route and service.you to discuss route and service.

Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe: As you have said earlier, our main focus ison tourism. As a service, we especially focus on foreigners whocome to visit our country, Myanmar. If people are interested inwater-ways, take time for that and choose the water-ways totravel, it is cheerful. Why? They come here out of their wayfrom foreign countries to see the beauties here. To come andsee so, they have to travel thousands of miles. It's more thanfive thousand miles from Germany. Then they have to takemore time to go on a cruise here. For example, if their normalfixed time is two weeks, they have to take three weeks for acruise and if it is three weeks, they have to take four weeks forit. They have to take more time from their timeline. They enjoythe natural environment by going on a cruise, taking more time.They must also spend more money for cruising than for theirnormal classic tour. Why do they want to cruise by taking moretime and spending more money? It is a question all of us shouldtake interest in. They cherish beauty. If Myanmar people valuebeauty, they can also enjoy these beauties cheaply. It will bebeyond measure if Myanmars spend their time in these rivercruises. The market will become larger. Sightseeing can be com-bined with culture. It's the strength of the Ayeyarwady. Forexample, they can do sightseeing while making a pilgrimage.They can also set a target to go on a family recreation tour. Tobe able to do so, we need to operate our cruises more exten-sively than we are doing now. To be able to do so, we will haveto increase the investment if it is required in the private sector.But the assistance of the government is also necessary. If thesetwo things are combined, what you said earlier will happen.For example, the Chao Phya River is in Thailand. There is dailycruise in that river. It is for foreigners as well as for local people.In addition they have things like line boats. In Venice in Italy,there are line boats for example. Daily and weekly return tick-ets are available there. For every day trip to the office, monthlyreturn tickets are also available. Such things are not only inLondon but also in Paris. They are arranged both for foreignersand for local people. When they are learnt, it is found that allthe cruises there are arranged neither only by the governmentnor only by the private businesses. The government arrangesthe business by running cruises where they can afford and theprivate businessmen also make arrangements. Even if suchcruises are to be arranged for only one tenth of our 60 millionpeople, how many will our requirement be? We can considerand see how many cruises the government will have to ar-range and how many cruises the private sector will have toarrange? It will be beyond measure if the uses and needs in-crease in this way.



Professor Dr. Aung Tun Thet: What kinds of service RoyalProfessor Dr. Aung Tun Thet: What kinds of service RoyalProfessor Dr. Aung Tun Thet: What kinds of service RoyalProfessor Dr. Aung Tun Thet: What kinds of service RoyalProfessor Dr. Aung Tun Thet: What kinds of service Royal

Marine is offering? Could you please discuss, Daw Ce Ce Htwe?Marine is offering? Could you please discuss, Daw Ce Ce Htwe?Marine is offering? Could you please discuss, Daw Ce Ce Htwe?Marine is offering? Could you please discuss, Daw Ce Ce Htwe?Marine is offering? Could you please discuss, Daw Ce Ce Htwe?

Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe: Our DORA Cruise has only short trips. Thecruises we are operating are sightseeing cruise, sunset cruise,morning cruise, dinner cruise and within the day Twante cruise.The capacity of the boat is about 30 and it runs every day. Werun the survey trips of international business groups studyingalong the Yangon River as chartered boats. Royal Irrawaddy ismade by targeting events. We launched it in the Yangon Riverin January, 2013, on account of the demand of the customers.The local market emerged at that time, sir. They emerged aswedding receptions, birthday parties and annual dinners. Wewill also use it for sightseeing. Many people began to take in-terest in the Yangon River after we targetted events and localmarket. Then as they began to hold wedding receptions andrecollection events as an unusual thing, we got our local mar-ket.

Professor Dr. Aung Tun Thet: Are there effects if it is duringProfessor Dr. Aung Tun Thet: Are there effects if it is duringProfessor Dr. Aung Tun Thet: Are there effects if it is duringProfessor Dr. Aung Tun Thet: Are there effects if it is duringProfessor Dr. Aung Tun Thet: Are there effects if it is during

the rainy season?the rainy season?the rainy season?the rainy season?the rainy season?

Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe: Of course, there are. We have to suspend ouroperations for three months during the rainy season. During thesuspension, the ships are docked and maintenance is carriedout.

Professor Dr. Aung Tun Thet: How are you giving serviceProfessor Dr. Aung Tun Thet: How are you giving serviceProfessor Dr. Aung Tun Thet: How are you giving serviceProfessor Dr. Aung Tun Thet: How are you giving serviceProfessor Dr. Aung Tun Thet: How are you giving service

extensively, Daw Tint Tint Lwin?extensively, Daw Tint Tint Lwin?extensively, Daw Tint Tint Lwin?extensively, Daw Tint Tint Lwin?extensively, Daw Tint Tint Lwin?

Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin: For the time being, the service given tothe foreigners is not alone. Sometimes, if local people make thebooking, we issue a special rate for their tours. Local peoplefrequently charter the ships. Sometimes, if a banking family of abank or a factory family charters the ship as a group, we dothings like allowing three or four persons to stay in a doublecabin unlike foreigners, putting up tents for those who want tosleep on the sun deck, making extra beds in the cabin for thefamilies. We want to give local price to all local people. Wewant them know these programs extensively. If local peoplemake advance booking, we make it by charter. If they arrangethe charter as companies, we give them a special rate as anincentive. We are now presenting unusual programs. We don'tlet foreigners get off to drink toddy at the villages as we areconcerned that they might have diarrhoea. But for local peoplewe prepare such special programs of their liking as letting themhave toddy with fried sparrow. Regarding discount, as the pe-riod from October to April is the tour season, the tourists havea habit of making the booking six or seven months in advance.It's not true that we don't accept local people because of the

tourists. It is because the cruises are full of bookings. Localcustomers make the booking only a month in advance. So novacancies are left for them and that's why we are unable toaccept them. When local customers make the booking, we givethem the same price as the tourist service. As we accept localcustomers, they can see where to conserve the natural environ-ment and what kind of business might work well in whichmarket along the river. There are places along the river wherethere is no hotel or inn or line boat. But businesses can prosperthere. Such places can get sophisticated. One's own children orcompany staff may gain experience in the villages during theholiday.

Professor Dr. Aung Tun Thet: Now we've talked about theProfessor Dr. Aung Tun Thet: Now we've talked about theProfessor Dr. Aung Tun Thet: Now we've talked about theProfessor Dr. Aung Tun Thet: Now we've talked about theProfessor Dr. Aung Tun Thet: Now we've talked about the

beginnings, the given service and the need of governmentbeginnings, the given service and the need of governmentbeginnings, the given service and the need of governmentbeginnings, the given service and the need of governmentbeginnings, the given service and the need of government

assistance. Then I'd like to know what obstacles you have toassistance. Then I'd like to know what obstacles you have toassistance. Then I'd like to know what obstacles you have toassistance. Then I'd like to know what obstacles you have toassistance. Then I'd like to know what obstacles you have to

overcome in striving to survive. Seasons are natural. We can'tovercome in striving to survive. Seasons are natural. We can'tovercome in striving to survive. Seasons are natural. We can'tovercome in striving to survive. Seasons are natural. We can'tovercome in striving to survive. Seasons are natural. We can't

do anything about it. Apart from the seasons, which part needsdo anything about it. Apart from the seasons, which part needsdo anything about it. Apart from the seasons, which part needsdo anything about it. Apart from the seasons, which part needsdo anything about it. Apart from the seasons, which part needs

government assistance? Where is it needed regarding invest-government assistance? Where is it needed regarding invest-government assistance? Where is it needed regarding invest-government assistance? Where is it needed regarding invest-government assistance? Where is it needed regarding invest-

ment? And… we've talked about home stay. What obstaclesment? And… we've talked about home stay. What obstaclesment? And… we've talked about home stay. What obstaclesment? And… we've talked about home stay. What obstaclesment? And… we've talked about home stay. What obstacles

are there regarding home stay? If this industry is to be run,are there regarding home stay? If this industry is to be run,are there regarding home stay? If this industry is to be run,are there regarding home stay? If this industry is to be run,are there regarding home stay? If this industry is to be run,

the obstacles of this indus-the obstacles of this indus-the obstacles of this indus-the obstacles of this indus-the obstacles of this indus-

try must be known. If wetry must be known. If wetry must be known. If wetry must be known. If wetry must be known. If we

know something from thoseknow something from thoseknow something from thoseknow something from thoseknow something from those

who actually do the busi-who actually do the busi-who actually do the busi-who actually do the busi-who actually do the busi-

ness, we can submit it to theness, we can submit it to theness, we can submit it to theness, we can submit it to theness, we can submit it to the

responsible persons.responsible persons.responsible persons.responsible persons.responsible persons.

Daw Kalayar Moe : Daw Kalayar Moe : Daw Kalayar Moe : Daw Kalayar Moe : Daw Kalayar Moe : If I haveto talk about the Ayeyarwadyagain according to my ex-perience, it will be morecorrect if we say they aredifficulties and needs insteadof obstacles. The departmentsconcerned issued businesslicenses to us in accordancewith the specifications. Wehave to get two business li-censes from Tourism andWaterways Departments.For example, ships havespecifications. Are ships builtto these specifications? Ser-vice staff and all the techni-cians who operate the shipincluding the captain havespecified licenses. This busi-ness is to be run with thesaid two specified licenses.There are not only full co-

