Myanmar’s plans for an eagerly awaited foreign investment law leave small domestic firms out in the cold, stunting the benefits of proposals aimed at reawakening the economy, business leaders warned Tuesday.

The draft legislation risks cutting out small to medium enterprises (SMEs) by imposing onerous ownership rules, the Union of Myanmar Federation of Chamber of Commerce and Industry said.

UMFCCI Chairman Win Aung told a press conference in Yangon that the proposals stipulate foreign firms can hold only up to 49 percent of a joint venture, with a minimum investment of $5 million — meaning the local partner would have to find significant funds to be the majority owner.

“If so, the local SMEs will lose their role in the upcoming new economic setting,” he said, adding the large stake required could also deter smaller overseas firms.

The investment law is aimed at regulating a flood of interest from overseas companies, which have been eyeing resource-rich Myanmar since the international community began dismantling sanctions to reward reforms.

“When foreign firms enter into the country, we could get technology, investment and access to markets from them,” said Win Aung.

“We all know that there are weaknesses in our SMEs.”

The draft law, which is currently being debated in parliament and is tipped to be passed shortly, was also criticised for not being competitive compared to Myanmar’s neighbours in the Association of Southeast Asian Nations (ASEAN).

Zaw Oo, of the Vahu Development Institute think-tank, said there would be “so much trouble” if the law failed to match those of other regional countries, many of whom do not impose as strict ownership rules.

With huge natural resources and a strategic position between China and India, Myanmar is seen as a potentially huge market for foreign firms as it opens up to the world after years of isolation.

President Thein Sein has vowed to put the economy at the centre of a new raft of measures, following a series of dramatic political changes since decades of military rule ended last year.

The government’s boldest economic reform so far was the start of a managed flotation of its currency in April, overhauling a complex foreign exchange system in a bid to facilitate trade and investment.

Myanmar has since invited foreign firms to invest in the mining sector and signed a raft of oil exploration deals with foreign companies.

Critics say the rewards of the nation’s energy bounty have so far only been shared among foreign investors and the regime, rather than its impoverished people.

Dozens of child soldiers have been discharged from the Myanmar military, state media said Tuesday, months after the country agreed with the United Nations to curb the use of underage recruits.

Forty-two minors were allowed to resign from the armed forces and were handed over to their parents in Yangon on Monday, according to the official New Light of Myanmar newspaper.

There are believed to be thousands of under-18s in Myanmar’s state army and ethnic armed groups, although the exact figure is unknown.

In June Myanmar signed an agreement with the UN pledging to prevent the use of child soldiers and allow access to military units to check for underage recruits.

The agreement was part of efforts by Myanmar’s reformist government to shed its international pariah image following the end of decades of military rule last year.

Myanmar’s new information minister on Sunday predicted newspapers would be able to publish daily from early 2013, heralding fresh reform for a sector recently freed from decades of draconian censorship.

Aung Kyi told the Myanmar Times that state-owned newspapers — currently the only news publications able to be printed daily — would also be revamped with private sector involvement in the coming months.

“It is my sincere belief that daily [private sector] newspapers are essential for a democratic country,” said Aung Kyi, who replaced a prominent hardliner last week when he was appointed as part of a cabinet reshuffle seen as promoting reformists in Myanmar’s government.

The former labour minister, who acted as the liaison between Myanmar’s previous junta government and democracy champion Aung San Suu Kyi while she was under house arrest, said a code of practice should be discussed before changes were made to publication rules for private weekly journals.

He declined to give a firm date for the issuing of daily publication licences to private sector news groups — many of which have turned to the web to provide up-to-the-minute content for a population hungry for information after years of restrictions — but estimated it could be “early next year”.

“I am sincere in wanting to achieve a comprehensive press media law that meets international standards,” he said, suggesting that the new proposed legislation could be delayed to give time for consultation with journalists and experts.

In August Myanmar announced the end of pre-publication censorship, previously applied to everything from newspapers to song lyrics and even fairy tales.

State-owned dailies include the English language New Light of Myanmar, which has shown scant signs of modernising — except for an increase in celebrity gossip — since the country began its reforms.

But Aung Kyi said these publications were in line for “significant changes”.

Since taking office last year, President Thein Sein has overseen a number of dramatic moves in Myanmar such as the release of hundreds of political prisoners and Suu Kyi’s election to parliament.

Reporters jailed under the junta have also been freed from prison and a lighter touch from censors had already seen private weekly journals publish an increasingly bold array of subjects.

But there have been recent signs that it will take time for both newsrooms and the authorities to adjust to the new era of openness.

Two journals were recently suspended for a fortnight for prematurely printing stories without prior approval from the censors, prompting dozens of journalists to take to the streets in protest.

And the mining ministry is suing a weekly publication that reported the auditor-general’s office had discovered misappropriations of funds and fraud at the government division.

Hundreds of Buddhist monks marched in Myanmar Sunday to support President Thein Sein’s suggestion that Muslim Rohingya be deported or held in camps, in the biggest rally since the end of junta rule.

Lines of clerics wearing their traditional deep red robes passed through the streets of Mandalay flanked by crowds of supporters in scenes not witnessed since a monk-led protest in 2007, which was brutally crushed by the country’s then military leaders.

“Protect Mother Myanmar by supporting the President,” read one banner, while others criticised United Nations human rights envoy Tomas Ojea Quintana, who has faced accusations that he is biased in favour of the Rohingya, following deadly unrest between Buddhists and Muslims in western Rakhine state.

Wirathu, the 45-year-old monk who led the march, claimed that as many as 5,000 monks had joined the procession, with another several thousand people taking to the streets to watch.

He told AFP the protest was to “let the world know that Rohingya are not among Myanmar’s ethnic groups at all”.

The monk, who goes by one name, said the aim was also to condemn “terrorism of Rohingya Bengalis who cruelly killed ethnic Rakhines”.

Speaking a dialect similar to one in neighbouring Bangladesh, the estimated 800,000 Rohingya in Myanmar are seen by the government and many Burmese as illegal immigrants and the violence has stoked a wave of anger across the Buddhist-majority country.

Fighting in Rakhine state has left almost 90 people from both sides dead since June, according to an official estimate, although rights groups fear the real toll is much higher.

New York-based Human Rights Watch has accused Myanmar forces of opening fire on Rohingya Muslims during the violence, prompting concern across the Islamic world over the treatment of the stateless group, described by the UN as one of the world’s most persecuted people.

Myanmar has denied a crackdown on Muslims and launched an inquiry into the violence, while Thein Sein has accused Buddhist monks, politicians and other ethnic Rakhine figures of kindling hatred towards the Rohingya in a report sent to parliament last month.

But in comments to the UN High Commissioner for Refugees Antonio Guterres, published on his official website in July, he suggested it was “impossible to accept the illegally entered Rohingya, who are not our ethnicity” and mooted sending the group to a third country or UN administered camps.

Wirathu said Thein Sein, a former general who has launched a series of reforms after taking power last year, had “stood firmly” in his comments to the UN. Although he added that the Rohingya could become citizens, “if they stay peacefully”.

Rallies are expected to continue for two more days, including one in Pakokku town in the Magway region, which was the birthplace of the 2007 mass pro-democracy protests that became known as the Saffron Revolution because of the colour of the monks’ robes.

French oil and gas giant Total said on Monday it had taken a 40 percent stake in an exploration field off the coast of Myanmar, its first investment in the country since sanctions were eased.

Total has been in Myanmar since 1992 — before international sanctions against the military junta were ratcheted up — and operates the offshore Yadana gas field that fuels power plants in Thailand.

In its first investment in Myanmar since 1998, it bought for an undisclosed sum a 40 percent stake in Block M-11 in the Martaban basin from Thailand’s PTT Exploration and Production, which remains the operator.

“With this acquisition, Total will bring its well recognised deep offshore expertise and its world-wide proven technology to contribute to exploration activities in Myanmar and potentially develop the country’s hydrocarbon resources,” the head of Total’s upstream activities, Yves-Louis Darricarrere, said in a statement.

“By doing so, Total will continue to support the country’s economic opening and growth,” he added.

Myanmar has surprised observers with a series of reforms following the end of nearly half a century of military rule last year, leading Western nations to start rolling back sanctions.

Total’s presence in Myanmar has been contested by human rights activists, who accuse it of enriching the junta.

But during a visit to France in June, Myanmar’s opposition icon and Nobel Peace laureate Aung San Suu Kyi called Total a “responsible investor” and said it had made efforts to provide sufficient compensation to those displaced by the Yadana gas line.

Total is one of the few major Western companies operating in Myanmar and has consistently defended its presence by saying that it contributes to the impoverished southeast Asian nation’s development.

(Reuters) – Thailand’s top oil and gas explorer, PTT Exploration and Production Pcl (PTTEP) (PTTEP), said on Monday it had selected units of French Total SA and JX Nippon Oil and Gas Exploration Corp to be its partners in Block M11 in Myanmar.

Total E&P Myanmar will hold a 40 percent stake in the field, located in the Gulf of Martaban, while JX Nippon Oil & Gas Exploration (Myanmar) will hold 15 percent, it said in a statement.

PTTEP, the flagship in the upstream business of Thailand’s top energy firm PTT Pcl, will remain the operator with a 45 percent stake. The deal is subject to approval from Myanmar’s government.

The move is part of PTTEP’s strategy to diversify risk. It plans to drill an exploration well in the block by the third quarter of 2013.

French oil major Total SA (TOT) said Monday it has received fresh oil and gas drilling rights in Myanmar, its latest investment in the country since sanctions were eased.

Total, which had set up in Myanmar before sanctions took effect and faced years of criticism from human rights groups for maintaining a presence in the country, will acquire a 40% stake from Thailand’s state-owned oil firm PTT in its licence area in the Martaban basin. The two firms are already partners in the Yadana offshore gas project.

Total didn’t disclose how much it paid for the share of the rights.

“With this acquisition, Total will bring its well recognised deep offshore expertise and its world-wide proven technology to contribute to exploration activities in Myanmar and potentially develop the country’s hydrocarbon resources,” said Total’s head of exploration and production, Yves-Louis Darricarrere.

“By doing so, Total will continue to support the country’s economic opening and growth,” he added.

Foreign interest in Myanmar’s untapped oil and gas wealth has been piqued as the former British colony begins to emerge from nearly 50 years of isolation and military rule.

Since Myanmar’s harsh military regime voluntarily stepped down last year, a new government led by former soldier Thein Sein has freed political prisoners, loosened reins on the Internet, and aggressively courted foreign investors.

