STEPPinternational – Myanmar News

Myanmar – Italy cooperation talks

On October 23rd, a conference on Myanmar as a new frontier was promoted by the Italian Ministry of Foreign Affairs and Ministry of Economic Development, in collaboration with the OECD and the Institute Osservatorio Asia. The meeting which was attended by journalists and businessmen provided a realistic assessment of where Myanmar stands now, its many problems to address, but also its resources to offer. To quote some examples: the country´s population is at 90 per cent literate, with a young work force of over 20 millions, and the possibility to develop its vast potential of fertile land, of rich mineral deposits and energy reserves, especially of natural gas, which all need investments like also the communication and infrastructure sector. The general impression gained from the meeting is, that the Country is ready to move, but with very limited financial resources. Foreign finance should be attracted by streamlining the bureaucracy and the acquisition of a better knowledge of management, which the West can best offer.

Problematic Myanmar business rating
The World Bank’s “Doing Business 2014” report, which ranks 189 countries in 10 categories that measure the ease of doing business, placed Myanmar at 182nd, behind Zimbabwe (170th) and Venezuela (181st) and just ahead of the war-torn Democratic Republic of Congo (183rd). The poor ranking underlines the country´s need to improve its business environment for attracting foreign investment and cooperation.

For more: http://www.mmtimes.com/index.php/business/8654-myanmar-among-hardest-places-to-
do-business-says-world-bank.html

Modern banking practices taking root
Mastercard holders visiting Myanmar can use their debit cards for cash withdrawals from Co-operative Bank automatic teller machines (ATM) following the launch of services on Thursday, November 15. Services might be extended to credit cards based on customer feedback, if the Central Bank permits. Also Visa cards are already accepted at about 90 places operated by Co-operative Bank and Kanbawza Bank throughout the country according to Visa Inc., although reported IT problems are holding back operations.

• We welcome your comments on your personal experience with cash withdrawal from ATM.

For more: http://www.mmtimes.com/index.php/business/3158-mastercard-marks-first-atm-
transaction.html; http://www.mmtimes.com/index.php/business/3671-visa-s-service-moves-too-
fast-for-partner.html

The promotion efforts of STEPPinternational regarding higher education are showing their first results: The Ministry of Science and Technology of the Union of Myanmar has positively responded to the Letter of Interest in scientific co-operation submitted by the Munich University of Applied Sciences, Civil Engineering Department which had been discussed in March this year with the Yangon Institute of Technology by STEPPinternational in Myanmar. A first direct encounter between both Universities is planned for the near future in Myanmar.

28.10.2013, Munich, Germany

On the occasion of this international transport conference, STEPPinternational represented by its President, Dr. Goetz, introduced Myanmar “as promising cooperation partner” and informed about the transport situation in Myanmar Maritime and river transport sector.

Click here to read the presentation document

In parallel to Government efforts to allocate more funds to the primary and middle education facilities in the forthcoming financial years, there are various cooperation initiatives underway to up-grade and modernise the higher education sector.

On February 21st, Dr. Franz Goetz together with Ambassador Brunetti from STEPPinternational (<www.steppinternational.com/>) had discussions on behalf of the Munich University of Applied Sciences, Germany with representatives of both the Yangon Institute of Economics and the Yangon Technical University ( see the photo below) concerning possibilities and opportunities for inter-university cooperation. In both fields, the Munich University program ranges from Bachelor to Master Courses to international Degree Programs, all conducted in close cooperation with the private sector. On engineering issues, representatives of the Myanmar Engineering Society took part in the dialogue.

Hotel prices have skyrocked during the past two years! A hotel room in an average three star hotel has in some cases tripled during this period,  without being justified by improvements in structures and services offered, only pushed by the sudden rise in demand since the recent opening of the country to the West. In other words: While you are still blown out of your bed by the same overaged air-conditioner at night, your travel buget shrinks at the speeed of light during the day.  Of course, by now you don’t even dare any more to question this inflationary trend, because you have been among the lucky ones who have found an empty hotel room in Yangon, a city today besieged by low-buget tourist groups and would-like to be businessmen. As much as the recent tourist boom has been and remains to be an excellent news an otherwise ailing  hotel industry, it has become a big huzzle especially for the individual traveller.

