Week in Review: Myanmar

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Myanmar Eleven
HOME AEC AEC NEWS MON, 7 MAR, 2016 1:00 AM

Volkswagen gets distributor

Volkswagen appointed Yoma German Motors, a subsidiary of Yoma Strategic Holdings, its official distributor of a range of passenger cars and SUVs in Myanmar.

Since October 2013, the group has provided after-sales, service and Volkswagen spare parts distribution.

It also has a contract to represent Mitsubishi Motors in the servicing and distribution of passenger vehicles and light commercial vehicles. It also operates a service centre for Hino trucks and buses.

MPT targets business clients

MPT launched IP-VPN (Virtual Private Network) service for businesses, having CB Bank as the first client.

The new service is provided, using the nationwide IP network, also used for its 3G network, the largest in Myanmar.

It said the new service is more flexible, easier to expand and less expensive to operate.

Domestic investment

Local companies invested 726 billion kyats during April and September, the first half of the 2015-16 fiscal year, according to the National Planning and Economic Development Ministry.

Hotels and tourism sector won the highest sum, 199 billion. This was followed by 157 billion in manufacturing, 150 billion in housing development and 149 billion in transport. About 28 billion was invested in livestock breeding and fisheries.

In the 2014-15 fiscal year, domestic investment amounted to 1.2 trillion kyats.

Industrial development

The Myanmar Industries Association and South Korea’s Jelloabukdo Industries Association signed a bilateral agreement to promote Myanmar’s industrial sector.

Twenty-seven Korean businessmen visited the country and another group schedules its visit for next month. Technological aid will be also provided.

At the end of 2015, South Korean companies had invested US$3.3 billion in the country.

Farmers plough land seized in 1970s

Mandalay farmers ploughed in protest on fields that were seized by the army in the 1970s to mark “Peasants’ Day” in Katatchin village.

The Central Command seized more than 200 acres of land during the Revolutionary Council government in the 1970s and eventually permitted Tin Maung, the proprietor of the Great Wall Company, to rent it back to other farmers.

Rohingya left behind

John Ging, director of operations at the UN’s Office for the Coordination of Humanitarian Affairs (UNOCHA), said he was shocked to see the state of the Rohingya refugee camps during his February visit, according to AFP.

He mentioned that the Rohingya continue to languish in “dreadful conditions” with children dying because they are refused healthcare. He added that the Muslim minority risked being forgotten in the afterglow of recent elections.

SME loan scheme fails

Myanmar Insurance Enterprise (MIE) announced zero success in the credit insurance scheme for SMEs, which was launched in June 2014.

Banks were reluctant to lend under the Credit Guarantee Insurance, MIE spokesperson said.

Under the scheme, MIE is tasked to assure lenders of partial repayments should the borrowers fail to honour debt obligations.

Mandalay commemorates 17 martyrs killed in ‘1300 Revolution’

A ceremony to commemorate the 17 martyrs who were killed in the ‘1300 Revolution’ was held at the Martyrs’ Mausoleum in Mandalay Region.

The 1300 Revolution was a movement in which oil workers went on strike to demand better wages and working conditions in 1939. While marching down 26th Street Mandalay’s Eaindawyar Pagoda on February 10 that year, British colonial authorities shot into the crowd, killing seven Buddhist monks and 10 others.

Bid to develop tourism in Indonesia’s Sumbawa

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The Jakarta Post
HOME AEC AEC NEWS SUN, 6 MAR, 2016 6:24 PM

MATARAM – West Nusa Tenggara (NTB) administration will push the development of hotels and other tourist facilities in Sumbawa.

“We’ve been talking with several investors who have expressed interest in getting involved as Sumbawa needs a boost,” NTB deputy governor Muhammad Amin said.

Amin said Sumbawa had huge tourism potential, but most investors were focusing on investing in its neighbouring island of Lombok.

“We’re calling on investors to come and see Sumbawa and invest there, too, not only in Lombok,” he said.

The improvement is needed to achieve the administration’s target to attract 3 million tourists to NTB.