Although Total’s presence in Myanmar was criticized by human rights activists who accused Total of enriching the junta, opposition icon and Nobel Peace laureate Aung San Suu Kyi has since described Total as a “responsible investor.”

Total and U.s. oil giant Chevron Corp. (CVX) are the only two major Western oil companies operating in Myanmar. The French company has defended its presence in the country, arguing that its investments have helped the impoverished nation and aided Myanmar’s social and political development.

The first exploration wells in the block are expected to be drilled in the second half of next year, said Total.

Myanmar has come a long, determined way in its programme to switch from brutal junta rule to a more acceptable form of government.

But it has some serious problems to overcome. The new government’s approach to drug lords and trafficking is discouraging. The rule of law remains as opaque as during the bad years of military dictators. But arguably, no issue illustrates the vast amount of catching up required by the new Myanmar regime than the treatment and attitude towards the Rohingya people.

The recent communal violence in western Myanmar’s Rakhine state should have served as a wakeup. Instead, Myanmar officials have pandered and even participated in a continuing campaign to vilify and demonise the Rohingya. The government itself, including President Thein Sein, blame the killings, destruction and ill feelings on the very existence of the Rohingya people.

The riots themselves, now three months old and continuing sporadically, show a serious, deep-seated problem among different nationalities. Many countries and regions have had similar problems. In today’s world, at least, Myanmar’s leadership is unique. But Thein Sein has taken a hard line _ not against the violence, and not against the instigators of murderous attacks. Rather, the president claims that the Rohingya are largely to blame for being illegal outsiders.

In Mandalay on Sunday, there was a double shock. The first offence was by hundreds of Buddhist monks, clad in their robes. They called on the government to deport or build internment camps for all Rohingya, with no exceptions. The second was the failure of the government to condemn such an immoral call. Such a blatantly racist, anti-religious show of intolerance by the Buddhist clergy deserved at least a reprimand from responsible government leaders.

Instead, from President Thein Sein on down, there has only been positive support for the clerical bigotry. Indeed, the Mandalay monks claimed to be supporting the stand by the president. The president even told the United Nations envoy for Myanmar in July that it was ”impossible to accept the illegally entered Rohingya, who are not our ethnicity”.

Such xenophobia and intolerance is no longer acceptable in today’s world. Ethnic conflicts do exist in Asean countries, but not to the near-ethnic cleansing level as in Myanmar. Other Asean countries do recognise the need to integrate groups who are different from the majority. Cambodia has Muslims, Malaysia has Hindus and the Philippines has Buddhists _ to pick three obvious examples of societies where minority ethnic and religious groups contribute to the nation. And one wonders what the other nationalities of Myanmar think of their president’s words _ the Karen, the Shan, the Kachin and so many others.

The Rohingya of Myanmar are mostly born and unanimously resident of that country. President Thein Sein has no legal authority and no moral standing in claiming they must be deported or imprisoned. International law, religious teachings and common decency all reveal the president’s weak claims.

This is now an issue which must be addressed by friends and neighbours of Myanmar, specifically Asean. The unacceptable handling of both the Rohingya people and the Rakhine riots has opened a new security problem for this region. Muslim countries and the Organisation of Islamic Cooperation have a new focus on our area. President Thein Sein may not want to hear what his neighbours think, but Asean must tell him to change this policy and put his country on a better path.

IT IS very early, the sun just a pale yellow glow peeping from behind the glowering purple mountains, but already several of the distinctive foot-rowing fishermen are paddling their narrow open flatboats across the liquid-silver water of Inle Lake in Myanmar’s Shan province.

Once in their chosen spot they begin the agile dance-like process of casting their enormous semi-rigid cone nets while using their feet to keep the canoe in place.

Occasionally they beat on the top of the lake with their oar to chase the fish from the dense clumps of water hyacinth towards their nets.

It’s a scene that has changed little in centuries although today the fishermen find themselves battling with the wake of the larger, noisier, motorised longboats that transport locals, move bulk goods and exhilarate tourists.

Life here exists entirely on, and from, the beautiful expansive freshwater lake, the second largest in Myanmar. There are whole villages on stilts, houses ranging from small, rather ramshackle bamboo affairs to large double-storey timber structures. Large restaurants and artisans’ workshops are alongside family homes.

The lake is the means of transport, communication, washing and other household amenities, and food production and transportation. Huge floating beds of tomatoes ripen in the brilliant sunshine.

A large colourful market rotates daily between five different lakeside sites and draws the lake dwellers as well as a diverse mix of ethnic groups from the nearby hills and plateaus.

Bagan in Myanmar’s centre is seen by many as the jewel in its crown, home to one of the largest, most breathtaking collections of Buddhist stupas, pagodas and temples in the world, many dating back to the 11th century.

The sheer scope of the structures, a unique memorial to an ancient royal city, takes your breath away, their curves and spires puncturing the horizon. Though some are hardly taller than a human, others are huge ornate edifices that still function as working temples.

It’s impossible to visit them all (numbers seem to vary between 2000 and 3000) but it is worth taking the time to explore some of the larger ones, such as the Tharabar Gate with its tragic tale of lost love and Gubyaukgyi with its magnificent and well-preserved drawings.

Centuries of earthquake damage and haphazard restoration work have tarnished the area’s architectural integrity but, to the amateur visitor, the damaged stupas seem to add to the slightly surreal feel of the landscape.

Just 45km from old Bagan is Mt Popa, famous for its shrine dedicated to animist spirits. The highlight though is Mt Popa Temple, reached via a covered stairway of about 800 steps that is home to a cheeky, occasionally thieving band of monkeys. The effort is rewarded with spectacular views.

Myanmar’s major city is Yangon (formerly Rangoon). Technically it’s no longer the capital - the generals ordered in 2005 it should be moved to Nay Pyi Taw about 320km north in the country’s centre. But Yangon remains the business and diplomatic heart of the country.

Many parts are delightful, with wide tree-lined boulevards lined with huge colonial houses half hidden behind high, ornate walls. Green and lush with a number of large parks, it hasn’t yet been overwhelmed by high-rise buildings, although it is experiencing a huge growth spurt.

Downtown, the golden domed Sula Paya, a working temple, provides what must be the world’s most impressive roundabout.

Not far away there are some of the finest examples of colonial-style buildings such as the former Secretariat Buildings, the one-time seat of government, the historic Strand Hotel, the Myanmar Port Authority and the High Court.

There appears to be a concerted effort to preserve the colonial heritage, although many fear the financial rewards of Myanmar’s rapid commercial expansion will be too much of a temptation to save them all.

It’s worth doing some exploring on foot as you can see into many of the walled enclaves, some now diplomatic enclaves. The National Museum is an unprepossessing building but inside it’s full of treasures and you may well bump into a local only too happy to be your unofficial guide.

Yangon’s biggest drawcard is the awesome Shwedagon Pagoda where holy relics of the Buddha were said to be enshrined 2500 years ago. The golden domes rising more than 100m can be seen shimmering in the sunshine from most parts of the city, or glowing a dramatic orange and red in the sunset.

There are lifts at two of the entrances, but much more pleasant and atmospheric is to make the gentle climb up the eastern stairway past the monasteries.

Just the name Mandalay (about 675km north of Yangon) conjures up images of old-world Asian elegance and charm. First impressions of Mandalay today are a bit of a shock - ugly buildings, choked roads and a bustling commercial centre.

But you don’t have to go far to find the cultural and aesthetic heart. Mandalay Hill, which dominates the horizon, once housed a large royal city and now rewards visitors who climb to the top with spectacular views.

Very close is the Kuthodaw Paya, said to house the largest book of Buddhist scriptures, and Mandalay Palace, a replica of the sprawling royal city and now lying slap in the middle of a major military compound. Foreigners are allowed in but it’s strictly eyes forward only and no pictures of anything soldier-like.

About 90 minutes’ drive away is the hill station of Maymyo, where the architecture and streetscapes are virtually the same as when the families of the colonial rulers came to escape the fierce heat of summer. It has a wonderful sprawling indoor-outdoor market and you can explore the area in horse-drawn carriages.

Myanmar has been officially shunned by most Western countries for decades since the takeover by a brutal military dictatorship and ongoing human rights abuses.

But today many locals are optimistic that the moves towards democracy, in particular the rise of the party led by national hero Aung San Suu Kyi, marks the beginning of a brighter future.Sadly, despite all its natural wealth, most people still live in poverty, with much of the rich resources, such as the huge teak forests, already looted by the families of the ruling cadre.

Stunningly beautiful with a diverse and fascinating history, Myanmar holds enormous promise for locals and visitors alike. The people, big city and the most remote rural community, are universally welcoming.

As Suu Kyi said on her recent international tour, the key is to make sure everyone in the country shares in the benefits from the expected rapid change.

** Tips for travelling in the region **

- Money

It is almost impossible to use credit cards or ATMs in Myanmar. This means you will need to carry a lot of cash. Preferred currency is $US and you will need some very small denominations. Make sure they are not old or creased or have any writing on them. Even the poshest hotel will refuse to accept creased ones.

Local currency is kyats (pronounced chat), which will be given as change - usually very old and scruffy notes.

Things are changing rapidly though, so check the credit card and ATM situation before you set out.

- Visa

Visas are relatively easy to get from the embassy in Canberra. They can be applied for by post, but leave plenty of time. Myanmar has a new airport at Yangon and immigration and Customs was quick. Internal flights (Bagan Air and Air Mandalay) were on relatively new planes and service was efficient and on time.

- Clothing

You will spend a lot of time taking shoes on and off as you enter/leave temples so make sure you take ones you can easily slip on and off and can carry in your bag.

Short skirts, above-the-knee shorts and sleeveless shirts are inappropriate for people to wear in temples. Carry light shawls and longyi, the traditional dress for men and women, in case you need to cover up.

- Getting around

Blackouts are still very common across the country. At night, all but the most major streets have little or no overhead lights, so take a good torch. And batteries.

Beware, particularly in Mandalay, of the army of motor scooters that travel at night without lights. In many parts, including Yangon, take care when walking around as in some places the pavements are non-existent or very badly cracked and uneven.

Coupled with the widespread lack of street lighting it can make walking at night a hazardous exercise if you don’t have a good torch.

- Transport

Most international visitors enter Myanmar from Bangkok or Singapore, arriving at its new and efficient airport. Internal flights on our trip, on one of the privately owned commercial airlines, were very reliable and comfortable. Bus travel is more fun but less comfortable.

Taxis are plentiful and, although some look a bit dodgy, are generally reliable and quite cheap.