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ACUMEN ⏐ 49

operation but also encouragement in this respect. And that'swhy we can run the business. It's an undeniable fact. Our shipis based in Mandalay. We go up until we reach Bamaw. We godown until we reach Bagan. The guests take more interest onlyin such things. If the ship is chartered, we go up to Salay andMagway. Regular cruises are Mandalay-Bamaw and Bamaw-Mandalay-Bagan cruises. An additional cruise is Magway cruise.If you go on a Magway cruise, you will be transported to Yangon-Pyay-Magway by car from Yangon highway. You will have toget on the ship there and go upward to Bagan. Previously asthere were no direct flights to Bamaw, we had to transport theguests from Yangon to Mandalay and from Mandalay toMyitkyina and the customers go down by boat or by car tomeet each other in Bamaw. Then they go down from Bamaw.Regarding the present problems with update information, wa-terway maintenance is necessary. Erosion of river banks ischanging from year to year according to the nature of rivers.The flow of water also has changes. Those changes are causedby the changes of natural environment. There are also changesof waterways caused by human beings. Although theAyeyarwady seems great, it has weaknesses too. From our point

of view, it has a specified size like a motor road as it is wide. Asa motor road has potholes, the Ayeyarwady also has sand-banks. Potholes on the road are visible. In the waterways aresandbanks and shallows. We can't handle ships at our will. If aship's draught is three feet, we can sail it only when the depthof water is more than three feet. If the ship runs aground at aninvisible shallow, there will be consequences. Ships and boatsplying through that passage will be blocked. It is dangerous forthem because they can't dodge the place they must dodge. If abigger ship moved toward us, it is dangerous for us. It is noteasy to put a ship to a stop. If the ship is aoil tanker or a logcarrier or a cement carrier, the difficulty will be the greatest.It's only one of many difficulties faced in the waterway. There'sanother difficulty too. For example, let's see a trip betweenBamaw and Mandalay. If it is a five day trip, as it is a luxurycruise, food for the clients, their daily excursion and all theservices to enable them to reach the specified places in timehave already been arranged in a complete program. As thebooking of the programs is made by our clients at least twoyears in advance, we have to issue our tour package two yearsin advance. Or we have to upload it on our website at once. All



these things are arranged in advance. It is not easy to changethem. How do we adjust it if the waterway reaches this situa-tion? If the trip is from Mandalay to Bamaw, we must findwhere the guest will go from Bamaw. Does he want to head forMandalay or Bagan or Ngapali? We have to continue givingservice. At that time, we have to co-operate with tour agencieswhich are also our colleagues. In doing so, if the guest doesn'tarrive at the airport at the specified time, there will be no planethere. Previously airlines were very limited, sir. Only MyanmarAirways and Air Bagan were there at that time. Now there aremany lines including those which run twice a week. But if thename' Bamaw' is said, the main problem is the importance ofreaching the airline in time. Another problem is that when theyreach Bamaw, they want to see Myitkyina. ‘‘Why must they gothere by car or by airdespitethe flowing river?" The touristsoften argue so. The draught of our ship doesn't allow us to goupstream. The river is narrow and the flow of water is strong inthe north of Bamaw. As there are also rocks, our ship can'tcontinue its upstream journey. Previously, arrangements weremade to reach there by local boats within a day. But now wecan no longer do it. From Bamaw to Myitkyina is a 5 or 6 hourjourney. The motor road is also the same. But we make an

arrangement to go from Bamaw to Myitkyina and from Myitkyinato Bamaw by air as an alternative. Otherwise we make ar-rangements to charter a flight depending on the financial situa-tion of our guests. It is a difficulty regarding airlines. The next one is health service. Throug out the history ofour ship, the majority of the guests are old-aged and middle-aged. As they are pensioners, they have free time. They havealso money to spend. We must care for old-aged people. Al-though they are in good health today, they are not sure to be sothe next day. We have experience. A tourist was not well then.The whole body couldn't move. He got a panic attack. At thattime, we were told to hire a helicopter. It was because he hadfully comprehensive insurance in his native country. A fullycomprehensive insurance cover includes carrying him from theplace wherever he is to the hospital recognized as the best viaan airfield. It has already been paid for taking action within anhour or half an hour. At that time, our ship was moored to asandbank. We had to call a helicopter to come and fetch himfrom the sandbank. We had information provided by the Minis-try of Tourism. We had telephone numbers to call helicoptersin emergency cases. But unfortunately, it coincided with a pub-lic holiday and we reached nowhere then. So we wish to get

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ACUMEN ⏐ 51

such a helicopter service not only for our tour but also for allothers. There's one more thing. As we have to promote tourism,we will run the operation as adventure instead of cultural tour.In that case, such a service is vital if some accident happens. Itis not easy to build a large airfield but it is possible to build asmall helicopter field. As it is the need of only one or twoindividuals instead of a group of people, the State will have anincome if it runs a small helicopter service. If private business-men do it, they will earn money. It is our actual need and it isalso one of the questions raised at every meeting. Another one is miserable. It was a thing we wanted to dofor the guests. We wanted to give them necessary service intime but it was sorrowful when it was impossible to do so. Thatday, we hired a motor boat for a sick guest at once. We madethings in the boat comfortable for him as much as possible andsent him to Mandalay. For that purpose, we made preparationsabout where cars, boats and telephones were available in thetowns, nearest towns along the river. If we go to Bamaw, theyare the towns like Mandalay and Myitkyina for example. Wehave addresses and phone numbers of clinics and their avail-able doctors in large cities and we also have contracts madewith them. An ambulance is also arranged to come from the

nearest place in Mandalay. Then we couldmake arrangements to carry him fromMandalay to Bangkok via Yangon as soonas possible. The guest survived and thingswere okay. I'm discussing it as it's one ofthe precautions tour agencies must takeexpecting that something may happen sometime in the future.

Professor Dr. Aung Tun Thet: Daw Ce CeProfessor Dr. Aung Tun Thet: Daw Ce CeProfessor Dr. Aung Tun Thet: Daw Ce CeProfessor Dr. Aung Tun Thet: Daw Ce CeProfessor Dr. Aung Tun Thet: Daw Ce Ce

Htwe, you are plying in Yangon River. ButHtwe, you are plying in Yangon River. ButHtwe, you are plying in Yangon River. ButHtwe, you are plying in Yangon River. ButHtwe, you are plying in Yangon River. But

still you may have difficulties. Could youstill you may have difficulties. Could youstill you may have difficulties. Could youstill you may have difficulties. Could youstill you may have difficulties. Could you

please discuss it?please discuss it?please discuss it?please discuss it?please discuss it?

Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe: The difficulty is the short-age of jetties. Some are under repair. Somehave already been leased by individuals andwe can use only one or two jetties atBotahtaung. If possible, we'd like to haveseparate jetties which are safe and clean sothat passengers can get on and get off theship free from loading and unloading. We'dlike to get this assistance. Another difficultyis the scarcity of inland riverine waterwaycaptains and chief engineers. As skillful cap-tains are getting old now, new generationsshould be nurtured and produced in a largenumber. Next difficulty is sandbank forma-tions in the rivers. Near Yangon, foreigners

love to visit villages along Panhlaing River. They are on theother side of Kyimyindaing. As sandbanks formed in PanhlaingRiver last year, we had to stop all programs beginning fromDecember. There are a few problems in maintaining the water-ways in the rivers. The main difficulty is boarding and gettingoff. Sometimes the passengers have many difficulties when theyhave to walk across the ships being loaded up with rice bags.

Professor Dr. Aung Tun Thet: What are the difficulties youProfessor Dr. Aung Tun Thet: What are the difficulties youProfessor Dr. Aung Tun Thet: What are the difficulties youProfessor Dr. Aung Tun Thet: What are the difficulties youProfessor Dr. Aung Tun Thet: What are the difficulties you

are facing, Daw Tint Tint Lwin? Would you like to give someare facing, Daw Tint Tint Lwin? Would you like to give someare facing, Daw Tint Tint Lwin? Would you like to give someare facing, Daw Tint Tint Lwin? Would you like to give someare facing, Daw Tint Tint Lwin? Would you like to give some

advice?advice?advice?advice?advice?

Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin: The difficulties are not the ones we arefacing in the waterways. The difficulties we are facing now arethat Myanmar's economy has become an open economy andForeign Direct Investments (FDI) enter the country. They areincomparably far better than us in terms of financial strengthand background. Their finance, their international service, theirservice on board and their technology are far better than ours.But they have weaknesses too. If local businessmen are pro-vided with financial assistance by the government, we can eas-ily compete against their strengths. They also have weaknesses.They will catch up with local businessmen only after remedy-ing these weaknesses by taking time. It's because local busi-nessmen have worked here for many years and they have ex-perience. They know every part of business in detail. Experi-ence speaks depending on time and circumstance. A personwith riverine experience knows more than them. He can easilysolve the problems in detail. Presently, foreigners with bettertechnology, finance and facilities must take many years of timeto remedy their weaknesses. There are many young skillfultechnicians and businesspersons in this country. As they haveno financial strength, they have to work for those foreigners. Ifthe government knows these professional businesspersons thor-oughly and banks can provide them with financial assistance,Myanmar doesn't need many FDI-s. It doesn't mean that theentrance of FDI-s is not good. It's good. Human resources maydevelop regionally. Poverty may be eradicated gradually. Short-age of job opportunities may be lessened. They will offer goodsalaries. But there are difficulties between local people and them.Their ships are Five Stars. The number of workers who con-form with Five Star standards is very small. In the villagesalong the river are a lot of young people who cannot continuetheir education after finishing matriculation and who haven'tlearnt anything since childhood. They earn their living byworking in their parent's traditional farming. If the governmenttakes responsibility, conducts free training courses for all suchyoung people giving them free boarding and produces techni-cians, it will be conducive to the skilled worker requirement ofthese FDI-s. It is impossible for the local businesses to pay FiveStar level salaries. There are also many requirements to sup-



port them to do so. Presently in Myanmar, river cruise can beoperated only from October to April. Sometimes during the rainyseason, there are many difficulties because of heavy rains. Sail-ors have to work only one season for their living. Foreign in-vestors don't pay when there is no work. There are some casesin which they give half pay. We realize these difficulties as weare local businesspersons. We know that they will leave forother jobs if they are given half pay. So we give them full pay.But we make them work on the ship alternatively. It is neces-sary for those from the cruise to support them sufficiently dur-ing the rainy season. It is not true that young people in thevillages are lazy. They have no job opportunities and there isalso nobody to guide them. If we lead to give them three-or-four- month training courses free of charge, skilled workerswill easily be available when FDI-s enter or local companiesdevelop. Another difficulty is that in Myanmar waterways, ships arenot convenient to be operated by navigators as in other coun-tries. Waterways change every day. In the rivers, there aresigns that show the depth of water. As the waterway changesdaily and weekly, the signs are poor. There are cases in whichsigns of previous week haven't been changed. So ships runaground unnecessarily. In such situations, it is not convenientfor local cruises to make phone calls to the nearest station, calla tugboat and pull down the ship or blow the sand or hire aboat to send the guests to the nearest village. Although we haveenough lifeboats, they are not comfortable for the guests. It willbe convenient if there are nearest small stations along the river.

As Daw Kalyar discussed earlier, helicopter service will bebetter. But now the number of tourists who will enter in one ortwo years cannot be estimated definitely. As how the situationswill change is not known definitely, it may take a long time todo it. But there are ways to solve the current problem. Forexample, some villages don't have even a nurse. Some have noclinic. If the government assigns at least a first aider or a nurseor a doctor in each village as part of a health care program, wecan ask for help in an emergency case. For example, four majorcases which commonly occur in places like Pakokku are stroke,heart attack, dehydration or accidents like falling from slipping.When such cases happen, all the managers and sailors haveexperience and there is at least one person who has completeda relevant training course among them. Although we can giveassistance temporarily in such a case, the hospital does notaccept the patient because he is a foreigner. There were casesin which we have to come back in a life and death situation.Regarding this, I had many difficulties when I worked as a tourguide and I still have such difficulties now. A woman touristonce suffered from heart attack. It coincided with the time whentelephone connections broke down. Only a ship telephone wasserviceable. There are weaknesses in communication. As wehave to use Chinese-made devices which are easily available,things are not convenient in reality. As a local solution, with thehelp of sailors, we have acquired the phone numbers of hotelsand guest houses of near-by towns, village heads and so on. Asanother one, we acquired the phone numbers of specialists inYangon and designed programs to explain the situation to them

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and get their advice. Then we will have to carry the patient viathe nearest jetty to Mandalay, Yangon or Bagan as they areentitled to receive treatment only there. It will be very conve-nient if foreigners are accepted by the hospitals in near-by town-ships.

