Thura NewsViews. Myanmar Economics and Politics. Weekly Newsletter. Issue 251, January 12, Politics

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1 Issue 251, January 12, 2017 Thura NewsViews Politics Special rapporteur says access blocked in Kachin State The UN s special rapporteur for human rights in Myanmar, Ms Yanghee Lee, was prevented from visiting some areas during her visit to Kachin State, according to reports. Her spokesperson U Aye Win told the local news: She was not allowed to travel to Laiza and Hpakant. Lee is currently in Myanmar on a 12-day visit assessing the human rights situation in the country. A statement before she arrived said that during her visit to Kachin State she expected to go to the state capital Myitkyina, as well as Hpakant and the border town of Laiza, which is under the control of the Kachin Independence Army (KIA). She was quoted by Voice of America as saying she had experienced inconvenience while visiting the state, which has seen significant fighting, mostly between the Tatmadaw and KIA in recent months. I was not allowed to visit the places which I applied to visit, she was quoted as saying, adding that it harms my rights and duties. Lee is also expected to visit northern Rakhine State during her visit, and is scheduled to spend three days in Maungdaw Township, one of the areas most heavily affected by recent attacks on security forces in October and the resulting security crackdown. ICG ranks Myanmar as one of world s most volatile countries Myanmar has been named as one of the world s most potentially explosive countries for conflict, said an international think-tank. International Crisis Group ranked Myanmar as 8 th on the list of the world s most volatile flashpoints. In a commentary published alongside the report, Mr Jean-Marie Guehenno, president and chief executive of ICG, said that recent fighting in the country had jeopardised efforts to bring an end to decades of civil war. Kachin, Shan and Rakhine states have seen some of the most intense fighting in recent months. Guehenno said that the recent fighting between the Tatmadaw (Myanmar s armed forces) and four ethnic armed groups who call themselves the Northern Alliance was unprecedented and was a significant setback to the peace process. This does not bode well for progress at the next sessions of the 21 st Century Panglong Conference slated for February, Guehenno wrote. He also referenced the heavy security crackdown in northern Rakhine State in response to attacks on police outposts there in October. The response has achieved significant criticism from abroad, but the govern- Thura Swiss Ltd. Economic Research Shwe Hinthar B /2 Miles Pyay Road 11 Qtr. Hlaing Tsp. Yangon, Myanmar Phone +95 (0) Fax +95 (0) info@thuraswiss.com January Highlights An estimated 65,000 people mainly those who self-identify as Rohingya have fled from northern Rakhine State into Bangladesh, according to the UN. Eleven Media s CEO and chief editor have been released on bail after being detained for nearly two months over clause 66(d) of the Telecommunications Law. The Ta ang National Liberation Army (TNLA) has called the government s approach to the peace process ineffectual.

2 ment and military have strongly denied any accusations of using disproportionate force on civilians. Other flashpoints on the list include Syria, Iraq, Ukraine and Afghanistan. Arakan League for Democracy reforms in Rakhine State After a split in the Arakan National Party (ANP) last year, part of the faction that was ousted has reformed an old political party, the Arakan League for Democracy (ALD). Many of the members who left the ANP were previously aligned with the ALD, which merged with the Rakhine Nationalities Development Party (RNDP) to form the ANP. Despite the ANP s success in the 2015 election, where it was the most successful ethnic minority party winning 22 of the 34 seats in the Rakhine State parliament, there was often a fraught relationship between the two factions, leading to the split. U Myo Kyaw, who was expelled from ANP, told local news that he believed that the new party needed to be formed to help development in Rakhine State. However, the report mentioned that some of the most prominent former ALD members had remained with the ANP out of loyalty, including former ALD leader U Aye Thar Aung. Critics of the re-emergence of the ALD have said it is unnecessary to have two political parties representing ethnic Rakhine people. The ALD is generally regarded as being closer to the ruling National League for Democracy (NLD) than the more conservative RNDP faction. The NLD upset the ANP after the election when it did not make a party member the chief minister of the restive state, despite its majority in the state parliament. Economy Trade drops at Muse border point Border trade with China at Muse has dropped more than US$ 400 million this financial year. Although no reason was given, the fall is likely to be linked to recent fighting between the Myanmar army and a coalition of ethnic armed groups that call themselves the Northern Alliance in the area. A state-run newspaper reported that border trade at Muse from April 1 to December 23 was US$ billion, down from US$ million over the same period last year. The report also said that border trade with China through Kengtung, in eastern Shan State, had also fallen significantly, from US$ 7.2 million to US$ 3.6 million over the same period. The article did not give a reason for the fall, but in November four groups the Kachin Independence Army (KIA), the Ta ang National Liberation Army (TNLA), the Arakan Army (AA) and the Myanmar National Democratic Alliance Army (MNDAA) launched attacks on several Tatmadaw outposts near Muse. The group said the attacks were inevitable due to repeated Tatmadaw offensives in recent months. Companies and Investments MAPCO begins work on industrial parks Myanmar Agribusiness Public Corporation (MAPCO) is building an agricultural industrial park in Ayeyarwady Region aimed at attracting considerable investment in the country s growing agriculture sector. MAPCO said it plans to invest Myanmar in Figures GDP (PPP): $283.5bn (2015) GDP (official ex.rate): $66.98bn (2015) GDP growth rate: 8.3% (FY proj.) Population: 51.4mn people (2014) Inflation: 11.5% (2015) Foreign trade: $22bn (2015) FDI: $64bn (31/07/2016) International reserves: $9.4bn (Dec 2015) CBM rate Kyat/$ = 1355K/1$ (11/01/17) For advertising with Thura Swiss please contact us by info@thuraswiss.com or by phone +95 (0) Please note that our advertisement contracts are based on a subscription of a minimum of 4 weeks. 2