Chairman of the NTB Hotel Association, I Gusti Lanang Patra, said that to be able to achieve the target, the administration should also oversee the development of hotels in Lombok to control the quality of service.

“If there’s no control over hotel development, operators will not pay attention to their services,” he said.

Four foreign banks win Myanmar licences

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Myanmar Eleven
HOME AEC AEC NEWS SUN, 6 MAR, 2016 6:00 PM

YANGON – The Central Bank of Myanmar has granted four banks preliminary approval to prepare for operations in Myanmar.

They are Bank for Investment and Development of Vietnam, E Sun Commercial Bank from Taiwan, Shinhan Bank from South Korea and the State Bank of India.

The preliminary approval is valid for 12 months during which the successful applicant will have to fulfil commitments made in their applications.

The CBM invited applications for foreign bank licences between December and February 8, for the second time.

Taiwan topped the application list with eight.

The other seven Taiwanese banks were Cathay United, CTBC, First Commercial, Mega International, Taiwan Business, Taiwan Cooperative and Taiwan Shin Kong Commercial.

Among the applicants were Kookmin Bank and Shinhan Bank from South Korea and the State Bank of Mauritius.

The CBM has granted branch licences to foreign banks for the first time since 1963.

Since October 1, 2014, the green-light has been given to nine banks from six countries.

They can only open one branch with an initial investment of US$75 million and a deposit of more than half of the investment at the CBM.

Branches are not allowed to offer retail-banking services and will have to provide wholesale-banking services in cooperation with foreign companies and domestic banks.

The foreign banks can grant loans to domestic banks and foreign companies in kyat with an interest rate between 10 and 13 per cent.

They can also grant loans in foreign currencies.

Singaporean firms help employees strike work-life balance

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http://www.nationmultimedia.com/aec/Singaporean-firms-help-employees-strike-work-life–30280885.html

Benson Ang
The Straits Times
HOME AEC AEC NEWS SUN, 6 MAR, 2016 3:05 PM

SINGAPORE – Every Friday at 3.30pm – a time many cubicle rats are still working off the post-lunch food coma – staff at Singapore architectural and design firm Ministry Of Design are calling it a day.

Released from work, some people such as architectural designer Angie Ng, 30, use the time to run errands before the bank closes for the weekend.

She says: “Getting off early is great because it lets me do crowd-free shopping. If I’m travelling, it lets me catch an earlier flight, so I essentially get an additional half day of holiday time.”

Other employees such as senior architectural designer Darren Yio, 36, visit museums, bookshops and cinemas before the crowds descend in the evening.

As the saying goes, all work and no play makes Jack a dull boy.

Companies are catching on to the importance of work-life balance as a way of keeping employees happy and productive.

Some, like Ministry Of Design, have designated early-release days. Other organisations introduce measures such as flexible hours, telecommuting and extra leave days on occasions such as employee birthdays.

This may seem counter-intuitive, especially in a time when technology is making workers accessible 24/7.

However, some companies realise that going the extra mile to help employees maintain a healthy and balanced lifestyle pays off.

A 2003 study by the Singapore National Employers Federation on 11 Singapore-based organisations found that for every $1 spent on family-friendly programmes, the organisation reaped a return of $1.68.

Organisations with work-life strategies saw higher productivity, improved employee engagement and satisfaction, as well as higher retention of talent.

Social media company Facebook, for example, has allowed its full-time working fathers at its global offices – including those here – up to four months of paid paternity leave since January.

Different companies have different ways of promoting employee work-life balance.

In Singapore, workers covered under Part IV of the Employment Act are entitled to between seven and 14 days of paid annual leave if they have worked for at least three months.

But many companies provide more types of special leave days, although they are not required by law to do so.

A Conditions Of Employment survey conducted by the Ministry of Manpower in 2014 found that 89 per cent of employers provide compassionate leave, 71 per cent provide marriage leave and 37 per cent provide study or examination leave.

The proportion of establishments which provided at least one formal flexible work arrangement also rose from 38 per cent in 2011 to 47 per cent in 2014.