Professor Dr. Aung Tun Thet: I'm wondering whether all ofProfessor Dr. Aung Tun Thet: I'm wondering whether all ofProfessor Dr. Aung Tun Thet: I'm wondering whether all ofProfessor Dr. Aung Tun Thet: I'm wondering whether all ofProfessor Dr. Aung Tun Thet: I'm wondering whether all of

you have health insurance as companies. Tourists have theiryou have health insurance as companies. Tourists have theiryou have health insurance as companies. Tourists have theiryou have health insurance as companies. Tourists have theiryou have health insurance as companies. Tourists have their

own insurances, right. Then do your companies have yourown insurances, right. Then do your companies have yourown insurances, right. Then do your companies have yourown insurances, right. Then do your companies have yourown insurances, right. Then do your companies have your

insurances when these things happen?insurances when these things happen?insurances when these things happen?insurances when these things happen?insurances when these things happen?

Daw Kalyar Moe:Daw Kalyar Moe:Daw Kalyar Moe:Daw Kalyar Moe:Daw Kalyar Moe: We tell our guests to take out fully compre-hensive insurance when they left Germany. Insurance here isbeginning now. But to talk about the past experience, the insur-ance didn't cover the guests as there was no government insur-ance at that time. But we have life insurance for our staff. Wedo it as a stipulation. I don't know in detail what arrangementsour colleagues have made.

Professor Dr. Aung Tun Thet: How about you, Daw Ce CeProfessor Dr. Aung Tun Thet: How about you, Daw Ce CeProfessor Dr. Aung Tun Thet: How about you, Daw Ce CeProfessor Dr. Aung Tun Thet: How about you, Daw Ce CeProfessor Dr. Aung Tun Thet: How about you, Daw Ce Ce

Htwe?Htwe?Htwe?Htwe?Htwe?

Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe: We have insurance for the ship and the crewbut not for the guests for the time being. It must be done defi-nitely later.

Professor Dr. Aung Tun Thet: Daw Tint Tint Lwin, are youProfessor Dr. Aung Tun Thet: Daw Tint Tint Lwin, are youProfessor Dr. Aung Tun Thet: Daw Tint Tint Lwin, are youProfessor Dr. Aung Tun Thet: Daw Tint Tint Lwin, are youProfessor Dr. Aung Tun Thet: Daw Tint Tint Lwin, are you

also the same?also the same?also the same?also the same?also the same?

Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin: Of course, a little similar. Generally, allforeigners have taken out health insurance before they come toMyanmar. But it is necessary to give them assistance from ourside. Once there was a crack in the tiling of a bathroom on ourship. A guest tripped over it and cut his foot. When we had hiswound treated with some medicine, he was satisfied with ourtreatment. But another one was not satisfied with our treatmentat all. As he had an insurance cover, he can receive a refund fora document from the clinic to which he was brought or for areceipt of his expenses. From our side too, we refunded him hiscabin charges as a special arrangement but he didn't accept it.In fact, we need to be ready to respond by taking responsibilitybecause the injury is caused on our ship. Only then, will they besafe on the ship. As the injury was caused due to the weaknessof the ship, the ship assumed the responsibility depending onthe extent of the injury.

Professor Dr. Aung Tun Thet: You mean companies have noProfessor Dr. Aung Tun Thet: You mean companies have noProfessor Dr. Aung Tun Thet: You mean companies have noProfessor Dr. Aung Tun Thet: You mean companies have noProfessor Dr. Aung Tun Thet: You mean companies have no

insurance although tourists have their own insurance?insurance although tourists have their own insurance?insurance although tourists have their own insurance?insurance although tourists have their own insurance?insurance although tourists have their own insurance?

Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin: We're going to start now. We'll start tak-ing out all kinds of insurance with Kanbawza Bank.

Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe: We've already done the part that must bedone with the government. There are insurances which willcome out in Myanmar as next step. We'll do it with co-opera-tion.

Professor Dr. Aung Tun Thet: It's the last one. We must haveProfessor Dr. Aung Tun Thet: It's the last one. We must haveProfessor Dr. Aung Tun Thet: It's the last one. We must haveProfessor Dr. Aung Tun Thet: It's the last one. We must haveProfessor Dr. Aung Tun Thet: It's the last one. We must have

hopes and dreams for our future. Could you please tell me tohopes and dreams for our future. Could you please tell me tohopes and dreams for our future. Could you please tell me tohopes and dreams for our future. Could you please tell me tohopes and dreams for our future. Could you please tell me to

what extent you have ideas for your future?what extent you have ideas for your future?what extent you have ideas for your future?what extent you have ideas for your future?what extent you have ideas for your future?

Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe: Amara River Cruise has two ships and weare now giving service in the Ayeyarwady River. But the YangonRiver will be the next and if public transportation develops inthe Chindwin River, which is my dream and my great interest,we are willing to go there first and make investments. In thesimilar way, if we are allowed to say further about how we canoffer service in rivers like the Thanlwin and the Mekong, we,the cruise runners, have an idea and a desire to give servicewith sailing boats in the southern seas of Myanma like thesailing boats you saw in Indonesia as you said earlier.

Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe: We're now studying the market of the ship,Royal Irrawaddy. If the market needs we expect to run dailyriver cruise in the Yangon River like those of the Chao PhyaRiver in Thailand. As the time we've run the business is notvery long, only after studying everything will we proceed tobuild more ships according to the market requirement.



Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin: As you know there are altogether fourmajor rivers. River cruises are overlapping in Myanmar'sAyeyarwady River. In fact there are many places where rivercruises are required. We can't operate it all by ourselves either.Successful local entrepreneurs haven't reached this businessonly because they still don't realize it. And river cruise can't berun on the spot. Only those in the tourism field and those in theservice field can establish it depending on experience. If entre-preneurs want to extend their business into this field, we areready to help them by sharing our experience. Presently theplace of the worst weakness is Mrauk-U. The ships plying be-tween Sittwe and Mrauk-U along the Kispanady River are low.They are even lower than the local ones. It's not very conve-nient. They can hold only three passengers. And they are verydangerous too. Inspection is also necessary. Enough life jacketsmust be available. They must have contact phone numbers forrescue in emergency cases like cyclones. But they have manyweaknesses. It is possible to build safe and reliable ships ofhigh standard in that part of the country. Then another well-known part is Kawthoung. Around the Sellore islands near Myeikare Bushby Islands. Boats are also required there. Another riveris Thanlwin waterway. There is a lot of demand in Hpa-an andMawlamyine. The Thanlwin cruise between Hpa-an andMawlamyine is very beautiful. It's an unusual thing as only veryfew foreigners have been there. River cruises should be ex-panded with a required standard. Then ships of shallow draughtshould be built in Chindwin River as Daw Kalyar Moe saidearlier.

Professor Dr. Aung Tun Thet: At last the talk means to en-Professor Dr. Aung Tun Thet: At last the talk means to en-Professor Dr. Aung Tun Thet: At last the talk means to en-Professor Dr. Aung Tun Thet: At last the talk means to en-Professor Dr. Aung Tun Thet: At last the talk means to en-

courage B2B. While we are changing our layout, I noticed incourage B2B. While we are changing our layout, I noticed incourage B2B. While we are changing our layout, I noticed incourage B2B. While we are changing our layout, I noticed incourage B2B. While we are changing our layout, I noticed in

your discussions connections between a car and a ship andyour discussions connections between a car and a ship andyour discussions connections between a car and a ship andyour discussions connections between a car and a ship andyour discussions connections between a car and a ship and

between a ship and a helicopter. Could you please tell mebetween a ship and a helicopter. Could you please tell mebetween a ship and a helicopter. Could you please tell mebetween a ship and a helicopter. Could you please tell mebetween a ship and a helicopter. Could you please tell me

about such performances as B2B?about such performances as B2B?about such performances as B2B?about such performances as B2B?about such performances as B2B?

Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe:Daw Kalayar Moe: We are not the only one in our operations.All are inter-related. We have our tour agency. We use eveningservice like Daw Ce Ce Htwe's. We also like it. And we encour-age many of such agencies to come out. These are really theneeds of Myanmar. In the same way, we and Irrawaddy arecolleagues. If they hire us due to their need, we get job and wehave to rely upon each other when there are things to discussregarding the business. We have interest when they expandtheir business. For example, the choice of clients is vital for us.Although we have these businesses and hotels , if the guest hasthe name of the hotel he wants to stay in, the name of the boathe wants to take and the name of service he wants to get, weare not reluctant to offer service. We are working for that too.As we are working in the scope of tourism instead of workingfor our own ship or own hotel, we must go on only in this way.In the same way, such businesses that are related to this busi-ness as banking, insurance and health care will gain strengthwhen the government gives support. Private sector seeks andgives jobs to near-by ones. The extent private sector can doand what the government can do are incomparably different.The more effort the government put in it, the more the countrywill benefit. As we are tourism, we hear all news. When we

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ACUMEN ⏐ 55

hear it, we want to share it. We want our country to develop ina positive way. Together with this flow of development, as thenative businesspersons of the country, we ourselves want todevelop too, creating jobs and avoiding the loss of our ownbusiness as Daw Tint Tint Lwin discussed earlier.

Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe:Daw Ce Ce Htwe: As we run short cruises, we have to givelunch on board at places like Twante. In this respect, we makeall connections with restaurants. And we also make connec-tions with such services as decoration, model agency and en-tertainment. In addition, hotels make connections with us fortheir guests. We also do it.

Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin:Daw Tint Tint Lwin: I think, presently, experiencedbusinesspersons who are caught in this circle like Daw KalayarMoe and Daw Ce Ce Htwe, will need to share their experiencewith other businesspersons. We want to share it with thosefinancially strong businesspersons through B2B. Businesspersonswho have skills but no connections can make contact with B2Band contact us at any time to get our experience. As a youngperson doing business with foreign contacts, I'm ready to sharemy experience for the emergence of native entrepreneurs, forpenetrating international market and for abiding by interna-tional laws. So outsiders can rely on B2B magazine. By receiv-ing the assistance of B2B, I'm also ready to share my experi-ence through B2B.