- Internet access

WiFi is beginning to appear around the country and even some small hotels now have a connection. You will also find an increasing number of internet cafes.

- Myanmar or Burma?

Myanmar is the name of the country in the local language. The generals, who took over in a coup d’etat in 1962, changed the country’s official name from Burma to Myanmar in 1989.

As we travelled we asked several locals what they called the country. Some said they call it Burma; others preferred Myanmar as it is more representative of the ethnic mix. There are eight major ethnic races, with Bamar the largest at an estimated 68 per cent of the population.

Overseas, many people use Burma to indicate their opposition to the military regime. The National League for Democracy leader, Aung San Suu Kyi, has not made a call for the official name to be changed back to Burma.

After Myanmar rejected the Asean chair’s call for an urgent meeting on Rohingya while it granted access to the Organisation of Islamic Cooperation and UN agencies, other Asean colleagues were left befuddled – trying to understand the Nayphidaw’s attitude towards them.

During the by-election in April, which brought about the near total victory for National League for Democracy, Myanmar shocked the sock of the Asean friends including the Asean Secretariat by inviting them to dispatch officials to join those from aboard to observe the “free and fair” polls. However, not all Asean members were happy about the move as they did not practice the kind of electoral process that engaged outside observers but they cooperated in the spirit of Asean.

In displaying further anachronistic attitude among the Asean ranks, Nayphidaw has just also lifted the blacklisted names of some 2000 individuals barring entry into the country for decades and earlier it ended media censorship law as a show of the country’s readiness to open up the democratic space further.

In coming months, new laws related to press freedom, public broadcasting, non-governmental organisations and promotion of rule of law, accountability and transparency would be on the pipe-line.

While the jury is still out, the rapid reform process is under close scrutiny by other Asean friends, especially the so-called CLMV (Cambodia, Laos, Myanmar and Vietnam). So far, the government’s concerted efforts have dual objectives – ending all economic sanctions and decades of international isolation.

The first objective was partially fulfilled during the past several months when the West suspended or lifted partial sanctions pending further progress at home. Further liberalisation and democratic reforms would encourage the complete end of all economic discriminations. Second, after decades of isolation, Myanmar has returned to the embrace of international community, actively participating in myriads of activities. That much was clear. However, when it comes to its once troubled relations with Asean, Nayphidaw has sent mix signals to their colleagues.

For instance, Myanmar has maintained a distance with their Asean colleagues on South China Seas and Rohingya. Nayphidaw adopted a low profile on the controversial maritime disputes. On the human rights and democracy arena, however, it has been the opposite.

Within the Asean context, it has made a great leap forward. Indeed, several conservative Asean members are full of trepidation watching the unfolding events there – trying to figure out the contagion effects on the organisation in the long run. Myanmar’s ongoing media reforms have upgraded the country from the bottom ranks of various international media freedom indexes ahead of over half of Asean members.

After the Phnom Penh incident, as diplomats in the region frequently referred to, questions were frequently asked how reliable is the future rotational chair, especially those from the new members. Asean was unable to issue the joint communique for the first time in its 45-year history.

Myanmar will assume the Asean chair in 2014. For years, the country fought vigorously to earn the rights to host the grouping’s annual meeting. When the country decided to skip the chair in 2005 at the Asean Summit in Vientiane, it was done under the mounting peer pressure coupled with domestic constraints.

Until last November, the Asean leaders were still ambivalent about the 2014 chair that was the reason they chose to “support” the Myanmar’s chair instead of “endorse” in their joint statement in Bali. In addition, the speed of US-Myanmar diplomatic normalisation also caught the grouping by surprise. Indeed, it was not wrong to say Asean was playing the catch-up game.

This anxiety still reigns deep in the Asean psyche. At a summit retreat in April in Phnom Penh, one Asean leader urged President Thein Sein to invite their colleagues to Nayphidaw to observe the country’s progress towards reforms and its readiness to host series of Asean summit meetings in 2014. He felt that all the international limelight on Myanmar lacked the Asean dimension to it. Worse, news headlines of the days credited growing international recognition of Nayphidaw to their military-back government, even the once reviled leader such as Gen Than Shwe, which received some praises after decades of condemnation. However, the Asean chair recently decided to scuttle the plan to have a retreat in Myanmar after some delays, much to the chagrins of officials in Nayphidaw.

It is interesting to note the latent rivalry among the new members between Cambodia and Myanmar, which has intensified after the latter has embarked on democratisation and economic reform process – narratives that Phnom Penh, especially among the Cambodian political elite, used to monopolise following the UN-backed election in 1993.

There were incidents of bluffing between the two countries on the Asean schemes which were highly visible within the Asean circle. On August 10, Foreign Minister Wunna Maung Lwin was taken aback after he received a letter from Cambodian Foreign Minister Hor Namhong calling for a special meeting on Rohingya without prior consultation. He said it was “a total surprise” by the move and quickly turned down the plan within hours after receiving the chair’s invitation. Indonesia and Thailand, which backed the idea, later had to let go. A week later, Asean agreed to issue a joint statement on the situation in Rakhine state without a special meeting.

With different histories and political cultures, Cambodia and Myanmar exhibit their independent thinking and preponderances. Asean remembered well when the two countries were approached by Thailand ahead of the establishment of Asean in August 1967.

King Norodom Sihanouk dismissed Asean’s invitation on grounds of his nation’s well-known “permanent neutrality”, while General Ne Win cited the country’s “strict neutrality” as the main reason. Such deep-rooted values are being felt at present among the Asean members as they have been put on display and with some modifications in the case of Cambodia due to the new regional political landscape.

When Nayphidaw chairs Asean in 468 days, nobody knows whether the Thein Sein government would opt for the same principle with additional new shifts. Beginning July, the country is serving as the coordinating country of US-Asean relations. His government’s stands and comments would be closely monitored. Series of liberal reforms in Myanmar have already rattled both new and as old members, especially those related to human rights protection and democratic promotion. Last November, a national commission on human rights was set up in Myanmar even though it was not yet function properly. More than the officials would like to admit, it has prompted Vietnam to take up a further challenge on human rights by applying for a membership in the UN Human Right Council.

Will Myanmar advocate amendments in the terms of reference (TOR) on Asean human rights practices and standards when it comes under review in 2014 or even go further encouraging Asean to come up with a convention on human rights? When the TOR was drafted in 2009, Myanmar followed hard-lined approach pursued by Laos, Vietnam and Cambodia. At recent meetings in Myanmar on the drafting of Asean Declaration on Human Rights and the consultations with Asean-based civil groups in Kuala Lumpur, the Myanmarese delegation took up much softer approach on rights protection.

So far, despite the readiness of Asean and Asean Secretariat to assist Myanmar in present reform and Roginhya, the officials there have relied more on non-Asean sources. A pattern has emerged – if it has to do with Asean, the government preferred assistance from individual Asean members or without the collective Asean label.

The behaviour points to Myanmar’s growing diplomatic independence in dealing with Asean and the boarder global community. Myanmar stopped the construction of Myitsone Dam in Kachin State after reports negative impacts on environment was another example. In other words, the country is slowly craving its own space within the body politics of Asean and beyond which may or may not coincide with the grouping’s collective interests.

WASHINGTON – Profound disagreements among careful observers and participants on the Myanmar scene are still prevalent on President Thein Sein’s current reforms, including over their significance, extent, and likely longevity.

These include pro and anti-sanctions groups, insiders on both sides of the reform fence, and various interested governments of distinct and distant preferences. Yet on one issue there is virtually unanimous agreement: the institutions of Myanmar lack sufficient capacity and institutions are essential if reforms are to take deep root.

Thein Sein and opposition leader Aung San Suu Kyi, separately or together, are personally necessary for reforms to succeed. But their personalities alone are not sufficient. To implement reforms in any field and to build institutions, the need for training and the development of modern skills in traditional and emerging avenues are self evident. “Training” is the watchword of the day in Myanmar.

Whether one is interested in economic modernization and development, an effective educational system, health services, basic statistical and informational modernity, and even a military that knows both its more sophisticated equipment and its relationship to society, the methodologies of all of the above and more are archaic, limited, or even absent.

Capacity building is now a big part of any governmental aid or non-governmental program in the country. These training programs are longer or shorter in term, based either in-country or abroad, and sponsored by a wide variety of states and private organizations. They are widely viewed as critical for the future of Myanmar and the effectiveness of its inchoate reforms.

There are reasons for concern about whether these programs will deliver. Observers and participants of the Myanmar scene – or those of any other country that is undergoing the process of modernization and development – should be well aware of the history of mis-targeted and poorly executed economic and other forms of assistance.

It’s a well-worn pattern: assistance programs are conceived and planned, activities start, and training is built into the project and program design. Yet what often occurs is a hiatus between the inception of a reform, policy, program, or project, and its effective implementation. People need training everywhere, but even more in relatively isolated states like Myanmar, which is just now emerging from nearly five decades of uninterrupted military rule.

What has caused the lack of capacity in Myanmar? Here we need to be brutally candid. There are disciplines, including such as information technology and modern medicine, that are so new that training would be required for even more developed states. But responsibility for gaps in other basic fields and disciplines needs to be assigned.

Myanmar, previously known as Burma, once had a highly developed educational system, with probably the best university in Southeast Asia some three score years ago. That once proud system has by nearly all measures collapsed.

Former military ruler General Ne Win introduced ideological rigor during the country’s 1962 to 1988 socialist period. Although the state was not as isolated as communist North Korea or Albania, it turned inward to exclude critical thinking and much international contact. The reading of a wide range of international academic literature was forbidden during this closed period.

The later ruling State Law and Order Restoration Council (SLORC) and State Peace and Development Council (SPDC) changed the country’s ideological orientation but continued a rigid set of censorship regulations on both news and general publications and imported books.

The announcement last month that news journals will no longer be subject to pre-publication censorship was greeted widely with optimism, but many of the laws that give precedence to national security over freedom of expression and association are still in place.

Both problems of ideology and censorship were exacerbated by the closure of universities, and even high schools, for extended periods due to military fears of student-led ferment. Teachers were badly paid and to make ends meet had to instruct privately what they were supposed publicly to teach. Corruption was widely evident. So for over half a century the prospect of academic-led progress was effectively diminished, even virtually eliminated.

Since the 1988 uprising and crackdown, however, there have been new sets of causes – and here the responsibility for stasis or decay must be shared. Aside from China and India (after 1993), and a few other states, there was little attempt to train Myanmar’s officials and planners.