From interviews with organisations, the most common practice is flexible working hours. Some organisations that offer such an arrangement include DBS, OCBC, Citibank and Standard Chartered; property groups such as Lendlease and CapitaLand, as well as National University Hospital.

Several companies also release their staff early on certain days.

At public relations company Word Of Mouth Communications, staff may leave the office at 1pm on the last Friday of the month.

Public relations manager Cindy Foo, 29, uses the afternoon to have lunch with her parents or friends, or read a book at a library or cafe.

She says: “My working friends are envious of me because I get to leave work early every month, but I treat this as a reward for a month of hard work.”

OCBC Bank allows its staff to leave work an hour early every Friday. On that day, for example, vice-president for consumer financial services Evon Lee, who is in her 30s, leaves work at 5.30pm instead of the usual 6.30pm.

She says: “I like that I can spend more time with my family over a good dinner on Fridays.”

Employees at Standard Chartered are encouraged not to organise any internal meeting or conference call after 3.30pm on Fridays.

Office hours at DBS main offices end at 5pm on Fridays instead of 6.30pm, and the lights are automatically switched off at that time.

In addition, some companies grant their staff extra leave days to promote their well-being.

Property group Lendlease, for example, lets its employees take three days of well-being leave every year, on top of the regular 22 days of annual leave.

This new leave, introduced last year, can be used to attend a yoga class, go on holiday or pursue personal interests. The company does not have to be informed of what the employee does.

Deputy fund manager Joey Gabbani, 39, spent her well-being leave last year with her sons Luca, 21/2, Marco, one, and mother, Madam Lim Cheng Khee, 70.

Home-grown telco Singtel also gives its staff five days of flexi-family leave a year, seven days of study and examination leave for those pursuing approved courses of study and a day of voluntary service leave to do community work.

If it is the employee’s birthday, some organisations also give extra perks.

Ministry Of Design allows an employee to take the whole day off if it is his birthday, while DBS gives half a day which can be taken any time during the birthday month.

DBS assistant vice-president Jeanette Kwek, 30, spent her half-day birthday leave at home with her family last year.

She says: “I was glad because although the celebration was simple, it was meaningful. Birthdays aren’t complete without family.”

For employees who are parents, OCBC Bank lets them carry forward 15 days of annual leave to the following year if their child is sitting the PSLE that next year.

The bank’s head of customer insights, Mr Ken Wong, 42, for example, carried forward nine days of leave from 2014, to spend with his son, Keane, for his PSLE last year.

Keane, 12, did well in the examination and has started school at Raffles Institution.

Says Mr Wong: “Being able to carry forward my leave definitely made a huge difference to my son. During that stressful period, I could make sure he stayed focused and I was there if he needed someone to talk to.

“When he needed a break, I would take him for a swim, so he could take his mind off studies.

“The experience made him feel as if we were in it together and helped us bond.”

Agencies in the public service offer arrangements such as staggered working hours and telecommuting, depending on the nature of work.

At Nanyang Polytechnic, for example, about 19 per cent of its 1,500 staff work staggered hours and 33 per cent telecommute. Since 2013, the polytechnic has also let all staff take a day off each year to do community service.

However, for some occupations, there are limits as to how much employees can benefit from such practices.

A spokesman for Khoo Teck Puat Hospital, for example, says telecommuting “may not be entirely possible” for workers such as doctors, nurses and healthcare assistants because they work directly with patients.

Some nurses, however, choose to work a permanent night shift, which fits better with their family lives, adds the spokesman.

Benefits should also not be at the expense of productivity, organisations say.

Mr Lim Teck Kiat, director of human resource policy at the Public Service Division, says: “As a general approach, the flexible work arrangements in the public service must support organisation and workplace effectiveness.”

Nonetheless, Singapore Human Resources Institute president Erman Tan, 51, feels encouraged that more organisations are implementing practices to improve work-life balance among their staff.

He says: “We are heartened to see more organisations shifting from the one-way-street mentality of getting more out of people, to investing in meeting people’s core needs, so that they are inspired to give 100 per cent to their jobs.