Acumen Magazine would like to express its special thanks to Professor Dr. Aung Tun Thet for leadingAcumen Magazine would like to express its special thanks to Professor Dr. Aung Tun Thet for leadingAcumen Magazine would like to express its special thanks to Professor Dr. Aung Tun Thet for leadingAcumen Magazine would like to express its special thanks to Professor Dr. Aung Tun Thet for leadingAcumen Magazine would like to express its special thanks to Professor Dr. Aung Tun Thet for leadingthe discussion and to Daw Kalayar Moe, Daw Ce Ce Htwe and Daw Tint Tint Lwin for participating inthe discussion and to Daw Kalayar Moe, Daw Ce Ce Htwe and Daw Tint Tint Lwin for participating inthe discussion and to Daw Kalayar Moe, Daw Ce Ce Htwe and Daw Tint Tint Lwin for participating inthe discussion and to Daw Kalayar Moe, Daw Ce Ce Htwe and Daw Tint Tint Lwin for participating inthe discussion and to Daw Kalayar Moe, Daw Ce Ce Htwe and Daw Tint Tint Lwin for participating in

the discussion.the discussion.the discussion.the discussion.the discussion.

Professor Dr. Aung Tun Thet: Thank you, Daw Kalayar Moe,Professor Dr. Aung Tun Thet: Thank you, Daw Kalayar Moe,Professor Dr. Aung Tun Thet: Thank you, Daw Kalayar Moe,Professor Dr. Aung Tun Thet: Thank you, Daw Kalayar Moe,Professor Dr. Aung Tun Thet: Thank you, Daw Kalayar Moe,

Daw Ce Ce Htwe and Daw Tint Tint Lwin for participating inDaw Ce Ce Htwe and Daw Tint Tint Lwin for participating inDaw Ce Ce Htwe and Daw Tint Tint Lwin for participating inDaw Ce Ce Htwe and Daw Tint Tint Lwin for participating inDaw Ce Ce Htwe and Daw Tint Tint Lwin for participating in

this talk by taking time. In fact, if we think on the whole,this talk by taking time. In fact, if we think on the whole,this talk by taking time. In fact, if we think on the whole,this talk by taking time. In fact, if we think on the whole,this talk by taking time. In fact, if we think on the whole,

there's hope in our country. If we think about the develop-there's hope in our country. If we think about the develop-there's hope in our country. If we think about the develop-there's hope in our country. If we think about the develop-there's hope in our country. If we think about the develop-

ment of our country, some people talk about energy sectorment of our country, some people talk about energy sectorment of our country, some people talk about energy sectorment of our country, some people talk about energy sectorment of our country, some people talk about energy sector

and some talk about oil sector. On the other side, what weand some talk about oil sector. On the other side, what weand some talk about oil sector. On the other side, what weand some talk about oil sector. On the other side, what weand some talk about oil sector. On the other side, what we

understand is 'tourism' which is in the service sector. As I'veunderstand is 'tourism' which is in the service sector. As I'veunderstand is 'tourism' which is in the service sector. As I'veunderstand is 'tourism' which is in the service sector. As I'veunderstand is 'tourism' which is in the service sector. As I've

said again and again, if we think about tourism which is un-said again and again, if we think about tourism which is un-said again and again, if we think about tourism which is un-said again and again, if we think about tourism which is un-said again and again, if we think about tourism which is un-

usual in Myanmar, what is attractive is 3S, Sea, Sand and Sun.usual in Myanmar, what is attractive is 3S, Sea, Sand and Sun.usual in Myanmar, what is attractive is 3S, Sea, Sand and Sun.usual in Myanmar, what is attractive is 3S, Sea, Sand and Sun.usual in Myanmar, what is attractive is 3S, Sea, Sand and Sun.

People from the west come to the sea, to the sand and to sunPeople from the west come to the sea, to the sand and to sunPeople from the west come to the sea, to the sand and to sunPeople from the west come to the sea, to the sand and to sunPeople from the west come to the sea, to the sand and to sun

or sunbathe. What is unusual in our country is that we haveor sunbathe. What is unusual in our country is that we haveor sunbathe. What is unusual in our country is that we haveor sunbathe. What is unusual in our country is that we haveor sunbathe. What is unusual in our country is that we have

snow which south-east Asia lacks. Go to Myitkyina and you'llsnow which south-east Asia lacks. Go to Myitkyina and you'llsnow which south-east Asia lacks. Go to Myitkyina and you'llsnow which south-east Asia lacks. Go to Myitkyina and you'llsnow which south-east Asia lacks. Go to Myitkyina and you'll

find snow there. Opportunities are the most in tourism. In allfind snow there. Opportunities are the most in tourism. In allfind snow there. Opportunities are the most in tourism. In allfind snow there. Opportunities are the most in tourism. In allfind snow there. Opportunities are the most in tourism. In all

the discussions of participants, there is one thing I'm satisfiedthe discussions of participants, there is one thing I'm satisfiedthe discussions of participants, there is one thing I'm satisfiedthe discussions of participants, there is one thing I'm satisfiedthe discussions of participants, there is one thing I'm satisfied

with. The industry of tourism needs to be large. Only when itwith. The industry of tourism needs to be large. Only when itwith. The industry of tourism needs to be large. Only when itwith. The industry of tourism needs to be large. Only when itwith. The industry of tourism needs to be large. Only when it

is large, will all of them rise. Sometimes, it happens that com-is large, will all of them rise. Sometimes, it happens that com-is large, will all of them rise. Sometimes, it happens that com-is large, will all of them rise. Sometimes, it happens that com-is large, will all of them rise. Sometimes, it happens that com-

panies see only their own benefit. People tend to think topanies see only their own benefit. People tend to think topanies see only their own benefit. People tend to think topanies see only their own benefit. People tend to think topanies see only their own benefit. People tend to think to

divide a pie into many slices. What I want it to be is to be adivide a pie into many slices. What I want it to be is to be adivide a pie into many slices. What I want it to be is to be adivide a pie into many slices. What I want it to be is to be adivide a pie into many slices. What I want it to be is to be a

big pie. The bigger the pie, the bigger the slice you get. Thenbig pie. The bigger the pie, the bigger the slice you get. Thenbig pie. The bigger the pie, the bigger the slice you get. Thenbig pie. The bigger the pie, the bigger the slice you get. Thenbig pie. The bigger the pie, the bigger the slice you get. Then

there's another thing I noticed last. I didn't think of it earlier.there's another thing I noticed last. I didn't think of it earlier.there's another thing I noticed last. I didn't think of it earlier.there's another thing I noticed last. I didn't think of it earlier.there's another thing I noticed last. I didn't think of it earlier.

What was discussed first is about cruise. Then B2B connec-What was discussed first is about cruise. Then B2B connec-What was discussed first is about cruise. Then B2B connec-What was discussed first is about cruise. Then B2B connec-What was discussed first is about cruise. Then B2B connec-

tion became extensive. I think it involves banking, insurance,tion became extensive. I think it involves banking, insurance,tion became extensive. I think it involves banking, insurance,tion became extensive. I think it involves banking, insurance,tion became extensive. I think it involves banking, insurance,

airlines, health, education and capacity building. May I con-airlines, health, education and capacity building. May I con-airlines, health, education and capacity building. May I con-airlines, health, education and capacity building. May I con-airlines, health, education and capacity building. May I con-

clude thanking all three of you as you could highlight B2Bclude thanking all three of you as you could highlight B2Bclude thanking all three of you as you could highlight B2Bclude thanking all three of you as you could highlight B2Bclude thanking all three of you as you could highlight B2B

although we are talking about 'River Cruise' in this discus-although we are talking about 'River Cruise' in this discus-although we are talking about 'River Cruise' in this discus-although we are talking about 'River Cruise' in this discus-although we are talking about 'River Cruise' in this discus-

sion.sion.sion.sion.sion. A


adv.pmd 10/10/2013, 8:17 PM11

adv.pmd 10/10/2013, 8:18 PM11


Opinion


Myanmar is in a critical stage of transitional period towards democratizationprocess after five decades ruled of military dictatorship. With firm promisesfor peaceful transformation, President Thein Sein leads this current miracle

reform at home since he took power in March 2011. President Thein Sein hadbeen cheered up by nationwide public for his decision to halt Myit-Sone damproject in Kachin State as a major step to win people's hearts. The hydro-powerproject becomes a center for political topic on the road to 2015 elections, and thegrowing of anti-Chinese sentiments will be a trigger for another political trap thatwill invite a new military coup.

Now China See Myanmar-NathanMg.pmd 10/10/2013, 7:42 PM58

ACUMEN ⏐ 59

After two and a half years, MyanmarSpring, which President himself recognizedthe term as a change in Myanmar, sent amessage to the outside world that thechange is taking off. Meeting with NobelPeace Laureate at his presidential palacein Naypyidaw in August 2011 confirmedto the international community that politicalopening has been started. The internationalcommunity, especially the United Statesand the European Union, lifted somesanctions against Myanmar as rewards, butclaimed that they will respond actions byactions to the current quasi-civilian regime.Myanmar is now a hot spot for foreigninvestors and seems as the last frontier ofthe market in the Southeast Asia, and thetransition believes to be a gradual move.Now China Power Investment -CPIexpresses that they will not be giving upto build a mega dam in Kachin State andwaiting the upcoming general electionresult with a hope to restart the billiondollar hydro power project that Thein Seinsuspended for five years.

Wang Qiyue, director of the CPIunfolds a message at an energy investmentsummit in September that negotiationprocess with Naypyidaw is taking place atpresent, the Wall Street Journal reported."The next incoming government willhopefully do what is best," Wang Qiyuesays. However, the CPI hopes to resumethe project that postponed for almost twoyears by offering to renegotiate the contractwith Myanmar government over thepercentage of the stake. The copper minein Monywa becomes a case study.

Myanmar witnesses a series ofsectarian violence across the nation thaterupted in western Myanmar, RakhineState where Chinese oil and gas dualpipeline constructed across the Myanmarto Yunan. The Shwe gas pipeline finishedits construction during the sectarianviolence for one and half years and startedto run the gas to China last August asplanned. There were no major protest

against the pipeline, andactivists were arrested. Afew Myanmar educatedunderstand that thegovernment had been usedthe anti-Muslim movementsto cover up an outrage ofpublic over pipeline projectin Rakhine State. Divertingpublic attention from antiChinese projects inMyanmar into the sectarianviolence against anti-Muslim activities, publicfailed to question over themega projects that madeagreements under Snr. Gen.Than Shwe with China.

Now Myit-Sone damproject is an unfinishedgame in Myanmar, andCPI's persistence makes public fear againstthe project. Residents in Kachin State notedrenewed activity around the proposedMyit-Sone Dam even though the project isofficially suspended by the President. CPIsays the Chinese would invest at least US$1 billion more for the project if it isrestarted. The original US$ 3.6 billion megaproject causes financial suffering for CPI

during the suspension, and the company

eager to renegotiate the contract terms withgovernment.

The question is whether the damproject anytime soon restarted after the

2015 elections when the new civilianadministration took office. The currentadministration will hold their publicpromise until they reached a truce withethnic troops especially KachinIndependent Organization - KIO. Resourcessharing will be the hottest topic in theprocess of peace talks for power sharingwithin the union. Another mega hydropower projects with China on the SalweenRiver to produce huge amounts of powerelectricity is queuing in the line to buildafter pipeline project and Myit-Sone project

ACUMEN ⏐ 59

Nathan Maung is a prominent writer and journalist who was born in Myanmar. He published two historical and geopoliticalbooks on Myanmar in 2012 and 2013 in Yangon. After he left from North Carolina, he is currently working as executive

producer of Kamayut Media - the first private independent online television of Myanmar.

were successfully completed, and the publicaware that there are many to come.