With great satisfaction therefore we read what has been published in the february 25 edition of the local Myanmar Times (“Long -term strategy  needed for hotels”) where it rightly says: ” It is important to recognise that first-time visitors to Myanmar are probably not first-time travellers in Asia. They have been to other countries in the region and rate the satisfaction level of their hotels in Myanmar against what they have experienced elsewhere in Asia. Their expectations ,therefore, of their Myanmar travel experience are high and not necessarily likely to be met.”

Some may argue that such comparison is the wrong approach to this certainly unique Asian country. Nevertheless, it might be wise from the ones responsible for tourism development in Myanmar to take into consideration the concerns voiced in the same article, namely that it is reality “that negative publicity about disappointing travel experiences travels faster and reaches more people than the positive stories.”

The best way forward is certainly to guarantee a condusive environment for investors in the hotel sector, increasing the number of rooms as well as services quality. A further solution to the problem could be to establish a transparent rating system for hotels based on international understanding, which would help a performance-based adjustment of room rates

Efficient land management- a future challenge.Land grabbing is a global phenomena which often goes along with foreign investments in  various sectors, ranging from mining through manufacturing and construction to agriculture. This phenoma increasingly  also might concern developments in Myanmar. The article written by Ariane Goetz mentioned below collects empirical evidence on the subject in  general and investigates into related investors motivations and investment policies, tracing back overseas investments of China and UK.

Landgrabbing – Goetz

http://www.nytimes.com/2012/11/09/world/asia/obama-to-visit-myanmar.html?ref=world

Where is Yangon going?

We are scared about the news, that Mandalay Golden Wings Construction company unveiled plans to build the country’s tallest building in Yangon’s Mayangone township. (see: http://www.mmtimes.com/index.php/business/property-news/2724-mgw-plans-nations-tallest-
building.html ) The company has started work on the US$60-million, 34-storey Diamond Inya Palace building on a 2-acre block near Inya Lake, and expects to finish by the end of 2015, a Mandalay Golden Wings spokesperson said last week.

We ask the question if Yangon has decided to go the way of its neighbors, where former typical Asian-style of cities have lost their identity by mistaking socio-economic progress with the cementification of the environment , copying the high-rise skyline of New York.

Whereas in NY it has been justified by the limited space of the island of Manhattan, this has not been the case in, for example, Kuala Lumpur, where a streetwalker today can hardly see the sky (see the photo below!). And limited space is neither the situation of Yangon, where there is plenty of space for sustainable urban development. Therefore, Myanmar please wake up and prepare a construction code which preserves instead of destroying Yangon´s unique urban identity!

After four years, Qatar resumes Yangon service.

Qatar Airways resumed flights to Myanmar, Yangon in October . While flights will initially operate
from Doha to Yangon on Wednesdays, Thursdays and Sundays, with return flights on Mondays,
Thursdays and Fridays, the service will increase to daily frequency from October 28.

For more: http://www.mmtimes.com/index.php/lifestyle/travel/2294-after-four-years-qatar-resumes-yangon-service.html

Foreign energy giants line up for tender.

Leading oil and gas companies from the West and Japan, recently freed from US economic sanctions, are looking closely
at Myanmar’s upcoming oil and gas tender, Ministry of Energy sources said last week. U Soe Thein, a minister of the
President’s Office and head of Myanmar Investment Commission (MIC), said he expected parliament to approve the heavily
debated foreign investment law when it meets again in October. “We have set criteria for responsible foreign direct
investment in Myanmar, including corporate social responsibility projects. Concerning the mining and oil and gas sectors we
are looking at joining the Extractives Industry Transparency Initiative, which involves a step-by-step process of transparency
in revenue processes,” he said at the Asia Society in New York on September 27.

For more: http://www.mmtimes.com/index.php/business/2246-foreign-energy-giants-line-up-for-tender-says-official.html

Visa edges closer to re-entering Myanmar.

Initially, Visa plans to target the influx of tourists that Myanmar is already beginning to receive International flight arrivals
jumped 63pc in 2009-2010 and an additional 32pc in 2010-2011. At present tourists find themselves needing to carry
large sums of cash, as the country has no ATMs that accept foreign bankcards. Since Myanmar’s lack of infrastructure,
particularly outside of Yangon, Nay Pyi Taw and Mandalay, it could allow Visa to leapfrog traditional electronic payment
methods like cards and move straight into the mobile banking model in rural areas.

For more: http://www.mmtimes.com/index.php/in-depth/2004-visa-edges-closer-to-re-entering-myanmar.html