“This will ultimately contribute to a happier and more productive workforce and ensure long-term competitiveness for the nation as a whole.”

Singapore eyes closer economic ties with Myanmar

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http://www.nationmultimedia.com/aec/Singapore-eyes-closer-economic-ties-with-Myanmar-30280884.html

Thet Htar
Eleven Myanmar
HOME AEC AEC NEWS SUN, 6 MAR, 2016 2:51 PM

YANGON – Singapore has become the second largest investor in Myanmar with a total reaching US$12.02 billion this financial year, said Robert Chua, Singaporean ambassador to Myanmar, at a ceremony to present UOB scholarships to students.

“Diplomatic relations between Myanmar and Singapore go back 50 years. In recent years, trade between the two countries has increased. In 2015, the trade volume amounted to S$3.5 billion, a 9.6-per-cent increase,” he added.

The Singaporean finance ministry provides assistance for human resources development and policy shifts in cooperation with Myanmar’s finance ministry and the Central Bank of Myanmar.

“Out of the nine foreign banks which got the green-light [to operate here], the UOB and the OCBC from Singapore launched their banking services last year. These two banks can help develop Myanmar’s banking sector and increase foreign investment,” he added.

Until the end of January, Singapore’s total investment reached US$12.02 billion while China’s investment amounted to US$15.44 billion, according to the Directorate of Investment and Company Administration.

Singapore is used as a conduit for a lot of trade and investment with Myanmar from many countries, including the US, which still have complicated relations with the quasi-civilian government.

Najib announces special incentives for Forest City project in Johor

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Nelson Benjamin,
Yee Xiang Yun
The Star
HOME AEC AEC NEWS SUN, 6 MAR, 2016 2:31 PM

ISKANDAR PUTERI – Malaysian Prime Minister Najib Razak has announced four special incentives for the multi-billion ringgit mixed development project Forest City here including making the four man-made islands duty free.

He also announced special corporate tax breaks as well as tax breaks for those involved in tourism, education and healthcare sectors.

“The companies given the tax breaks will not be imposed with restrictions on foreign ownership of their company shares,” he said, hoping that all these incentives are able to help contribute RM175bil in foreign direct investments by 2035.

He added that the project is expected to offer 220,000 job opportunities to Malaysians in the next 20 years.

Najib made the announcement during the launch of the project, which was officially opened by Sultan of Johor Sultan Ibrahim Ibni Almarhum Sultan Iskandar.

The Ruler signed the plaque to launch the project, witnessed by Najib and Mentri Besar Datuk Mohamed Khaled Nordin during the grand opening ceremony held at the Forest City sales gallery here Sunday.

China eyes a smarter economy by 2020

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http://www.nationmultimedia.com/aec/China-eyes-a-smarter-economy-by-2020-30280879.html

Teo Cheng Wee
The Straits Times
HOME AEC AEC NEWS SUN, 6 MAR, 2016 2:21 PM

BEIJING – China aims to have a more innovative, inclusive and environmentally friendly economy by 2020, dumping the “unbalanced and unsustainable” development it has pursued for nearly four decades.

To that end, it plans to raise its investment in research and development to 2.5 per cent of gross domestic product (GDP), up from 2 per cent now, while targeting to increase the contribution of scientific advances to economic growth from 55 per cent now to 60 per cent. It will also expand its high-speed rail network, grow its urban population and cut pollution, according to a development plan unveiled yesterday.

These measures will be the basis for the country’s growth – with a target of at least 6.5 per cent annually – for the next five years, said Premier Li Keqiang when presenting the draft of the 13th Five-Year Plan at the opening of the country’s annual parliamentary session.

The plan is a guide for economic and social progress until 2020. By then China hopes to have eradicated poverty and doubled its 2010 GDP and per capita income – important targets for the Communist Party’s political legitimacy.

The plan builds on the “five development concepts” of “innovation, coordination, green development, openness and inclusiveness” espoused by President Xi Jinping at the party’s Fifth Plenum last year.