Myanmar is facing a danger of sec-tarian violence that Physicians for HumanRights report warned a catastrophic levelof violence if "these conditions go unad-dressed." The report said there was evi-dence showing the current regime's rolein violence against Muslims in Myanmar.It is a significant fact that government forceswere standby near when violent mobswaged wars and attacks in several townswhere Muslims were targeted, leavingabout 250 deaths.

Major projects on natural resourceswith China designed by former militaryregime. The current players inherited oflegacy and run the show in their own stagefor Myanmar Spring. Toward 2015elections and political slogans will not beundermined the problems ahead. Ifsomething goes wrong, Myanmar's fragiletransition will end up with another militarycoup to restart the show again. It is a testfor Myanmar in two years. Myanmar isseen by everyone in the world for its beautyand dark-side. Which part will win? A

Now China See Myanmar-NathanMg.pmd 10/10/2013, 7:42 PM59


Opinion


How Free Can Myanmar Be.pmd 10/10/2013, 7:04 PM60

ACUMEN ⏐ 61

It was Napoleon Bonaparte, the outcast cor-sican corporal, that later became the em-peror of 18th century France, who said ‘‘aleader is a dealer in hope" and his successvindicates his words. Believing his visionthe people enthusiastically followed him andhe was raised to the crest of power.

Currently in Myanmar, on it's politicalstage there seem to be players followingBonaparte's philosophy. A lot of Myanmarleaders are scattering hope right and left asif they are scattering popcorn and timselsat a wedding, promising better days andnights and better lives for one and all. Howmuch of their ‘‘I have a great dream" bom-bast will become words of honour and howmuch will fall flat no one knows. To or notto believe them is the dilemma most is fac-ing at the moment. If past performance issupposed to be the gauge of one's ability itcertainly is hard to guess who has the qual-ity to make the Myanmar dream come true.Because almost all the current leaders, eventhose that are labeled as opposition are stilltethered to the previous regimes colours.There are very few who can declare theyhave no stains on them, their reputation isclean.

And as for being pure, for people andcountry, the conduct of the one and only,extraordinary and exceptional Daw AungSan Suu Kyi, has been casting doubt in theminds of many for quite some time. Consid-ered a political novice or rather a green-horn at the beginning of the democracymovement over two decades ago, she seemsto have emerged as a maestro who canmake the whole world dance to her tune. Itcan't be denied that she has been the key-stone in opening the doors of Myanmar.Her endorsement of the 2010 elected con-gregation, president as well as the govern-ment and the whole lot that makes up theparliament, was what got green lights flash-ing in the east and west, or rather it may berightful more to say, in the four corners ofearth. Myanmar came to get visitors fromrarely heard of places and the flow of visi-tors in and out, seemed to mean that beento Myanmar was the fad of the day.

Let's say Daw Aung San Suu Kyi has

been the best sales promoter of Myanmar.She has been able to place Myanmar withall its flaws and defects, blemish and weak-ness in the top lot. And in doing so and indealing with all those controversial elementsthat make up the present structure of My-anmar, she seems to show that in the yearsin detention she honed the political talentshe inherited from her father. And becauseshe has become so can the people assumenow, that at least, they have gained a full-fledge proponent they can completely de-pend on?

There are many laws of life that can'tbe denied and one is that man, survived byadapting to his environment. This is notdragging Darwin and his evolution theoryinto this discussion but it will be a fallacy tosay that his survival of the fittest logic whichis rather like a catch all phrase in everymatter is not in accord with political situa-tions.

To get along with one's surroundingsor environment mean need to be able to dothe appropriate feature and Daw Aung SanSuu Kyi has been for the past years doingso, in and out of the country. And often heradaptation has seemed to be so much over-blown it has made frowns grow on the fore-head of political analysts. Seeing her danc-ing with those whom the people considerthe devil and often hearing her sing theirtune has made many doubt her sincerity.

But, still, there are those who see heractions as political maneuvers that Myan-mar's drastic condition necessitates andpoints out that as she seems to be, in somesituations, straddling the fence, so are thoseof the regime. And no accusation could betruer than that.

The most reverberant sound that hasbeen rising to a crescendo in Myanmarnowadays is the bellow of the people, withthe people, to the people' by various band-wagon riders, both of the administration andopponent. Offering the people a mixture ofEI dorado and Shangrila to mesmerize themto vote for them in the coming election, theirreal motive is to get the people by hook orby crook. As the old song ‘Promises, Prom-ises.' it is certainly promises galore. Enoughto choke you!

Taking all these matters in mind it willbe rightful to conclude that all the king'smen, the present administration, dissidentand army, are doing their best to be seenas a helping hand in reconstructing thehumpity-dumpity, here, Myanmar, that hadtaken a resounding fall. And the people'smomentous duty is to be able to foresee thetrue saviour.

At the top there are the four majorcontenders, i.e, the opposition leader DawAung San Suu Kyi, the president U TheinSein, the house speaker Thura Shwe Mannand the army chief, senior general Min Aung

ACUMEN ⏐ 61

Daw Aung San Suu Kyi delivers a speech at the National Leaguefor Democracy (NLD) headquarters in Yangon on27 September 2013 / Hein Zaw

Daw Aung San Suu Kyi delivers a speech at the National Leaguefor Democracy (NLD) headquarters in Yangon on27 September 2013 / Hein Zaw



Hlaing, standing there like com-rades, but all assume that it is justa facade to pacify the country'svarious dissidents. And observingthem one can't ignore a glaringfact. That is of those four, threeare those who enjoyed and stillare enjoying the prosperity andpotentiality of the arms force.

Going down to the secondor third or fourth rank of leader-ship, the situation seldom differs.It can be said that the 25 percentarmy ratio declared in the consti-tution is of little consequence outin the field, where in reality thearmy ratio of dominance is 75percent and in some places moreso. In short it can be said that theruling class of Myanmar mostlycomprises former and ex and pre-vious and present servicemen andit can't be denied that whateverdifferences those may have, trueto the motto, ‘birds of a featherstick together,' when required,they are certain to discard theirinternal friction and stand unitedagainst those they consider astheir opponent. If as before, if thepeople end up as their opponent,just accept that god has forsakenthem.

It was Nehru, the first primeminister of independent Indiawho said that ‘‘you can judge thegrowth of a nation by finding outwhich class of that nation, in aparticular period of history, is heldin honour and reputed more thanthe other."

And there are also words that seemrelevant to the above quote. "The first pan-acea for a mismanaged nation is inflationof the currency; the second is war. Bothbring a temporary prosperity; both bring apermanent ruin. But both are the refuge ofpolitical and economic opportunists," saidthe great American author Ernest Heming-way.

Any person who seriously studies

Myanmar, the country at this phrase, is cer-tain to see whom were those that had beenhonoured in its previous and present pre-dicament and who were blessed with theopportunity to milk the mismanaged nation.So on whom should the people stack theirhope?

On whom should the people stack theirhopes, especially when all those that seemto have the means to pave the people's wayto paradise are those who had fleeced the

country's treasures?Some like to feel that

there are possibilities of a bet-ter tomorrow in Daw Aung SanSuu Kyi strategy but others feelthat she hasn't the guts to dis-rupt the present tranquility ofpower sharing gained by her en-dorsement and acceptance ofthe present government withwarts and all.

But would the 75 per-cent veteran stand stock-still andlet her carry on movement thatis certain to have percussion ontheir previous activities. Andmore so would Myanmar's greatneighbours, China, India, Bang-ladesh and Thailand sit backand let a hugh economic oppor-

tunity slip out of their hands.Hope is what keeps the

world turning round. How itturns and for who it turns andwho can counter act its motionfor the better of his kind is stilla hang-up question. The peoplemay be preparing to cast theirlot, in the coming election, withthe candidate they prefer. Andthe way things are going theconstitution may be amended tomake Daw Aung San Suu Kyiparticipation valid. But in theafter math how much of thepeople's hope will be realized?How long and how democrati-cally free will the people be?That is the question that hauntsthe Myanmar of today.

It was also Napoleon Bonaparte whosaid, ‘‘Impossible is not a word in my dic-tionary." Meaning any and everything is pos-sible. And it was also his way, when choos-ing his generals, to give preference to thosethat are lucky. Try as much as the Myan-mar may to get a good democratic leader,may be, due to the current situation goingon, they may have to fall back to their Bud-dhist philosophy and leave the matter tofate or luck. A

‘‘Impossible is not a wordin my dictionary.’’ Meaningany and everything is possible.And it was also his way, whenchoosing his generals, to givepreference to those that arelucky.

Napoleon

Opinion


adv.pmd 10/10/2013, 8:25 PM11


Opinion

This article will address the issues ofTraditional Management and the skills thatare involved in Change Management.

Myanmar is now facing enormouschallenges with the country opening up tothe outside world economy. This will im-pact the way Myanmar companies do busi-ness in the future, and in particu-lar raise questions about leader-ship and management. It will benecessary to revalue currentmanagement styles and see newmanagement and leadershipemerge. Organizational transfor-mation will be necessary to en-sure that Myanmar companies

can compete both on domestic markets andinternationally.

The traditional principles ofmanagement can be categorized into thefour major functions of Planning,Organizing, Leading and Controlling (TheP.O.L.C framework).

All of these functions require solidmanagement and leadership skills, both onstrategic and operational level. Managementrelationship with Leadership is interestingin as much as it involves some fundamentaldifferences. Some of those differences canbe summarized by directly comparing the

1. Vision & Mission 1. Organization Design 1. Leadership 1. Systems/Processes

2. Strategizing 2. Culture 2. Decision Making 2. Human Resources

3. Goals & Objectives 3. Social Networks 3. Communications

4. Groups/Teams

5. Motivation

PlanningPlanningPlanningPlanningPlanning OrganizingOrganizingOrganizingOrganizingOrganizing LeadingLeadingLeadingLeadingLeading ControllingControllingControllingControllingControlling


Managing Change-Mikael.pmd 10/13/2013, 2:02 PM64

ACUMEN ⏐ 65

roles of both roles- Managers administer, leaders

innovate- Managers ask how and when,

leaders ask what and why- Managers focus on systems, leaders

focus on people- Managers do things right, leaders

do the right thingsWhatever these differences are, an

organization needs both leaders andmanagers to achieve an effective runningof the business. But for most organizationsits usually about managing and leading anexisting business and try optimize theresults of doing business, whatever way itis measured. Financial Rations, ShareholderValue, Market Value OrganizationalPerformance Measures etc.