The European Union (EU) and United States (US) imposed sanctions and attempted to get other states such as Japan to stop their official assistance. To train apolitical, technocratic Burmese, so critics argued, would be to strengthen a set of unsavory regimes. Such training, even of highly specialized skills for younger, non-political employees of any institution, it was feared would enable the military government to strengthen itself and provide a veneer of legitimacy to an unpleasant regime.

The EU and US instead opted to isolate Myanmar, especially the military, known as the tatmadaw, although one might have thought that training in non-lethal affairs and human rights might have been helpful given the tatmadaw’s critical and central role in Myanmar society.

Some training by foreign organizations did, of course, take place, including programs outside of the country among those who left for ubiquitous political and economic reasons. These were the dissidents who, many of them thought and were encouraged by donors to think, were to return in the vanguard of a new, civilian-led political system following “regime change” – the ultimate goal of the EU and US sanctions regimen. But they were not to contribute to the existing military government.

As a result, apart from low key media training sessions, modern in-country training did not take place. Now the public and private donors and well-wishers of Myanmar’s new reformist incarnation search the state far and wide for those who have modern capacities, or even those who have the basic potential to be trained.

This dilemma was both predictable and predicted. As Thein Sein’s government is anxious for reforms to have an early effect, the ability to build momentum is severely constricted by the past policies of both the Myanmar state and donors of all stripes. These past deleterious policies could adversely affect the reform process as a whole, not only in individual fields.

A lack of positive, quick, and effective reform impacts could sour the whole reform effort – both among the reformers and the populace – with potential dire consequences for the country. If that were to happen, as some believe is possible, EU and US donors should indulge in a good bit of self-criticism, for they were in part responsible for Myanmar’s current lack of capacity.

David I Steinberg is Distinguished Professor of Asian Studies, School of Foreign Service, Georgetown University. His latest volume (with Fan Hongwei) is Modern China-Myanmar Relations: Dilemmas of Mutual Dependence (2012).

OTTAWA and MARIETTA, GA–(Marketwire – September 04, 2012) – Optical networking specialist Optelian is accompanying the Honourable Ed Fast, Canada’s Minister of International Trade and Minister for the Asia-Pacific Gateway on a trade mission to Southeast Asia. In conjunction with this trade mission, Optelian is pleased to announce that Myanmar Post and Telegraph (MPT) is utilizing Optelian’s LightGAIN Dense Wave Division Multiplexing (DWDM) systems for its cellular backhaul and backbone network. MPT is installing a state-of-the-art wireless infrastructure throughout the country with support and installation services from Myanmar World Distribution.

“MPT chose Optelian’s DWDM system for their backhaul network as it is the best fit for their operational requirements,” comments Josephine Su, Director of Myanmar World Distribution. “Their next-generation transport network requires a highly scalable solution with support for Ethernet services. The flexible LightGAIN system architecture, with its integrated Ethernet aggregation functionality and its quality and reliability, addresses the demands of MPT’s network growth and challenging environmental conditions.”

“We are proud to have this opportunity to participate in Myanmar’s telecom infrastructure development and to contribute to its economic development,” says Mike Perry, President of Optelian. “To support rapid growth, smart mobile devices, and high bandwidth applications, we have worked with Myanmar World Distribution to create a scalable design, using state-of-the-art network technologies, to future-proof the MPT network.”

Minister Ed Fast said, “Emerging from decades of isolation, this country is poised to accelerate its economic growth and I’m pleased that Canadian technology will play a role in raising the standard of living of the Burmese people as economic and democratic reforms go hand-in-hand.”

About Optelian Optelian is a trusted global provider of advanced multi-technology optical networking solutions for access, metro, long-haul, campus and data center interconnect applications. Designed and manufactured in North America, Optelian’s LightGAIN system allows network operators to build high-capacity, next-generation, carrier-grade WDM networks. The company is known industry-wide for its exceptional product quality, superior customer support and network design capabilities. Optelian’s research, design and manufacturing operations are based in Ottawa, Canada, with sales, service and marketing located in Marietta, Georgia. For more information, visit www.optelian.com and follow us on Twitter @Optelian.

About Myanmar World Distribution “Myanmar World Distribution Co. (MWD) is one of the forefront leaders in Myanmar’s IT, Telecom and broadcasting industry. MWD represents many of the leading technology suppliers in the rapidly evolving IT and Telecom industry. Being a leading value-added-distributor cum systems integrator, it has offices in Yangon, Mandalay, Naypyidaw and Singapore facilitating customer needs. With over fifteen years of experience in technology and delivering exceptional customer service, MWD is equipped to deliver any solution the market requires in a very short period.

Some of its project include design and implementation of the national wide e-office, design and integration of ISP pops, design and installation of internet data centers, building metropolitan networks with the technology of DWDM and SDH, turnkey backbone network with DWDM and SDH technology, design and installation of digital ready turnkey TV transmission centers, Nation Wide Government Payroll System, used to optimize government spending and provide educational institutions with valuable statistical data, to ensure the greatest efficiency in planning and execution of infrastructure projects.”

Canadian Trade Mission to Southeast Asia The Honorable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway, is on a trade mission to Southeast Asia to further deepen Canada’s trade and investment ties in the fast-growing Asia-Pacific region. The trade mission takes place from August 27 to September 3, 2012, and comprises visits to Vietnam, Thailand, Cambodia and Burma.

For years they were arch-enemies of Myanmar’s oppressive military regime, targeted as much if not by more by military leaders than Aung San Suu Kyi and her National League for Democracy political party.

But these days, members of the “88 Generation” movement — composed of one-time student leaders whose 1988 protests nearly toppled the Myanmar junta — are in fashion in Naypyitaw, where they are increasingly being asked to weigh in on policy and advise government leaders and former military bosses on how to further reform the country.

The rapprochement took a major symbolic step forward in early August, on the eve of the 24th anniversary of the 1988 protests, when Myanmar President Thein Sein sent two of his cabinet ministers to meet with 88 Generation leaders in Mandalay as the activists gathered to commemorate the failed uprising of their youths. The ministers gave the activists a donation of 1 million kyats, or roughly US$1,100.

That gesture came after a series of meetings between 88 Generation leaders–many of whom were recently freed from prison after years behind bars, sometimes in solitary confinement–and top government officials.

In one sit-down earlier this year, 88 Generation leaders met with Aung Min, now a cabinet minister in President Thein Sein’s office who has led the president’s efforts to resolve conflicts with armed minority groups, to discuss ethnic divides.

In July, the activists met Lower House Speaker Shwe Mann, who is considered one of Myanmar’s most powerful figures, in a session 88 Generation leaders said was designed to build mutual trust. On August 7, the activists met again with Aung Min as well as Soe Thein, a former industry minister who is now also attached to the president’s office and considered another rising star in Myanmar politics.

In mid-August, Myanmar’s government said it was including one 88 Generation leader, Ko Ko Gyi, on a 27-member national commission to investigate recent communal violence involving Rohingya Muslims in Western Myanmar, which left at least 83 people dead when tensions intensified in June.

Leaders from the 88 Generation have themselves pushed for a more active public role, offering themselves earlier this year as mediators between Naypyitaw and the Kachin Independence Organisation, which represents ethnic-Kachin residents who are battling government forces for more sovereignty.

In March, the 88 Generation formed an election watchdog network with other civil society groups to monitor the country’s April 1 by-elections; it later released an interim report saying it was satisfied with the elections but listed a number of areas that needed improvement.

When the Western Myanmar violence flared in June, 88 Generation leaders visited the state to observe conditions. Now, its leaders are touring the country this month to meet with recently-released political prisoners.

Analysts say the re-emergence of 88 Generation figures as political players has underscored how Myanmar’s opposition movement runs much deeper and broader than just Ms. Suu Kyi and her National League for Democracy, which has dominated headlines because of Ms. Suu Kyi’s global name recognition. It’s also an indication of how rapidly the country is changing after a new government began launching wide-ranging reforms last year aimed at turning the page on decades of military rule, which has given a wide array of former enemies of the state room to operate and pursue their agendas.

“Within the opposition, the second liners are clearly the 88 Generation leaders. They are the ones who are actually going out to the ground, meeting with people. They are heavily involved in social enterprise activities,” said Bridget Welsh, a professor at Singapore Management University, at a roundtable conference on Myanmar in Kuala Lumpur recently.

Some Yangon residents have said privately they believe Naypyitaw is looking to elevate the status of the 88 Generation in part to counter-balance the widening role of the NLD, which now has several dozen members in parliament, and Ms. Suu Kyi, who at times has appeared to upstage President Thein Sein with high-profile trips to Bangkok and Europe. Opposition groups in Myanmar have a long history of infighting, which in past years made it easier for Myanmar’s previous military regime to divide the groups to keep them marginalized.

Government officials dismiss suggestions that the president is now favoring the 88 Generation group. His supporters say he simply wants to promote national reconciliation for everyone, and has met with all sorts of political groups recently.

“So it is not so strange for his acts to be favorable towards some of those 88 Generation leaders,” said Ko Ko Hlaing, a presidential advisor, in an email. It’s “not only the 88 Generation–the government is trying to reach all stakeholders,” said Mr Ye Htut, deputy minister of the Ministry of Information, in an email.

Leaders from the 88 Generation say they believe President Thein Sein–himself a former military officer–is sincere about trying to improve the country, and that they can keep working with him so long as he continues down the road of reform. They say they have decided to work with the government rather than attacking it because they have already seen numerous positive changes this year, and believe key officials including also Aung Min and Soe Thein appear to be trying to bring about more democracy. They continue to criticize some ministers who they believe aren’t moving fast enough, though, and indicate they don’t believe this will upset Mr. Thein Sein.

The group doesn’t have a formal structure or official president, though government officials and others generally recognize Min Ko Naing–a former protest organizer whose name means “Conqueror of Kings”–as the main leader, and Ko Ko Gyi as the deputy leader. Among the group’s main objectives is to help expand civil society organizations so that local people have more power to influence the way their country is run.

Certainly their latest steps are seen as a big departure from past years, when members such as Min Ko Naing played a part not only in organizing the 1988 rallies but also helped support the so-called Saffron Revolution in 2007, when monk-led protests swept across Yangon before they were brutally suppressed by the military.

Analysts say that it is highly probable the 88 Generation will form its own political party eventually instead of joining the NLD, though it’s not entirely clear yet how the group’s policies would deviate from those of the NLD. Some Myanmar residents and experts have criticized the NLD for lacking concrete policy positions; NLD officials say they are working to promote more rule of law and democratic freedom and are working hard to get up to speed on policy issues after years of persecution by the government.