Addressing about 2,900 delegates from the National People’s Congress (NPC), Li said it was imperative for China to adopt new technologies and industries while building up human resources and capital. These are part of the economic reforms China has been undergoing, as it aims to move away from traditional growth sectors such as steel, which are set to witness mass layoffs as the country slashes overcapacity.

“Obviously, replacing old drivers of growth with new ones… is a painful adjustment,” Li said. “But it is at the same time an upgrading process with great promise.”

As part of China’s urbanisation plans, he added, the government will grant urban residency to about 100 million people and create more than 50 million new urban jobs. By 2020, urban residents should account for 60 per cent of China’s population, up from 56 per cent now.

The plan also pledged to protect the environment, increase the proportion of China’s middle-income group and reduce the income gap, one of the world’s worst today.

Li said the plan’s success centres on harnessing the potential of the people, whom he described as “an inexhaustible source of power”. “We just have to get through this process, and we can, without question, reinvigorate the economy and ensure its dynamic growth.”

Zheng Xiaohe, an NPC delegate who works in the agricultural sector, said the plan was noteworthy for its “determination to alleviate poverty amid a slowing economy”.

“Taken together with its pledge to promote green growth, you can see that China is more concerned about climbing the happiness index than the GDP ladder,” he told The Sunday Times.

Singapore carriers to track flights – ahead of global deadline

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Karamjit Kaur
The Straits Times
HOME AEC AEC NEWS SAT, 5 MAR, 2016 10:27 PM

SINGAPORE – Singapore carriers must ensure that their flights are tracked at least every 15 minutes, two years ahead of a global requirement. The ruling, announced by the Civil Aviation Authority of Singapore (CAAS) yesterday to enhance safety standards, takes effect on July 1.

All flights by Singapore Airlines, Scoot, SilkAir, Tigerair, Jetstar Asia and SIA Cargo must be tracked throughout their entire duration.

This can be done either manually or automatically initially, but from Nov 8, 2018, only automatic tracking will be permitted.

The move is in line with the International Civil Aviation Organisation’s (ICAO) plans for flights to be tracked every 15 minutes by November 2018.

Flight tracking is being made mandatory to avoid another MH370 tragedy. The Malaysia Airlines flight vanished on March 8, 2014 en route from Kuala Lumpur to Beijing with 239 people on board. The Boeing 777 is presumed to have plunged into the Indian Ocean and has still not been found.

CAAS director-general Kevin Shum said: “The safety of the travelling public is always our priority. CAAS has worked closely with the industry to advance the implementation of the latest rules on enhanced aircraft tracking. When fully implemented, our airlines will have added assurance of the whereabouts and safety of their aircraft operations throughout their network.”

While the new requirement is unlikely to have any manpower impact on carriers, operators of single-aisle planes like Tigerair and Jetstar Asia will need to make significant investments.

This is because unlike widebody planes, smaller aircraft are not fitted with the necessary equipment and technology to support regular flight tracking.

Installing it takes several days and costs about $100,000, The Straits Times understands.

SIA’s acting senior vice-president of flight operations, Captain C.E. Quay, said: “We are supportive of the efforts to improve flight tracking capabilities. Singapore Airlines is already in compliance with CAAS’ new rules, as we have enhanced flight tracking capabilities that give us detailed oversight of our global flight operations.”

Managing director and chief operating officer of Tigerair Ho Yuen Sang said: “We have been working closely with CAAS in order to achieve the highest level of surveillance and tracking for our aircraft. We are confident that these industry-leading regulations represent a significant step forward in aviation safety which is our top priority.”

S Korea, VN ink trade and investment deal

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http://www.nationmultimedia.com/aec/S-Korea-VN-ink-trade-and-investment-deal-30280969.html

Viet Nam News
HOME AEC AEC NEWS SAT, 5 MAR, 2016 5:24 PM

HCM CITY – The Korea Trade-Investment Promotion Agency (KOTRA) yesterday signed a memorandum of understanding with the Investment and Trade Promotion Centre of HCM City (ITPC) to facilitate the exchange of investment and trade information between the two sides.

The MoU also aims to boost import and export activities between the two countries.