But what happens when an organizationBut what happens when an organizationBut what happens when an organizationBut what happens when an organizationBut what happens when an organization

need to Change and Innovate?need to Change and Innovate?need to Change and Innovate?need to Change and Innovate?need to Change and Innovate?This article will look into the need

for adapting the traditional managementand leadership functions and skills to dealwith changes. What we can refer to asChange Management.

Why is change important? If it weren'tWhy is change important? If it weren'tWhy is change important? If it weren'tWhy is change important? If it weren'tWhy is change important? If it weren't

for changes a manager's job would befor changes a manager's job would befor changes a manager's job would befor changes a manager's job would befor changes a manager's job would be

relatively easy.relatively easy.relatively easy.relatively easy.relatively easy. Planning, Organizing,Planning, Organizing,Planning, Organizing,Planning, Organizing,Planning, Organizing,

Leading and Controlling (P.O.L.C) wouldLeading and Controlling (P.O.L.C) wouldLeading and Controlling (P.O.L.C) wouldLeading and Controlling (P.O.L.C) wouldLeading and Controlling (P.O.L.C) would

be easier because tomorrow would be nobe easier because tomorrow would be nobe easier because tomorrow would be nobe easier because tomorrow would be nobe easier because tomorrow would be no

different than today.different than today.different than today.different than today.different than today. So why doSo why doSo why doSo why doSo why do

Organizations need to change?Organizations need to change?Organizations need to change?Organizations need to change?Organizations need to change?Organizations need to change and

adapt both for Internal and Externalreasons. We can evaluate these changesby using the well-known SWOT analysis,which give us a tool to look at the internalfactors (Strength, Weakness) and theexternal factors (Opportunities, Threats).But there are a wide range of toolsavailable to management to access theorganization's current competitive position.Some of these are PEST (Political,Economic, Social Demographic, andTechnology), EFAS (External FactorAnalysis Summary), IFAS (Internal FactorsAnalysis Summary), Value Chain, BalancedScorecard, Strategic Canvas, Kaizen, 6

Sigma etc. All of these indicators will helpmanagement to evaluate the currentcompetitive position of the company. So ifthose indicators show that the company isnot in an optimal position, it is maybe timefor changes and innovation. This is wherethe traditional management skillsets willbe challenged. Change Managementrequires a whole new set of skills to guidethe organization through uncertainty andoften fear. Good leadership and goodimplementation management skills are amust in order to succeed.

The first thing is for management toaccept the role they play in organizationalchange. They act like a kind of catalyst forthe change. Like a change agent.

After all changes represents ambiguityAfter all changes represents ambiguityAfter all changes represents ambiguityAfter all changes represents ambiguityAfter all changes represents ambiguity

and uncertainty and can threaten theand uncertainty and can threaten theand uncertainty and can threaten theand uncertainty and can threaten theand uncertainty and can threaten the

status quo. So how can managersstatus quo. So how can managersstatus quo. So how can managersstatus quo. So how can managersstatus quo. So how can managers

effectively overcome this resistance toeffectively overcome this resistance toeffectively overcome this resistance toeffectively overcome this resistance toeffectively overcome this resistance to

changes?changes?changes?changes?changes?Here are some suggestions:

1.1.1.1.1. Carefully assess the climate for changeCarefully assess the climate for changeCarefully assess the climate for changeCarefully assess the climate for changeCarefully assess the climate for changeIs the organization ready for changes?

Changes can be related to both internalChanges can be related to both internalChanges can be related to both internalChanges can be related to both internalChanges can be related to both internal

and external factors. It can involveand external factors. It can involveand external factors. It can involveand external factors. It can involveand external factors. It can involve

Structure, Technology, Organization,Structure, Technology, Organization,Structure, Technology, Organization,Structure, Technology, Organization,Structure, Technology, Organization,

Products, R&D, Marketing and Sales etc.Products, R&D, Marketing and Sales etc.Products, R&D, Marketing and Sales etc.Products, R&D, Marketing and Sales etc.Products, R&D, Marketing and Sales etc.

But the common denominator is how doesBut the common denominator is how doesBut the common denominator is how doesBut the common denominator is how doesBut the common denominator is how does

management effectively deal withmanagement effectively deal withmanagement effectively deal withmanagement effectively deal withmanagement effectively deal with

changes?changes?changes?changes?changes?Changes usually involved increased

stress level and uncertainty on theorganization. People often tend to react tochanges by first reject, being upset, angryuntil it is accepted and then corporation.

It is therefore important thatmanagement have a strong change processin place so it can effectively deal withresistance and stress and providestimulation for changes and innovation.

So how can managers develop theirSo how can managers develop theirSo how can managers develop theirSo how can managers develop theirSo how can managers develop their

Change Management Skills?Change Management Skills?Change Management Skills?Change Management Skills?Change Management Skills?

Management needs to ask several questionsand the more affirmative answers they getthe more likely it is that change effortswill succeed.

Some questions will involve whetherthe driver of the changes is powerfulenough to effectively deal with resistance.Other questions relate to the seniormanagement's commitment to the change,and their ability to convey the need forchange and share it with others in theorganization. Some questions will addressthe vision and the future of the organizationand do management have clear SMARTobjectives in place to evaluate the changeeffort and reward systems. Themanagement also needs to be clear aboutif a specific change effort is consistent withother changes going on in the organization.And very importantly is the question about

ACUMEN ⏐ 65



risk? Are employees being rewarded fortaking risks, being innovative and lookingfor new and better solutions? Doescommunication flow both down and up inthe organization, and do employees happyand trust the management? These are justsome of the many questions managementneed to ask to effectively manage thechange process.

2.2.2.2.2. There are several ways managementThere are several ways managementThere are several ways managementThere are several ways managementThere are several ways management

can approach and manage thecan approach and manage thecan approach and manage thecan approach and manage thecan approach and manage the

resistance to change. Here are sixresistance to change. Here are sixresistance to change. Here are sixresistance to change. Here are sixresistance to change. Here are six

examples of strategies for dealing withexamples of strategies for dealing withexamples of strategies for dealing withexamples of strategies for dealing withexamples of strategies for dealing with

resistance to change:resistance to change:resistance to change:resistance to change:resistance to change:- Education &Communication. This

can clear up misunderstanding- Participation which can increase

involvement and acceptance- Facilitation and support which is

useful when there is a high level ofanxiety and fear

- Negotiation which is useful whenmanagement need to "buy"commitment

- Manipulation can be used as aninexpensive and easy way to getsupport

- Coercion as a strategy when apowerful group's support is needed.

3.3.3.3.3. The final stage of Change ManagementThe final stage of Change ManagementThe final stage of Change ManagementThe final stage of Change ManagementThe final stage of Change Management

involves the importance ofinvolves the importance ofinvolves the importance ofinvolves the importance ofinvolves the importance of

communication with the employeescommunication with the employeescommunication with the employeescommunication with the employeescommunication with the employees

regarding what support managementregarding what support managementregarding what support managementregarding what support managementregarding what support management

is able to provide. This must take placeis able to provide. This must take placeis able to provide. This must take placeis able to provide. This must take placeis able to provide. This must take place

both during the time the change isboth during the time the change isboth during the time the change isboth during the time the change isboth during the time the change is

being implemented and after thebeing implemented and after thebeing implemented and after thebeing implemented and after thebeing implemented and after the

change is completed. It is importantchange is completed. It is importantchange is completed. It is importantchange is completed. It is importantchange is completed. It is important

that the organization takes learningthat the organization takes learningthat the organization takes learningthat the organization takes learningthat the organization takes learning

from previous changes to avoidfrom previous changes to avoidfrom previous changes to avoidfrom previous changes to avoidfrom previous changes to avoid

making same mistakes.making same mistakes.making same mistakes.making same mistakes.making same mistakes. A close studyA close studyA close studyA close studyA close study

of other organizations Best Practiceof other organizations Best Practiceof other organizations Best Practiceof other organizations Best Practiceof other organizations Best Practice

is also valuableis also valuableis also valuableis also valuableis also valuable

So How Does Organizational ChangeSo How Does Organizational ChangeSo How Does Organizational ChangeSo How Does Organizational ChangeSo How Does Organizational Change

Happen?Happen?Happen?Happen?Happen?We can look at this question by using

two kinds of metaphors. There is the socalled "calm waters" metaphor which kindof look at the organization as a large ship

sailing in calm waters. The management(captain and crew) know exactly wherethey are going because they done it somany times before. Changes are onlyneeded when a sudden storm or briefdistraction occur. The other scenario isreferred to as the "white-water rapids"metaphor where the organization is like asmall raft running down a wild raging riverwith uninterrupted white-water rapids. Onboard are people who might never haveworked together before and perhaps areunfamiliar with the river (businessenvironment).

an indebt exploration of both the accountsof organizational success that have beenprovided by noted practitioners, and theaccounts that have been provided byacademics utilizing a range of empiricaland theoretical approaches to research.

There are numerous accounts ofleaders and managers who havesuccessfully transformed their business andperfected the fine art of Transformationaland Change Management. Perhaps one ofthe most successful is Jack Welch theformer CEO of General Electric, who overa period of 20 years increased GE's market

So does every manager face a world ofSo does every manager face a world ofSo does every manager face a world ofSo does every manager face a world ofSo does every manager face a world of

constant and chaotic change?constant and chaotic change?constant and chaotic change?constant and chaotic change?constant and chaotic change?No, not every manager faces such a

world. However, the number who doesn'tis getting smaller. The stability andpredictability of the calm waters metaphordon't really exist. This is very true for thenew business environment that Myanmaris now facing. So therefore the need forgood Change Management skills is soimportant now.

There will be challenges of personaland professional development that confrontthose who wish to increase theireffectiveness as business leaders.

What can managers and leaders do toWhat can managers and leaders do toWhat can managers and leaders do toWhat can managers and leaders do toWhat can managers and leaders do to

strengthen their Change Managementstrengthen their Change Managementstrengthen their Change Managementstrengthen their Change Managementstrengthen their Change Management

skills?skills?skills?skills?skills?Well first of all they can undertake

capitalization over 20 fold, from 13 billion$ to 200 billion $. It was through his visionand change management that he guidedGE though new times and took opportunityof a changing world. His 7-Point Programfor Management by Leadership can besummarized are very simple:

1. Develop a vision for thebusiness2. Change the culture toachieve

the vision3. Flatten the organization4. Eliminate bureaucracy5. Empower individuals6. Raise quality and efficiency7. Eliminate boundariesHere are some examples of his

messages to other leaders. These messagesare applicable for any industry and anymarket whether a developed westerncountry or emerging markets in Asia, like

Opinion


ACUMEN ⏐ 67

Myanmar.- Business is simple.- Don't make business overly

complicated.- Face reality; then act decisively.- Don't be afraid of change.- Change before you have to.- Fight bureaucracy.- Use the brains of your workers.- Discover who has the best ideas,

and put those ideas into practice.Jack Welch's transformation of GE is

a clear example of a leader creating a storyfor the future of the organization based on

leadership and organisational success.Although there are some academics whoquestion the claim that leadership is crucialto organisational outcomes, the majorityview certainly holds that it is effectiveleadership that constitutes one of the keycompetitive advantages for successfulorganisations.