Ko Ko Gyi says his group hasn’t decided on whether to form a party, though he doesn’t rule out–nor does he rule out someday joining the NLD. “It is one way of our thinking,” he said.

Either way, it’s looking increasingly likely Generation 88 members will play some kind of important role in the country’s next major vote in 2015, which Western governments and investors will be watching closely since it could result in an opposition-led government if the polls are free and fair. Among the key questions will be whether 88 Generation members can get along with the NLD–and keep maintaining favor in Naypyitaw.

“I think they will definitely participate in the elections, but how they do will depend on what happens in the next few years,” said Ms. Welsh in an interview on the sidelines of the recent conference in Kuala Lumpur.

OTTAWA — The federal government is strengthening Canada’s trade and investment ties with Myanmar, while warning that Canadian businesses should have their “eyes wide open” to the ongoing risks in the country that is still struggling to emerge from decades of brutal military rule.

International Trade Minister Ed Fast announced on Monday that Ottawa will be appointing a full-time trade commission in the soon-to-be-opened embassy, and is in talks about a possible foreign investment promotion and protection agreement with Myanmar, formerly called Burma.

“Our decision to open the trade office in Burma signals that Canada stands ready to play a significant role in helping the people of Burma secure a freer, more prosperous future,” Mr. Fast said in a conference call from capital city of Naypyidaw.

As part of the government’s more aggressive Asia strategy, Mr. Fast visited Vietnam, Cambodia, Thailand and Myanmar to strengthen Canadian presence in southeast Asia. On Thursday, Prime Minister Stephen Harper will travel to Vladivostok, Russia, for the annual meeting of the Asia-Pacific Economic Co-operation group.

Mr. Fast was accompanied by executives from nearly 20 companies who are looking to do business in Myanmar, including the Bank of Nova Scotia, Skywave Mobile Communications and Manulife Financial. After meeting with President Thein Sein, several ministers and opposition leader Aung San Suu Kyi, Mr. Fast said any Canadian company looking to do business there needs to approach it with “eyes wide open.”

“The market situation in Burma is still fluid and subject to government policy and regulatory changes,” the minister said. “They are undertaking comprehensive economic reforms here – many of those reforms have not been concluded. That’s why we strongly encourage Canadian companies to exercise great caution and ensure that if they enter this market, they have trusted partners that show the highest level of integrity.”

Myanmar held multi-party elections in April as the ruling military loosened its grip on a nominally civilian government, and Ms. Suu Kyi – who emerged from house arrest in 2010 – led her party to a significant breakthrough by winning seats in parliament. After the election, Mr. Harper lifted blanket sanctions against Myanmar to encourage reforms and in July, announced Canada would open an embassy in the capital.

“While there is still a long way to go, I was encouraged by what I’ve seen here and by the steps the Burmese government has taken to move to democracy and to the recognition of basic human rights,” Mr. Fast said. The Myanmar government recently released its grip on the press, ending the requirement of newspapers to submit articles for prior approval and allowing opposition politicians to be figured prominently in coverage.

As part of its Asian Pacific strategy, the Harper government is looking to strengthen its ties with the countries of the Association of Southeast Asian Nations .

Mr. Fast said the developing countries are desperate to build out their information and telecommunications sectors, their financial industries, and their educational systems, all areas where Canada has a business advantage.

But several of the countries are also noted for their religious persecution. Islamic communities in Myanmar are facing persecution from the Buddhist majority, while Christians are targeted in Vietnam. Mr. Fast said Canada will encourage respect for human rights even as it builds commercial relations with the Asian countries.

“We’ve made it clear that as we engage in trade and investment relationships around the world that we also expect our partners to respect basic human rights, respect democratic processes,” he said.

Myanmar takes more steps toward press freedom

Myanmar’s new information minister may allow private daily newspapers in the coming months, the government said on Monday, marking the boldest media reform yet and meeting a central demand of advocates for press freedom.

The quasi-civilian government of President Thein Sein has liberalized media regulations since taking over from a military junta in March of 2011, abolishing direct censorship last month, but private groups are still not allowed to publish daily newspapers.

Information Minister Aung Kyi – who took over from a hard-liner in a cabinet reshuffle last week – wants to introduce a new media law soon and set up a press council acceptable to all, deputy information minister Ye Htut said.

“Our minister would like to see private dailies early next year,” he told Reuters.

There are about 200 private weeklies and four state-owned dailies in Myanmar. The one English-language daily and two others are run by the Ministry of Information, the fourth by the Ministry of Defence. All carry much the same propaganda-laced content.

The change follows a decision on Aug. 20 to end direct media censorship. Journalists no longer have to submit reports to state censors before publication, ending a practice strictly enforced during nearly half a century of military rule that ended in March last year.

Changes have gathered steam since June last year when the Ministry of Information decided to allow about half of Myanmar’s privately run weekly journals and monthly magazines to publish without submitting page proofs to a censorship board in advance.

Over the past year, Myanmar has introduced the most sweeping reforms in the former British colony since a 1962 military coup.

Newspapers have been testing the boundaries, often putting opposition leader Aung San Suu Kyi on front pages and giving coverage to government critics. Editors say this was unthinkable before the middle of last year.

BOTTOM LINE: Despite difficulties, Malaysia needs to boost Myanmar investments

More than 50 years ago, Rangoon (renamed Yangon) was one of Asia’s major commercial centres. Since then, Myanmar’s social and economic growth has “paused”. But recently the country has been gradually embracing reform based on the State Peace and Development Council’s seven-step “road map to democracy”.

The west, particularly the United States, European Union, Australia and Norway are now reconnecting with Myanmar. Apart from cheap unskilled labour and rich natural resources, is the country really an attractive investment destination?

When the clock stopped ticking under military rule, millions of dissidents, including skilled workers, left Myanmar. Since then, most of the diaspora has acquired more in education, skill sets, training and experience than those who stayed behind.

A pool of skilled workers is key to developing an economy when existing labour markets are not providing adequate supply of workers with the right qualifications and experience. This issue is also connected to the low quality of education and vocational training in the country.

Alternatively, companies could also employ foreign skilled workers. Companies are offering good compensation schemes, including hardship allowance and other rewards, in order to attract skilled employees to work in a less modern environment such as Myanmar.

According to Myanmar’s Directorate of Investment and Company Administration, the country received more than US$40 billion in foreign direct investment since 1989 — of which 88 per cent is in the power, oil and gas and mining sectors. These sectors, including the manufacturing sector, require a good talent pool.

Perhaps the apt response is to woo back Myanmar’s skilled diaspora. In May, President Thein Sein made his second appeal to this group to return and support the country’s reform agenda.

So far, not many of them have returned due to unclear public policies despite various reform initiatives introduced by the government.

Recently, Myanmar’s new investment law is stuck at the lower house and has been redrafted as it could potentially injure local industry by offering huge investment concessions to foreign investors. The new draft, however, is now criticised for benefiting existing tycoons who have dominated the economy to this very day.

A clear policy direction will definitely yield positive results as it will streamline the priorities and work processes of various stakeholders towards a common goal.

Big multinational corporations such as Coca Cola, General Electric, Suzuki and Toshiba have indicated their interest in investing in Myanmar. Even Malaysian-owned YTL Corporation is interested in building a hotel in Yangon.

Investors want to know the potential risks and viability of each proposed project. Investment protection must also be clearly explained by the government. Ideally, financial packages and advisory services must be readily available as well.

Investors tend to anticipate future policy changes as they inevitably affect the bottom line of the business. However, the true cost of doing business in Myanmar, such as land cost and permit requirements, is not publicly known and data dissemination on investment is relatively restricted.

Due to limited investment information, the role of government-to-government interaction is paramount in connecting investors with the captains of industry and key policymakers. If further enhanced, such a process can provide solutions on specific concerns and issues of investing in the country.

Two visits by Prime Minister Datuk Seri Najib Razak and International Trade and Industry Minister Datuk Seri Mustapa Mohamed earlier this year will strengthen the existing political and economic relationships between the two countries.

Malaysia has recognised Myanmar as an important trading and investment partner by opening a Malaysia External Trade Development Corporation office in Yangon recently.

Existing technical assistance by the Malaysian government could also be intensified further by offering specific technical expertise by Malaysian multinational corporations in areas of oil and gas, construction and banking.

The private sector in Singapore has already been actively engaging with their counterparts in Myanmar. There are private sector recruitment agencies in Singapore that offer not only human resource services but also accounting, financial and advisory services for investors, including Malaysians, all under one roof!

Malaysia was instrumental in Myanmar’s accession into Asean. Petronas started to invest in the country in 1990.

But according to Myanmar’s official statistics, Singapore has invested US$1.8 billion in the country — double that of Malaysia. So the question is, where do we go from here?

Canada will have a full-time trade commissioner and have full trade-related services at its new embassy in Myanmar, International Trade Minister Ed Fast said Monday from the resource-rich southeast Asian nation formerly known as Burma.

Establishing this presence at the soon-to-open embassy in Myanmar will ensure that Canadian business have a dedicated service on the ground to help identify new business opportunities and assess risks, Fast said via teleconference as he wrapped up a week-long trade mission in the region.

The commissioner and related services will also make sure that any local partners in Myanmar are “individuals and companies of the highest ethical standard,” Fast said.

“A deeper Canada-Burma trade relationship will benefit Canadians through the jobs, prosperity and greater selection of reasonably priced goods and services that come from increased trade,” Fast said.

“In turn, our Burmese partners will benefit from the goods, services, expertise and improved standard of living that will come from increased activity in Burma by Canadian businesses.”

Who the trade commissioner will be hasn’t been announced yet, but the government said it will be someone with experience in the region.

Fast’s trade mission also included stops in Vietnam, Thailand and Cambodia. The mission was intended to deepen Canada’s trade and investment ties in Southeast Asia.

In mid-July, Foreign Affairs Minister John Baird announced that Canada would open an embassy in Myanmar.

Myanmar has undergone significant democratic reforms that have seen the ruling military junta loosen its decades-long control of the country. That control had prompted Western nations to impose sanctions in an effort to isolate it on the world stage.

But changes at the top began in 2010, including the arrival of a new president, followed by limited parliamentary elections and the release of opposition leader and Nobel Peace Prize laureate Aung San Suu Kyi from decades of house arrest.

Canada suspended its sanctions against Myanmar in April.

“While there is still a long way to go, I am encouraged by what I have seen here and by the steps the Burmese government has taken,” Fast said Monday.