Pham Thiet Hoa, ITPC’s director, said under the agreement, both sides would cooperate to disseminate information about the free trade agreement between Vietnam and South Korea, and solve obstructions in investment and trade in each other’s markets.

KOTRA yesterday also signed an MOU with the Saigon High-Tech Park to promote investment of South Korea firms in the hi-tech sector in Vietnam and boost co-operation between Vietnamese and South Korean businesses.

Roh Inho, vice president of KOTRA in charge of ASEAN and Oceania, said the Vietnam and South Korea FTA, which took effect last December, opened opportunities for Vietnam’s key export items, including farm produce, fisheries products, garment and textile and footwear to enter the South Korean market.

South Korea has a high demand for tropical fruits like mango and pineapple, making it a promising market for Vietnam, according to the KOTRA official.

With lower tariff duties under the FTA, South Korean firms will have opportunities to boost exports of raw materials and accessories for the garment and textile sector, household equipment, cosmetics and others.

In order to increase exports to South Korea, Vietnamese firms need to focus more on improving product quality, design and competitive prices.

Speaking at the Korea-Vietnam FTA in HCM City yesterday, Park Noh Wan, the South Korean Consul General in HCM City, said more than 2,500 South Korean firms were operating in HCM City and neighbouring localities.

Besides investment in labour-intensive industries like garment and textile and footwear, many invested in hi-tech sectors like electricity and electronics, contributing to the development of Vietnam’s industrial sector, he said.

Nguyen Thi Thu, deputy chairwoman of the HCM City People’s Committee, said the city welcomed foreign companies, including those from South Korea, to research investment opportunities in the city.

The city pledged to create the most favourable conditions for their operations, she said.

Hydropower production doubles in Asia

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http://www.nationmultimedia.com/aec/Hydropower-production-doubles-in-Asia-30281058.html

Vientiane Times
HOME AEC AEC NEWS SAT, 5 MAR, 2016 3:16 PM

VIENTIANE – Asia’s hydropower capacity and production has more than doubled over the last 10 years and could increase by a further 70 per cent over the next 10 years.

The continent’s installed hydropower capacity is now 538 GW or 49 per cent of the world total , according to a report from the Sixth International Conference and Exhibition on Water Resources and Hydropower Development in Asia, held in Vientiane from March 1-3.

Annual production in Asia is about 1,800 TWh, or 46 per cent of the world total, Aqua-Media International reported.

In addition, about 62 per cent of global hydro capacity under construction is in Asia, amounting to just under 100GW.

Asia is the most active region of the world for the development of water infrastructure and most of the world’s highest dams of all types are in Asia.

Laos is a part of this growth and is focusing on the development of hydroelectric power facilities as an appropriate method of achieving sustainable social and economic development through its electrification programme, as well as boosting revenue.

Hydropower potential in Laos is about 26,000MW. The target at present is for 10,000MW to be generated by 2020 and 20,000MW by 2030.

To ensure that hydro projects are safe and sustainable, and that environmental impacts are reduced, cooperation and technical assistance from a large number of private and government organisations is required.

The conference that has just ended in Laos is important because it enabled participants to share their experiences in water resource and hydropower development in Asia.

The event was considered beneficial to all those involved in the hydro, dams and water resources industries, including engineers, consultants, academics and government organisations.

The first conference was organised in Bangkok, Thailand in 2006, while the second was held in Danang, Vietnam in 2008, the third in Sarawak, Malaysia in 2010, the fourth in Chiang Mai, Thailand, and the fifth in Colombo, Sri Lanka.

This week’s conference presented balanced information about the role of hydropower in world energy supply and socio-economic development, as well as the multiple roles of dams.

The annual meetings also aim to keep professionals informed about technical, economic, financial, environment and social aspects of development through various publications, and to promote best practice.

It was noted that Asia is still facing challenges and climate issues. In 2014, more than half the world’s natural disasters occurred in Asia, where river basin floods caused economic losses of US$16 billion.

Water stress, which is intensifying in large areas of Asia including China, the Indian sub-continent and Central Asia, underlines the need for more storage of water.