Now let us turn to the many accountsthat have been provided by academicsutilizing a range of empirical andtheoretical approaches to research.

These are textbooks with a numeroustheories on how to handle ChangeManagement and create a winningorganization.

There are two books I like to introducein this article. One is the book Blue Oceanwritten by W. Chan Kim & ReneeMauborgne. The book talks about the waycompanies can create a competitiveadvantage by using the concept ofswimming (doing business) in Blue Oceans(create barriers for competitors) as opposedto Red Oceans (where there are a lot ofcompetition)

they studied had no or little relationshipto superior business performance.

In their opinion what does matter, itturned out, is having a strong grasp of thebusiness basics. Without exception,companies that outperformed their industrypeers excelled at what we call the fourprimary management practices-strategy,execution, culture, and structure. And theysupplemented their great skill in thoseareas with a mastery of any two out offour secondary management practices-talent, innovation, leadership, and mergersand partnerships.

So let us ask the question?So let us ask the question?So let us ask the question?So let us ask the question?So let us ask the question?‘‘Are Leaders Born? Or Are They

Made? Or Both’’Many think that ‘Leaders’ are simply

born with the DNA to lead. Many othersthink that "Leadership" can be learned andgrown with proper education andexperience.

Some others think that it is a combinationSome others think that it is a combinationSome others think that it is a combinationSome others think that it is a combinationSome others think that it is a combination

of the two that breeds the greatestof the two that breeds the greatestof the two that breeds the greatestof the two that breeds the greatestof the two that breeds the greatest

the elements of his own 'who I am' story.Welch loves to compete. He knows

what it's like to win and lose, and he likeswinning better.

When he became CEO he began toauthor a story about GE becoming awinner: he proposed that GE shouldbecome the most competitive company onthe planet.

Jack Welch is just one of many leaderswho have successfully transformed theirbusiness and even industries. Others haveincluded Carlos Gnosh of Nissan, SirRichard Branson, Michael Dell, Larry Pageand Sergey Brin the founders of Google,Lee Kuan Yew, the charismatic leader ofmodern Singapore.

All of these leaders and many moreare a testimony to the theory pointing outthe connections between effective

The other book is "What ReallyWorks" by byNitinNohria, William Joyce,and Bruce Roberson.

They carefully examined more than200 well-established management practicesas they were employed over a ten-yearperiod by 160 companies to try determiningwhich management practice work best. Theconclusion came as a bit of surprise. Mostof the management tools and techniques

Red Ocean versus Blue Ocean Strategy

Compete in existing market space. Create uncontested market space.

Beat the competition. Make the competition irrelevant.

Exploit existing demand. Create and capture new demand.

Make the value-cost trade-off. Break the value-cost trade-off.

Align the whole system of a firm's Align the whole system of a firm's activities in

activities with its strategic choice of pursuit of differentiationand low cost.

differentiation or low cost.

Red Ocean versusRed Ocean versusRed Ocean versusRed Ocean versusRed Ocean versus Blue Ocean StrategyBlue Ocean StrategyBlue Ocean StrategyBlue Ocean StrategyBlue Ocean Strategy

leaders... What do you think?leaders... What do you think?leaders... What do you think?leaders... What do you think?leaders... What do you think?Whatever the answer is we must

accept that the way we manage ourbusiness in the future in Myanmar, willchange simply due to the new challengeswe are facing, both internally andexternally. To be truly competitive in thenew business environment, Myanmarleaders and managers must adapt andmaster the art of Change Management. A


adv.pmd 10/10/2013, 8:26 PM11

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Culture


Culture-Buddha Images-Dr.TinMgKyi.pmd 10/10/2013, 7:32 PM70


Myanmar army at Ayutthaya went home by two routes. Onewent east towardsToungoo, They carry only light arms andloads. They were to make rapid march to reach Ava and meetChinese forces.

Another route to home was towards south of Ayuttaya andthen towards Dawae. They were slow in their march as theycarry heavy loads and weapons such as guns. They would takemonths on the way From Dawae, they would proceed by sea toYangon and then sailed up the Ayeyarwaddy river to Ava.

An officer in charge of a detachment was found strugglingwith a load put on beasts of burden. He was from Thin-baung-gyin village,(See map) north-west of Ava. He is still called byhis native villagers as ‘Thin-baung-gyin Bo'.

His soldiers were also equally laden with loads entrustedto each by a Myanmar general. Mostly they were carrying warbooty- like guns and arsenals. These they were to deliver at thecapital Ava. They also took Thai captives with them.

It was a real hardship on the way. There were many untoldstories. Both Myanmar soldiers and Thai captives, many were.leftbehind exhausted or with illness and the heavy loads werepiled on the road side. Some joined them later on. Some loadsso heavy and unable to carry on, the General decided to abandonthem at secret places. Few detachments were purposely leftbehind to settle new villages near the secret sites.

The Myanmar soldiers carefully marked the spot wherethey hid the treasures. But treacherous jungle covered all theposts and marks in no time with vines and trees and thecarnivores prowled the area making it a no-man's-land. Withtime, treasures were lost but not forgotten and their tales orrumors continued even now, added with myth, magic and make-ups.

Since then, rumors spread along the road about fabuloustreasures hidden at several places in the jungle all along theroad to Dawae.

In 1933, Thuriya magazine in Yangon published an articleabout a ‘Yodaya Thike' (Ayutthaya Tressures) by Myo Tha, from0-loke quarter, Dawae. It says the treasures were left behind bythe Myanmar army on its way back home via Dawae. It isreasonable that few 'Thike' really exist and there are secretsurveys made from Thai side. Few years ago, a sounding waseven made by a Thai Princess visiting Dawae.

Coming back by Dawae route, few lucky ones with robusthealth did reach their home within 3 or 4 months. Those affectedby malaria, fatigue and other illness reach Ava after 6 monthsor so.

A lucky one who came home was ‘Thin-baung-gyin Bo' orcaptain and his soldiers recruited from the villages around. Hisname was mentioned in a chronicle, the fourth volume of ' Thu-tho-dita Maha Y arzawin-daw-gyi.

On his way back he was to escort a group of Thai plus aload of trophy which his general entrusted him to deliver atAva. He also carried back three wooden standing Buddha statues

each about three cubits high. Thin-baung-gyin villagers saidthat he was a pious man, offering flowers to the Buddha imagesat every camp they rested for a night and always prayed to theLord that he would behave fairly towards his men and Thaicaptives he was taking along with him and that the Deva shouldhelp all of them to reach their home, Ava safely. And they did.

Arriving Ava, he delivered the Thais to the officersconcerned plus the war booty both he and his soldiers hadcarried all the way back. But the three Buddha images, hecarefully packed and carried all the way, he took them to hisvillage.

His village is far in the interior, now-a-day in Kant-balutownship. (See Map) Soon he and his men found themselveswarmly welcomed by his native villagers. They all rejoicedmore so because he had carried back three standing Buddhastatues to worship at the village.

Immediately they all carried them to the village monastery.The abbot received them humbly and put them on a high alter.

Years passed. Abbots of the village changed one afteranother. Thin-baung-gyin Bo passed away. But the Thai images

remained in the monastery.Since then for over 200 years, the three standing images

are here. Miraculously the three images escaped destructionfrom the Second World War. The villagers believed that theBuddha statues would protect them. When Japanese soldierscame, they did not give any trouble. So the statues were highlyrevered and respected by the villagers.

Again in a hard time under the rule of socialism, all peopleturned to black market for a survival. Many Buddha images ofwood, marble, and bronze and art objects disappeared fromeverywhere but these statues from this village escaped looting.

DiscoveryDiscoveryDiscoveryDiscoveryDiscoveryIt has been never observed by any scholar of history and

art before. So we can rather say their existence was unknowneven to the Myanmar scholars.

On 16 July 2013, U Win Maung, a scholar of traditionalarchitecture, and his team visited the village. All village



Culture

Hand gestures of the Standing Buddha Images in Thin-baung-gyin village

monasteries were the centre of social and cultural activities.The team went straight to the only monastery. Here to theirsurprise and joy, they discovered the three Buddha images.Each is about three cubits high, all in standing posture.

In spite of a sign of restoration once or twice like puttingon new gold leaves and glass mosaic, the last time being in thelast 90 years or so, the three images are found to retain originality.

The most prominent are decoration on the chest and abroad cover around the waist and buttock, a common Thaidecoration but a very unusual feature in Myanmar ‘standing’Buddha images.

The ‘Bo’ (captain) of this village could not have taken thethrones or pedestals on which the statue were standing; he hadto leave them behind as the images were most important forhim. The pedestals are now a simple block rather than theiroriginal truncated triangular shape.

Thai and Myanmar DifferenceThai and Myanmar DifferenceThai and Myanmar DifferenceThai and Myanmar DifferenceThai and Myanmar DifferenceRegarding the tapering crown, there are two types in

Myanmar tradition. 1- Makuda or Magite (Makut in Thai) and 2-Tharafu (Saraphu).

Makuda has a flat band around the forehead with recedingtiers with (5, 7 or 9) of Tamarind leaves as it goes up, toppedwith a small bulb known as ‘Baung'.

Tha-ra-phu has a bulbous base around the forehead withreceding bulbous ring as it goes up to end on a spire.

Myanmar Kings rarely used Tharaphu (Saraphu) and soalso it was the same on Buddh' s head. Maghite was always thechoice both for Buddha and the King.

However here in all Thai style Buddha images, onlyTharaphu crowns the head.

These are found to be 'repelling danger' gesture. In Laosthis repelling gestures is popularly known as ‘Phra Bang'.

PPPPPhra Bang Imagehra Bang Imagehra Bang Imagehra Bang Imagehra Bang ImageWhen a standing Buddha displays his palm up and another

with index pointing towards worshipper, it conveys a meaning‘‘You! Don't Worry, Don't Fear'’ . In other words, it repels dangerand gives protection.

If two palms are held up, it was known as ‘Double PhraBang’ image. This Phra Bang image was so popular and mostrevered in the whole of South-east Asia.

In Laos, Laotian people offer the most profound respectand honor to ‘Phra Bang' image. The whole nation and people

Difference of the Makuda and Tharaphu isDifference of the Makuda and Tharaphu isDifference of the Makuda and Tharaphu isDifference of the Makuda and Tharaphu isDifference of the Makuda and Tharaphu isconspicuousconspicuousconspicuousconspicuousconspicuous

Very well, the ear piece (a decoration flap behind the ear)is either Myanmar design or Thai. (See figures and King Thibaw'sMaghite) Both types are fpound in Myanmar.