The recent moves from the federal government come amid an international rush for Myanmar’s natural resources. Foreign companies have sought to cash in on Myanmar’s massive mineral and gem resources, which are valued at billions of dollars, as well as its oil and gas.

The Canadian Trade Commissioner Service, which is already located in more than 150 cities worldwide, helps companies that are looking to export, invest abroad, and attract investment. The Conservative government has opened 15 new trade offices in fast-growing and emerging markets since 2006.

September 4, 2012 by Jim Della-Giacoma

Why violence broke out in Poso, Central Sulawesi in 1998-2001 is a long story recounted in our Indonesia Backgrounder: Jihad in Central Sulawesi. How it was stopped might be worth examining for the benefit of the recently formed 27-member commission set up by Myanmar’s President Thein Sein to investigate recent inter-communal violence in Arakan State.

The fighting in Poso between 1998 and 2001 was part of a broad sweep of conflicts between Muslims and Christians in the Maluku Islands and on the island of Sulawesi that took place after Indonesia itself lifted the lid off more than 30 years of authoritarian rule with the resignation of President Soeharto. In a series of incidents, hundreds were killed and thousands of homes burnt as communities turned on each other with deadly results in inter-communal tensions often made more virulent by the involvement of Muslim Jihadis.

For Poso, a town in Central Sulawesi province, the 2001 Malino Declaration did not end the killing but it was the turning point. There the conflict broke roughly along the lines of indigenous Christians and migrant Muslim communities. Farid Husain, deputy to Jusuf Kalla, then the Coordinating Minister for People’s Welfare and later vice president, started talks with the warring communities on behalf of the Megawati Government in late that year in what was a highly complex environment with ongoing violence. [Kalla and Husain were later key players in the 2005 Helsinki Agreement that ended the insurgency in Aceh, see our report Aceh: A New Chance for Peace.]

After initial consultations with both Muslims and Christians, each community in Poso was invited to send 25 persons who they felt represented them to a series of talks that started in the town of Malino, South Sulawesi. The Indonesian government made a serious effort to get those who were actually in command of militias committing violence or parties to the conflict to the table, but each side chose their envoys differently – Muslims from the top down picked out of town leaders and Christians from the bottom up selected a more grassroots team. After a series of discussions, the final round of talks on 19-20 December 2001 led to the signing of the 10-point “Malino Declaration”.

As an official account recalls, Kalla, who in August met Thein Sein in his capacity as head of the Indonesian Red Cross, read the ten point-agreement before local religious and tribal leaders at the end of the meeting stating that the two sides agreed:

To cease all conflicts and disputes

To abide by due process of law enforcement and support the Government’s efforts to impose sanctions on any wrongdoers

To request the state to take firm and impartial measures against any violators

To maintain the peaceful situation, the two sides reject civil emergency status and interference from outsiders

To respect one another in an attempt to create religious tolerance

That Poso is an integral part of Indonesia’s territory. Therefore, any Indonesians have the right to come and live peacefully in Poso by respecting the local habits and custom.

To reinstate property to their rightful owners

To repatriate refugees to their respective original places

To rehabilitate, along with the Government, the economic assets and infrastructures of the area

To respect all faith followers to implement their respective religious practices and beliefs as stipulated by the Constitution.

Indonesia is not Myanmar. Their histories are very different. A decade ago, the Indonesian Government said it was “distressed” by the violence in Poso “since this kind of communal conflict undermines the very principle of “Unity in Diversity” upon which the Republic is founded”. Its founders with great insight chose a minority language to be its national tongue. Myanmar, on the other hand, has a fraught history with its ethnic minorities and six decades of civil war with ethnic armed groups to show for it. As we’ve argued, even in Burmese, the long road to a lasting peace starts with dominant Barma ethnic group “re-imagining” the country as the multi-ethnic and multi-religious community that it actually is.

A first step in that direction would be to acknowledge that the 1982 citizenship law is a product of what should now be a bygone authoritarian era. The outdated laws of the colonial era and oppressive dictates of the past military regimes should be the first targets of reform for the still new parliament. Defining citizenship by where people lived before the arrival of the British in 1824, as the citizenship law does, is an anachronistic way of looking at the issue. It unnecessarily marginalises one large group of people – the Rohingya — giving them less access to education and making them poorer and therefore less able to contribute to the nation’s transition. It also contravenes Article 15 of the Universal Declaration of Human Rights, according everyone the right to a nationality, and as such is just not the way a modern and aspiring democratic state behaves.

Neither is it the ASEAN way. As Naypyitaw prepares for the 2014 chairmanship of the regional organisation the country’s leadership should engage in a simple counter-factual reflection: What if every member of ASEAN acted by this standard? Resetting citizenship based on where colonialists drew the borders almost two centuries ago would be a demographic disaster that would displace and disenfranchised tens of millions within the boundaries of its ten member states. Other ASEAN members for very pragmatic reasons should be quietly telling their counterparts from Myanmar that we just don’t do things like that anymore.

The rights of citizenship are a key principle that quietly underpins the Malino Declaration. People should be treated first and foremost as Indonesian citizens who are equal under the law rather than a member of any one religious group. Indonesia is not perfect and still struggles with this fundamental idea, especially with its Muslim minorities. Also relations between Muslims and Christians in places like Poso, Ambon, and West Java can still be tense. But the Poso peace process shows some practical steps to finding a way out of the death and destruction fomented by inter-communal hatred. For example, after it was signed, the declaration was disseminated by both sides at the grass roots level as well as by local officials and the military. Two joint commissions were set up to deal with law and order as well as addressing inequalities in social and economic conditions. The government then provided $10m for resettlement and reconstruction.

Malino is neither a model, roadmap, nor off-the-shelf-solution for Myanmar, but remembering the declaration and the process behind it is instructive as it should allow us to start imagining a way out of tensions in Rakhine State.

YANGON–Myanmar’s new information minister may allow private daily newspapers in coming months, the government said on Sept. 3, marking the boldest media reform yet and meeting a central demand of advocates for press freedom.

The quasi-civilian government of President Thein Sein has liberalized media regulations since taking over from a military junta in March 2011, abolishing direct censorship last month, but private groups are still not allowed to publish daily newspapers.

Information Minister Aung Kyi–who took over from a hardliner in a cabinet reshuffle last week–wants to introduce a new media law soon and set up a press council acceptable to all, said Deputy Information Minister Ye Htut.

“Our minister would like to see private dailies early next year,” he told Reuters.

“For the emergence of private dailies, there are two prerequisites–a Media Law acceptable to all and a Press Council representing the journalists. So we are now looking for ways and means so that private dailies can emerge early next year.”

There are about 200 private weeklies and four state-owned dailies in Myanmar. The one English-language daily and two others are run by the Ministry of Information, the fourth by the Ministry of Defense. All carry much the same propaganda-laced content.

Thein Myint, managing editor of Eleven Media, a private publishing house, said licenses should be scrapped altogether.

“We do welcome the remarks by the new minister but we think there should not be any license for dailies. It should be free registration. Nobody should be granted special privileges. The competition among the private dailies should be completely free and fair,” he said.

The change follows a decision on Aug. 20 to end direct media censorship. Journalists no longer have to submit reports to state censors before publication, ending a practice strictly enforced during nearly half a century of military rule that ended in March last year.

Changes have gathered steam since June last year when the Ministry of Information decided to allow about half of Myanmar’s privately run weekly journals and monthly magazines to publish without submitting page proofs to a censorship board in advance.

Over the past year, Myanmar, also known as Burma, has introduced the most sweeping reforms in the former British colony since a 1962 military coup. A government, stacked with former generals, has allowed elections, eased rules on protests and freed dissidents among other changes.

Newspapers have since been testing the boundaries, often putting opposition leader Aung San Suu Kyi on front pages and giving coverage to government critics. Editors say this was unthinkable before the middle of last year.

I. HIGHLIGHTS/KEY PRIORITIES

• The Rakhine State Government estimates that over 70,000 IDPs are accommodated in 50 camps and temporary locations in Sittwe, Kyauktaw and Maungdaw Townships as of 31 August.

• Following an inter-agency assessment to villages in Kyauktaw affected by inter-communal violence in early August, assistance in the form of food, NFIs and health care has been provided to over 3,800 people.

II. Situation Overview

The Rakhine State Government estimates that over 70,000 internally displaced persons (IDPs) are accommodated in 50 camps and temporary locations in Sittwe, Kyauktaw and Maungdaw Townships as of 31 August. The number of IDP camps in Sittwe is continuously reducing, as the Government is consolidating the IDP locations into 15 main relocation camps in Sittwe. Population movements continue to be reported. Over 4,000 people who had arrived at Thet Kel Pyin camp from Than Daw Li village in order to gain access to aid, are now reportedly gradually moving back to their village. Some 30 families have arrived in the village at the end of August.

Although the security situation has overall been calm over recent weeks, inter-communal tension remains very high. On 11 August, the Government reviewed the security situation across the state and changed the curfew hours from 6pm until 6am to 7pm until 5am in seven townships, including in Kyauktaw due to recent violence. The Government released nine out of 14 UN/INGO staff that had been held in detention following the recent unrest in Rakhine State.

On 17 August, the Government formed a 27-member investigation commission, which comprises former Government officials, religious leaders, representatives from political parties and entrepreneurs, to identify the causes of the recent violence as well as to give recommendations. The commission is also tasked to submit proposals for ending the conflict as well as to make suggestions for peaceful coexistence between communities. On 21 August, the Minister of Border Affairs held a meeting in Nay Pyi Taw with the members of the newly-established investigation commission during which the Minister gave an update on the situation in Rakhine and urged the commission to conduct assessments in the affected locations and make recommendations for a solution.

Safety and security of humanitarian workers continue to be concern, as several provocative statements had been made in the past against UN and NGOs, fuelling tensions and hampering assessments and delivery of relief support to the victims of the violence. The Government and the humanitarian community under the leadership of the Resident and Humanitarian Coordinator (RC/HC) have taken measures to address those issues including through joint visits to both affected communities, dialogue with community leaders and dissemination of information about the cooperation between the Government and humanitarian partners through various channels.

Humanitarian partners remain concerned that access is still limited to some affected areas and townships outside of Sittwe. Challenges also remain regarding the resumption of regular activities which were in place before June 2012 and which have been disrupted.

By Tan Zongyang in Beijing and Guo Anfei in Kunming ( China Daily)

Rescuers from China and Myanmar are still searching for 14 people missing in a boat accident that occurred on Sunday on the Lancang River near Southwest China’s Yunnan province, local officials said.