3 US$ 12 million in the park, which is located in Myaungmya Township and is expected to be completed by November MAPCO has a plan to build small and medium-scale agri-industrial parks in areas where agriculture is very much specialised, U Ye Min Aung, MAPCO s managing director was quoted as saying by a local report. He added that investors from Japan, Thailand, China and Taiwan have expressed interest in a series of industrial parks in different parts of Myanmar. The report said that there had been no approved foreign investment in the agricultural sector in the financial year, citing figures from the Directorate of Investment and Company Administration (DICA). DI- CA deputy general U Than Aung Kyaw said the main reason for a lack of investment was due to strict rules over foreign ownership of land as well as the lack of areas in the sector where full foreign ownership is allowed. The Myanmar Investment Commission (MIC) has gradually been reducing the list of industries in which a local partner is required. MAPCO has also announced plans to build an international-standard fertiliser plant at the Thilawa Special Economic Zone on the outskirts of Yangon. The development is a partnership with Japan s Mitsui Company and Behn Mayer Company, from Germany. According to reports, the plant aims to meet domestic demand of the product. It is also planning to expand its fertiliser operations in and around Nay Pyi Taw, a report in Eleven Media said. KBZ teams up with Thailand s Kasikorn Bank Myanmar s largest lender Kanbawza Bank has linked up with Thailand s Kasikorn Bank to offer online money transfers for migrants living abroad. The deal is the latest in a series of agreements between Myanmar and Thai banks, primarily aimed at improving services for Myanmar citizens living and working in the neighbouring kingdom. The two companies have signed a Memorandum of Understanding on a service for migrant workers wanting to send money home. To use the service, customers must set up a bank account with Kasikorn, which has more than 1,000 branches in Thailand, and download an app to allow the transfer. Recipients in Myanmar can check and manage the transfers using KBZ s online services, with the service due to launch in March. The specific details about transfer amounts are under discussion with [Kasikorn] bank. They are now focusing on bank promotion to Myanmar migrant workers, said U Maung Maung, KBZ s vice chairman. 3

4 Events Name Details Organizer/Ministries Contact Information Myanmar International Franchise & SME Expo Date: January Creative Myanmar +95 (0) Myanmar Oil and Gas Summit Venue: Sedona Hotel, Yangon Date: January 2017 Oliver Kinross Ltd +44 (0) German Education Fair Venue: Rose Garden Hotel, Yangon Date: 04 February 2017 Goethe-Institut Myanmar +95 (0) Mobile Payments & E- Commerce Emerging Markets Date: February 2017 Mobile Money & Agent Banking Venue: ParkRoyal Hotel, Yangon Date: February 2017 AAPG, EAGE, MGS Myanmar Oil and Gas Conference Date: February 2017 EAGE Education BuildTech Mandalay Venue: Mandalay City Hall, Mandalay Date: February 2017 Sphere Exhibits Myanmar Investment Conference & Trade Fair Date: February 2017 MiTA Services +95 (0) Myanmar Hospitality and Tourism Conference Venue: Park Royal Hotel, Yangon Date: 15 May 2017 Sphere Conferences Emerging Asia FinTech & Agent Banking Summit Venue: tbc, Yangon Date: May 2017 ASEAN Ports and Shipping Venue: Sule Shangri-La Hotel, Yangon Date: July 2017 Myanmar Banking & Finance Conference Date: July 2017 Transport Events, Myanmar Port Authority Sphere Conferences Compack Myanmar 2017 Date: September 2017 Enterprising Fairs (India), Myanmar Industries Association

5 Tenders Ministry of Electricity and Energy: Open Tender Myanma Oil and Gas Enterprise under the Ministry of Electricity and Energy has invited an open tender for the supply of following items in USD and Myanmar Kyats: # Tender No Description Quantity Currency 1) IFB-079 (16-17) Spares for CNG Compressor Cooling System 7 Items USD 2) DMP/L-020 (16-17) Assorted Kind of Engineering Workshop Tools 3 Groups MMK 3) DMP/L-021 (16-17) Brandt Shale Shaker Screen for NAT; 55 Series 3 Items MMK 4) DMP/L-022 (16-17) Mechanical Seal for Andritz Pump 6 Items MMK Tender documents are available at the No. 44 Complex, Finance Department, Myanma Oil and Gas Enterprise, Ministry of Electricity and Energy. Tender applications are to be submitted no later than 16:30 on 24 January Further information can be obtained by phone at +95 (0) ,