Tha-ra-phu


ACUMEN ⏐ 73

believe that this image would protect themfrom all dangers.

In ancient time, this image was kept in Luang Pra Bang,the northern capital. The capital itself derived its name fromthis image. Now this sacred mage is kept in Vien Chan, thepresent capital.

Ancient Myanmar documented this capital as ‘Mai LongKha Bin’ which derived etymologically from Muang Luang PhraBang!

In conclusion, the standing Buddha images with ‘dangerrepelling' gestures were still revered in the distant village, deepin the interior of Myanmar, revealing their deep faith and respect

to the religion.What the captain of the village did in the bygone past was

a good example that Myanmar soldiers in Ayutthiaya battlerespected Buddha images. It was a standing witness againstwhat few Thai scholars wrote in their history books.

There are many such examples as we can still find Buddhaimages with Thai design. These images are now found on highalter in monasteries as the families which revered themgeneration after generation fmally handed over to abbots. (Seetwo photos of Thai Buddha images.) A


74 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m October 2013

Dining Out


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Dining Out- Marrybrown.pmd 10/13/2013, 1:57 PM75

adv.pmd 10/10/2013, 8:28 PM11

adv.pmd 10/10/2013, 8:27 PM11


SUN 8M - 711 8:40 13:15

Guangzhou - Yangon

MON CZ - 3055 14:45 16:35

TUE 8M - 712 4:15 15:50

WED CZ - 3055 8:40 10:30

THU 8M - 712 4:15 15:50

FRI CZ - 3055 14:45 16:35

SAT CZ - 3055 8:40 10:30

SUN 8M - 712 4:15 15:50

Yangon - Phnom Penh

WED 8M - 403 16:50 19:15

SAT 8M - 403 16:50 19:15

Phnom Penh - Yangon

WED 8M - 404 20:15 21:40

SAT 8M - 404 20:15 21:40

Yangon - Teipei

MON CI -7916 10:50 16:15

TUE CI -7916 10:50 16:15

WED CI -7916 10:50 16:15

THU CI -7916 10:50 16:15

FRI CI -7916 10:50 16:15

SAT CI -7916 10:50 16:15

Teipei - Yangon

MON CI -7915 7:00 9:55

TUE CI -7915 7:00 9:55

WED CI -7915 7:00 9:55

THU CI -7915 7:00 9:55

FRI CI -7915 7:00 9:55

SAT CI -7915 7:00 9:55

Yangon - Kunming

MON MU - 2012 12:20 18:35

TUE CA - 906 14:15 17:35

MU - 2032 14:40 18:00

WED CA - 906 14:15 17:35

MU - 2012 12:20 18:35

TUE TR - 2826 17:00 18:25

WED TR - 2826 17:00 18:25

THU TR - 2826 17:00 18:25

FRI MI - 520 22:10 23:35

TR - 2826 17:00 18:25

SAT TR- 2826 13:15 14:45

SUN MI - 520 22:10 23:35

TR - 2826 17:00 18:25

Yangon - Bangkok

DAILY FD - 2752 08:30 10:20

FD-2756 12:15 14:05

FD - 2754 17:50 19:35

Bangkok - Yangon

DAILY FD - 2751 07:15 08:00

FD - 2755 11:10 11:45

FD - 2753 16:35 17:20

Yangon - Kuala Lumpur

DAILY AK - 1427 8:30 12:50

MH - 741 12:15 16:30

MH - 743 15:45 20:00

MON 8M - 501 7:50 11:50

WED 8M - 501 7:50 11:50

SAT 8M - 501 7:50 11:50

Kuala Lumpur - Yangon

DAILY AK - 1426 06:55 08:00

MH - 740 10:05 11:15

MH - 742 13:30 14:40

MON 8M - 502 12:50 13:50

WED 8M - 502 12:50 13:50

SAT 8M - 502 12:50 13:50

Yangon - Guangzhou

MON CZ - 3056 17:40 22:15

TUE 8M - 711 8:40 13:15

WED CZ - 3056 11:20 15:50

THU 8M - 711 8:40 13:15

FRI CZ - 3056 17:40 22:15

SAT CZ - 3056 11:20 15:50

DDDDDAAAAAYYYYY SSSSS FLIGHTFLIGHTFLIGHTFLIGHTFLIGHT D E PD E PD E PD E PD E P ARRIARRIARRIARRIARRI DDDDDAAAAAYYYYY SSSSS FLIGHTFLIGHTFLIGHTFLIGHTFLIGHT D E PD E PD E PD E PD E P ARRIARRIARRIARRIARRIDDDDDAAAAAYYYYY SSSSS FLIGHTFLIGHTFLIGHTFLIGHTFLIGHT D E PD E PD E PD E PD E P ARRIARRIARRIARRIARRI

Yangon - Bangkok

DAILY TG - 302 14:55 16:50

TG - 306 19:45 21:40

TG - 304 09:50 11:45

PG - 702 10:30 12:25

PG - 704 18:20 20:15

PG - 706 07:15 09:30

8M - 331 16:30 18:15

8M - 335 8:20 10:05

Bangkok - Yangon

DAILY TG - 301 13:00 13:45

TG - 303 07:55 08:50

TG - 305 17:50 18:45

PG - 701 08:50 09:40

PG - 703 16:45 17:35

PG - 705 00:15 21:30

8M - 332 19:15 20:00

8M - 336 11:30 00:15

Yangon - Singapore

DAILY 8M - 231 08:00 12:25

8M - 6232 11:30 16:05

SQ - 997 10:25 14:45

MI - 517 06:40 21:15

3K - 586 11:30 16:05

MON TR - 2827 15:35 20:05

MI - 509 00:25 05:00

TUE TR - 2827 19:05 23:35

WED TR - 2827 19:05 23:35

THU TR - 2827 19:05 23:35

FRI TR - 2827 19:05 23:35

SAT TR - 2827 15:35 20:05

MI - 509 00:25 05:00

SUN TR - 2827 19:05 23:35

Singapore - Yangon

DAILY 8M - 232 13:25 14:50

8M - 6231 09:10 10:40

SQ - 998 07:55 09:20

MI - 518 14:20 15:45

3K - 585 09:20 10:45

MON TR- 2826 13:15 14:45

International Flight Schedules

Flight Schedule.pmd 10/13/2013, 1:48 PM78

ACUMEN ⏐ 79

DDDDDAAAAAYYYYY SSSSS FLIGHTFLIGHTFLIGHTFLIGHTFLIGHT D E PD E PD E PD E PD E P ARRIARRIARRIARRIARRI DDDDDAAAAAYYYYY SSSSS FLIGHTFLIGHTFLIGHTFLIGHTFLIGHT D E PD E PD E PD E PD E P ARRIARRIARRIARRIARRIDDDDDAAAAAYYYYY SSSSS FLIGHTFLIGHTFLIGHTFLIGHTFLIGHT D E PD E PD E PD E PD E P ARRIARRIARRIARRIARRI

THU CA - 906 14:15 17:35

MU - 2032 14:40 18:00

FRI MU - 2032 14:40 18:00

SAT CA - 906 14:15 17:35

MU - 2032 14:40 18:00

SUN CA - 906 14:15 17:35

MU - 2032 14:40 18:00

Kunming - Yangon

MON MU - 2011 8:20 11:30

TUE CA - 905 12:40 13:15

MU - 2031 13:30 13:55

WED CA - 905 12:40 13:15

MU - 2011 8:20 11:30

THU CA - 905 12:40 13:15

MU - 2031 13:30 13:55

FRI MU - 2031 13:30 13:55

SAT CA - 905 12:40 13:15

MU - 2031 13:30 13:55

SUN CA - 905 12:40 13:15

MU - 2031 13:30 13:55

Yangon - Beijing

TUE CA - 906 14:15 21:55

WED CA - 906 14:15 21:55

THU CA - 906 14:15 21:55

FRI CA - 906 14:15 21:55

SUN CA - 906 14:15 21:55

Beijing - Yangon

TUE CA - 905 8:05 13:15

WED CA - 905 8:05 13:15

THU CA - 905 8:05 13:15

FRI CA - 905 8:05 13:15

SUN CA - 905 8:05 13:15

Yangon - Chaing Mai

SUN W9 - 9607 14:20 16:10

Chaing Mai - Yangon

SUN W9 - 9608 17:20 18:10

Yangon - Hanoi

MON VN - 956 19:10 21:30

WED VN - 956 19:10 21:30

FRI VN - 956 19:10 21:30

SAT VN - 956 19:10 21:30

SUN VN - 956 19:10 21:30

Hanoi - Yangon

MON VN - 957 16:35 18:10

WED VN - 957 16:35 18:10

FRI VN - 957 16:35 18:10

SAT VN - 957 16:35 18:10

SUN VN - 957 16:35 18:10

Yangon - Ho Chi Minh City

TUE VN - 942 14:25 17:10

THU VN - 942 14:25 17:10

SUN VN - 942 14:25 17:10

Ho Chi Minh City- Yangon

TUE VN - 943 11:40 13:25

THU VN - 943 11:40 13:25

SUN VN - 943 11:40 13:25

Yangon - Seoul

DAILY OZ - 770 0:35 9:10

THU KE - 472 23:35 08:05+1

SUN KE - 472 23:35 08:05+1

Seoul - Yangon

DAILY OZ - 769 19:50 23:25

WED KE - 471 18:40 22:30

SAT KE - 471 18:40 22:30

Yangon - Doha

MON QR - 619 8:15 11:15

THU QR - 619 8:15 11:15

FRI QR - 619 8:15 11:15

Doha - Yangon

WED QR - 618 21:05 07:00+1

THU QR - 618 21:05 07:00+1

SUN QR - 618 21:05 07:00+1

Yangon - Tokyo

DAILY NH - 914 21:45 PM06:50+1

Tokyo - Yangon

DAILY NH - 913 10:30 15:30

Yangon - Hong Kong

MON KA - 251 1:10 6:00

TUE KA - 251 1:10 6:00

THU KA - 251 1:10 6:00

SAT KA - 251 1:10 6:00

Hong Kong - Yangon

MON KA - 250 21:45 23:30

WED KA - 250 21:45 23:30

FRI KA - 250 21:45 23:30

SUN KA - 250 21:45 23:30

Mandalay - Bangkok

TUE TG-781 7:25 08:50

WED TG-781 7:25 08:50

FRI TG-781 7:25 08:50

SAT TG-781 7:25 08:50

SUN TG-781 7:25 08:50

Bangkok - Mandalay

TUE TG-782 9:30 11:55

WED TG-782 9:30 11:55

FRI TG-782 9:30 11:55

SAT TG-782 9:30 11:55

SUN TG-782 9:30 11:55

Flight Schedule.pmd 10/13/2013, 1:48 PM79

80 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m November 201380 ⏐ ACUMEN w w w. my a n m a r b 2 b m a g a z i n e. c o m November 2013

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acumen magazine november 2013

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