The Mengla county government said in a statement on Tuesday that 14 people, including eight students from Myanmar, remain missing despite several rounds of searches that are still under way.

A ferry, registered in Myanmar, overturned after leaving port in a village in Myanmar on Sunday at noon and sank into the Lancang River, upstream of the Mekong River.

Twenty-two people were on board, including nine students who took the ferry to attend school in Mengla county, the statement said.

The county’s rescue team said the accident was caused by overloading, according to Xinhua News Agency.

After the accident, Guanlei port in Mengla county sent two ships to search for survivors. So far, eight people have been rescued.

Chen Qizhong, deputy head of Xishuangbanna prefecture, which administers Mengla, urged the local government to spare no effort to help the neighboring country in the rescue work.

Chen also said local water safety authorities should strengthen inspections of passenger and cargo boats to ensure safer transport on the international waterways.

“I have always taken the ferries to school, but this time I was really terrified,” said Jiang Shiqi, a 12-year-old student who survived the accident.

Jiang was the only Chinese citizen among the 22 people on board. He lives with his parents, who work in a rubber tree farm in Myanmar.

Li Yuanxi, a publicity official of the prefecture, said the ferry was owned by Li Bing, 28, who was born in the province’s Lancang county, and immigrated to Myanmar to do business.

The ferryboat owner, who also survived the accident, was now under police control, Li said.

Yan Wenxiang, another ferryboat owner, said there were four boats on the river providing ferry services.

“As there is no bridge, people living in the border area tend to take a ferry to commute for business or school,” he said.

Yan added that the ferries charge 5 yuan (79 cents) for a single trip for adults or motorcycles, but offer free rides to students.

He said a boat can carry about 10 people at one time, but the sunken boat had too many passengers on board.

Steve Finch Rangoon

When PepsiCo decided to leave Burma in 1996, the company’s local partner, Myanmar Golden Star (MGS), hit the jackpot. Forced out due to pressure by campaign groups, the US soft drinks giant left a factory on the outskirts of Rangoon. MGS then bought out Pepsi’s stake, started producing “Star Cola” and proceeded to dominate the country’s fizzy drinks market.

Now, after the West started to ease sanctions in response to recent democratic reforms by the purportedly civilian regime headed by President Thein Sein, Pepsi is back in Burma with a different local partner.

“It doesn’t really matter to us,” said Oo Tun, managing director of MGS and the son of the company’s founder, Thein Tun. Star Cola is not in a unique position. Copycat brands, fakes and grey imports are everywhere in Burma and as globalisation suddenly confronts the nation, a large question mark hangs over the fate of many of these local products. In the years past, where McDonald’s and KFC were barred by US sanctions, Mac Burger – with its red arches on a golden background – and Tokyo Fried Chicken for many years filled the fast-food vacuum in Rangoon.

But their more illustrious American rivals could soon be offering stiff competition. Following the visit of a sizeable delegation of US firms to Rangoon over the summer, the first in decades, a spokesman for the US regional business council said American fast-food chains were keen to enter Burma.

But as they eye new opportunities, Western brands must contend with the challenges posed by fakes. On the country’s periphery, piracy is the key problem facing foreign firms. Fake Marlboro Lights packed with rough-cut Burmese tobacco, for example, sell for about £1 a pack in Tachilek on Burma’s border with Thailand.

Pirated goods flood across the Chinese frontier further north, which in turn has made Burma a transit country for counterfeits bound for India, South-east Asia and beyond. Following recent Chinese crackdowns on pirated CDs and DVDs, many producers relocated to Burma’s porous border areas like Mong La, a fiefdom in the “Golden Triangle” run by a former drug lord, according to the UN Office of Drugs and Crime.

Further south, in the cities of Mandalay and Rangoon, getting hold of a genuine copy of the latest album or film release remains almost impossible amid the flood of pirated discs. But the end of sanctions has prompted Western multinationals to fight back and reclaim their brands.

When 20th Century Fox officially released the 2012 3D edition of James Cameron’s 1997 blockbuster Titanic in Rangoon last month – the first legal screening of a Hollywood hit in a generation – a company executive reportedly cited “protecting our intellectual property” as a key reason to return.

Despite recent reforms, the prevailing trademark and copyright norms date back to the days when Burma was part of the British empire, said Khine Khine Oo, the owner of a legal practice in Rangoon which specialises in intellectual property rights. “The law is very, very old – we need a new law,” she said. Burma’s new parliament is tipped to pass new intellectual property legislation by the middle of next year, she added.

In the meantime, companies continue to issue a flurry of trademark cautions in the local press, the only way they can protect their brands in Burma. Recently, lawyers working on behalf of Marriott Hotels, healthcare products firm Johnson & Johnson and American cable broadcaster HBO have all issued such notices in the state-run daily New Light of Myanmar.

Although the intellectual property legislation is expected to protect international brands, there are rising fears that a new foreign investment law may restrict foreign firms, said Sean Turnell, a researcher on the Burmese economy based at Sydney’s Macquarie University.

Originally scheduled to pass in April, the draft law has been held up half a dozen times for revisions in the past few months after Burma’s private sector complained that foreign firms were getting too good a deal. Tax breaks for overseas companies are expected to extend up to five years, according to the latest draft. “Certainly the momentum of late has been in the direction of increasing protectionism,” said Mr Turnell, who has been tracking revisions to the foreign investment bill.

This is especially true of the retail and food processing industries, he added. “What’s a bit worrying is that some of the sectors would seem to include those within which foreign investment could deliver the most benefit, especially with respect to expanded choices for consumers.”

Burma brands: Dominating the market

Star Cola

The brainchild of tycoon Thein Tun, Burma’s leading cola brand was born when the American soft drinks giant Pepsi exited the military-run nation under pressure from campaign groups in the 1990s.

J’Donuts

Featuring hot pink and bright orange signage familiar to fans of the better-known American equivalent Dunkin’ Donuts, this chain has seen impressive expansion under the ownership of the son of former junta strongman Than Shwe.

Red Ruby

Attractive red-and-white packaging and a low price of about 50p a pack has made these Burmese cigarettes a money-spinner for the army-run holdings company, which holds a stake in the brand.

McVeggies for indian holy sites

It’s an obvious problem – selling hamburgers in a place where cows are sacred. But now even pilgrims to two holy sites in India can indulge their bad habits with a McDonald’s meal after the fast food chain said it plans to open vegetarian outlets in the religious centres. Ever keen to tap growing markets, it plans to open restaurants in Katra, the town closest to the Hindu mountain shrine of Vaishno Devi, and in Amritsar, where Sikhs flock to their holiest site, the Golden Temple. The McVeggie – a patty of carrots, peas and potato – is the chain’s top-selling product in India.

Of the reforms that the government of Burma has initiated over the past few months, few are as important to the country’s future as the two that Burma’s leadership began to address most recently: freedom of the press and freedom of movement.

In mid August, the Burmese Information Ministry eliminated some of the most egregious censorship requirements. No longer will editors need to submit drafts of hard news stories for government approval prior to publication, a requirement that was dropped last year for publications dealing with entertainment, sports, technology, health and children’s issues. Indeed, since last June, the Burmese government has eased censorship on crime and business reporting, unblocked a number of banned websites, including the Voice of America, and allowed entry to foreign journalists.

In late August, the Burmese government began removing names from an immigration blacklist that blocked dissidents and some journalists from entering the country. The Burmese government stated that the list had been compiled “in the national interest.” But now, in accord with ongoing reforms, the list has been shortened.

Lifting the ban is indeed very much in Burma’s national interest. Many of those whose names appeared on that list are people who comprise the country’s conscience: those who raise their voices to point out shortcomings that prevent society from flourishing, that hinder the market from expanding, that blind the government to the need for change. Freedom of speech allows for constructive debate while freedom of the press spreads the ideas behind the debate and helps people understand the situation and contribute their own ideas.

Neither speech nor the press are yet free in Burma. Over 4,000 names remain on the blacklist. Critics and journalists must yet walk softly and weigh their words lest they violate any number of restrictions still in force, including a ban on criticism of the Burmese government. There are no private daily newspapers in Burma, the government controls them all. There is a dearth of journalists and little infrastructure necessary to support an independent, nationwide media network.

But while much still needs to be done, Burma has firmly taken the first steps toward a more open society. The United States congratulates Burma on the advances it has already made toward a bright, prosperous future.

Trade ministers of Cambodia, Laos, Myanmar, Thailand and Vietnam will sign an agreement later this year to establish a regional rice association, a Thai official told the Bangkok Post on August 23.

The agreement will aim to boost rice prices by 10 percent per year and will be the first cooperation relating to rice prices in Southeast Asia, a region that exports 20 million tons of rice every year, Thailand’s permanent secretary of Ministry of Commerce Yanyong Phuangrach said.

The 10 percent increase in rice prices each year is acceptable and will not cause major effects on customers, he said, adding that it was agreed upon among the five countries that boosting rice prices would be reasonable since rice is the main source of revenue for them.

After the association is formed, export prices of Thailand’s white premium rice will increase 9 percent from around US$600 per ton to $660 per ton, the secretary predicted.

However, Chairman of Thailand Rice Exporter Association Korbsook Lamsuri said she feared that raising prices could create conflict with other countries in the region who import rice such as Indonesia and the Philippines.

At the moment, the export price of 5 percent broken rice from Thailand is 21 percent higher than that of Vietnam, which is $550 per ton, according to the information of Gentraco JSC, a Vietnamese rice export company.

By SAW YAN NAING / THE IRRAWADDY| September 4, 2012 |

The Karen National Union (KNU) and government peace negotiators signed the second draft of a troop “code of conduct” after two-day peace talks concluded in the Karen State capital Pa-an on Tuesday.

“We both have negotiated and agreed for a code of conduct in principle and signed it. It is the second draft as we negotiated and amend it during discussions,” said Naw May Oo Mutraw, the spokesperson of the KNU.

The code of conduct will now be submitted to President Thein Sein for approval. It will be reviewed by his office and then finalized by the KNU and Naypyidaw peace delegation in the next round of negotiations, she added.

The government delegation also agreed in principle for the repositioning of its frontline troops. However, the military relocation sites proposed by the ethnic rebels first have to be reviewed by Vice-Snr-Gen Min Aung Hlaing, the commander-in-chief of the Burmese armed forces.

The KNU and Naypyidaw representatives agreed to hold further talks over the government’s troop relocation and withdrawal from areas of Karen State populated by Karen communities, said peace broker Hla Maung Shwe, who was at the Pa-an meeting as part of the government delegation.

Both sides discussed five subjects including the code of conduct which government and rebel troops must obey in order to cement a permanent ceasefire. The code of conduct was made up of 11 chapters and 34 detailed points—including safety for civilians.

KNU General-Secretary Zipporah Sein signed the agreement on behalf of the KNU while Aung Min, the chief of the Naypyidaw peace team, signed for the government side, said Hla Maung Shwe. He revealed that the old adversaries also agreed to hold further peace talks before the end of the year and to continue towards a political dialogue.

David Takapaw, the vice-president of the KNU, said that he will be amongst top ethnic leaders when a political dialogue is finally arranged. He also said that the discussion will be held under the stewardship of the United Nationalities Federal Council ethnic alliance group.

The KNU and Naypyidaw delegation will take more time to discuss the relocation and withdrawal of government troops, said Hla Maung Shwe. Aung Min told the meeting on Tuesday that the KNU is the most disciplined among ethnic armies, adding that the code of conduct was a positive development and peace talks were successful.

Aung Min reportedly said that the KNU has a clear position and was more principled than the other ethnic groups. To guarantee safety for civilians, the rebels urged the government to withdraw its troops from villages abandoned by Karen villagers.

This week saw the third round of peace talks since the signing of an initial ceasefire on Jan. 12. The KNU is one of Burma’s most important ethnic armed groups and has been fighting against central government rule for 63 years.

By WILLIAM BOOT / THE IRRAWADDY| September 4, 2012 |

Big names in the international oil and gas industry rubbed shoulders in the Sedona Hotel in Rangoon on Monday as Burma’s Ministry of Energy seeks to lure investment in offshore and onshore exploration.

It is expected that Energy Minister Than Htay will announce a bidding process for a dozen or more exploration licenses to whet the appetites of the likes of Royal Dutch Shell, ConocoPhillips, Chevron’s Unocal, China National Offshore Oil Corporation (CNOOC), Nippon of Japan and Essar Oil of India.

These multinational companies figure prominently among scores of industry representatives booked to take part in the four-day forum running until Sept. 6.

It is the second such promotional gathering this year. The first, in March, drew a muted response from Western firms, and half of the 18 offered onshore development blocks failed to find takers. But this second forum looks potentially more promising for Burma, with several multinationals actively participating.

The giant Dutch-British group Shell will give a seminar on Burma’s potential for offshore deep water oil and gas exploration, while ConocoPhillips of the United States will talk about onshore prospects.

Unocal, which is part of the US’s Chevron Corporation, and the Chinese state oil giant CNOOC are sponsoring lunches at the Sedona during the four days.

The Singapore-based Center for Management Technology (CMT)—co-organizers of the event—said details of new deep and shallow-water block licenses plus more new onshore licenses will be unveiled by the state-owned Myanmar Oil & Gas Enterprise (MOGE).

It is not yet clear how many new blocks will be offered, but according to one hydrocarbons map there are at least 26 offshore blocks not yet licensed for exploration.

The forum, officially labeled the 2nd Myanmar Oil, Gas and Power Summit, will also seek to attract interest from foreign companies in investing in Burma’s dilapidated and inadequate electricity generating and distribution sector.

“[The conference] aims to bridge the connection between potential foreign investors and local companies to tap into the potential in the booming oil, gas and power sectors,” said CMT. Workshops during the four days will be “focusing on joint ventures, project financing and the geological outlook,” it said.

In addition to hydrocarbons exploration and development, the Ministry of Energy said it is also looking for foreign investment in commensurate infrastructure such as ports, pipelines and offshore rig platform marine support services which barely exist in Burma.

Discussions are also planned at the forum on investment in hydropower dam projects and potential power plants to be fuelled by natural gas and coal.

Burma has less than 10 percent of the electricity generating capacity of its neighbor Thailand with a similar-sized population.

“I think we will soon see some inward movements by some of the Western oil super-majors, in particular there will be keen interest in securing deep-water offshore blocks along Burma’s central coast,” Bangkok energy industries analyst Collin Reynolds told The Irrawaddy on Friday.

“I suspect that what will happen is bids will be made, and accepted for blocks, and then there might be an actual lull in any activity until there is greater clarification on the new foreign investment law currently going through Burma’s political system. I doubt if any company is going to pour money blind into a venture with knowing the full legal consequences.”

Under new rules already in place, all new oil and gas exploration and production ventures by foreign firms must include a local company. This is similar to the rules of engagement in other Southeast Asian countries.

In Malaysia, Indonesia and Vietnam, and to a less extent in Thailand, the state-owned oil company always takes a stake in foreign ventures. There are other problems for would-be investors—the tainted, junta-linked MOGE remains at the heart of the sector.

Just last week a risk assessment company underlined the perils of associating with MOGE, which had been blackballed by the US government for its close links with the military junta.

MOGE continues to be central to all agreements in the oil and gas industry, even if it has virtually no capability of carrying out oil and gas exploratory work, unlike state-controlled Petronas of Malaysia, PetroVietnam or Indonesia’s Pertamina.

In a speech to the International Labor Organisation in Geneva in June, opposition leader Aung San Suu Kyi urged foreign companies to boycott MOGE until it was reformed and gave an account of its murky past. However, Washington has since watered down its attitude by merely requiring US firms to report if they work with the Burmese agency.

But by dealing with MOGE, foreign investors will be exposed to “a whole spectrum of risks, ranging from poor labor, environmental and safety standards to corruption, forced labor and other human rights violations,” risk assessor Maplecroft said.

“A strong network of strong cartels with vested interests in fuel import and distribution and close ties to the military elite also present very high barriers to entering the downstream business,” said Maplecroft.

The UK firm also noted that Burma’s inadequate infrastructure and administrative skills are “considerably slowing the introduction of reformist policies and implementation of regulations.”

“In the short term, the biggest concern for anyone considering investing in [Burma] is the government’s dependency on foreign expertise to manage administration, infrastructure and energy and finance projects,” it commented.

Participating in the forum does not come cheap. Foreign delegates are each being charged fees ranging from US $2,395 to $3,395, depending on the number of workshop sessions they attend.

Domestic firms will pay much less to participate, and by the end of this week some could well be much better off from the partnerships they hope to forge.

By NYEIN NYEIN / THE IRRAWADDY| September 4, 2012 |

Burma’s parliament on Tuesday approved the formation of four new ministries within the President’s Office while at the same time voting to close the Ministry of Myanmar Industrial Development, and amalgamate the Ministries of Electricity 1 and 2 into one office.

Speaking to The Irrawaddy after Tuesday’s parliamentary session, Upper House MP Phone Myint Aung from the New National Democracy Party said that the Ministry of the President’s Office is to be expanded from two ministries to six. Four new ministers—Aung Min, Soe Thein, Hla Htun and Tin Naing Thein—were duly appointed last week.

President Thein Sein told Parliament that the four additional ministries would improve efficiency to the ongoing peace processes, as well as in the President’s Office as it moves to approve a foreign direct investment law, and to prepare for Burma’s role as host of the Southeast Asian Games in 2013 and as chair of Asean in 2014.

Nine of the 36 ministers’ posts are still to be filled, though the names of potential candidates have now been put forward. The names of eight deputy ministers have been suggested for promotion, alongside a member of the Civil Service Board and the regional chief of Northern Command Gen. Zay Yar Aung. The vacant posts are at the ministries of construction, social welfare and relocation, culture, finance and revenue, labor, tourism, railways, and technology.

All the appointments should be officially announced before the end of this parliamentary session, which is scheduled to conclude on Friday, said MPs.

According to Phone Myint Aung, Tuesday’s session saw the confirmation of more than 50 of the 72 deputy ministers—each of the now 36 ministries boasting two deputies.

In his ongoing Cabinet reshuffle, President Thein Sein proposed to the Parliament two more appointments: one for a new auditor-general; and one as Minister of Defense.

In a presidential letter to the Union Parliament, Thein Sein proposed former Minister of Mining Thein Htike to replace outgoing Auditor-General Lun Maung who resigned from the post last week; and he proposed Lt-Gen Wai Lwin to replace Defense Minister Lt-Gen Hla Min. Wai Lwin was appointed to the Rangoon Regional Parliament just last month.

The president’s recommendations are to be debated among MPs in Friday’s session.

Several MPs told The Irrawaddy that the initial reaction among MPs was negative toward Thein Htike due to the notorious corruption within the Ministry of Mining. Phone Myint Aung said that those who oppose the proposal can air their views on Friday in accordance with the law.

A reshuffling of the Cabinet has been ongoing since last Monday when nine new ministers and 19 new deputy ministers were appointed.

Any solution to the standoff between the Burmese Parliament and the Constitutional Tribunal must be settled in a manner fair to both sides, opposition leader Aung San Suu Kyi said this week.

Both sides should seek a “far-sighted, agreeable” solution to the dispute, which concerns the tribunal’s March 28 ruling that parliamentary committees are not union-level bodies.

“When resolving a problem, we need to take into account whether the way we are resolving it corresponds with democratic standards,” she said, according to an article in the Myanmar Times on Tuesday.

“If the way is correct, then the reputation of our country will be enhanced and the people will respectfully accept the outcome of it … both sides need to be satisfied that it has been settled according to the law. Both sides need to respect each other.”

She told lawmakers, “You should not accuse the other side of being wrong just because they have a different view from you. We should respect and try to understand each other’s view,” she said.

“Countries where democracy is being practiced have to work to balance the executive pillar, legislative pillar and judicial pillar.”

She said it is common for debates to arise about important issues.

“Similarly, it is not uncommon that there are controversies over a constitution … but what is really important is to work out how we deal with it,” she said.

San Suu Kyi made her comments during a discussion of a proposal that “the Pyidaungsu Hluttaw should urge the constitutional tribunal to declare that its ruling was wrong.”

Twenty-six representatives discussed the proposal, with 13 civilian MPs declaring their support for it and three Tatmadaw representatives opposing it.

The motion was approved 447 votes to 168, with four abstentions.

Tuesday, 04 September 2012 13:04 Phanida

Chiang Mai (Mizzima) – The Burmese government has increased its military presence in Hpakant Township in Kachin State, and residents are worried that serious fighting will soon break out again.

Tens of thousands of Kachin refugees have fled the fighting between the Kachin Independence Army and government forces. Photo: HRW

Tens of thousands of Kachin refugees have fled the fighting between the Kachin Independence Army and government forces. Photo: HRW

Since August 1, the Burmese government has deployed soldiers in civilian clothes via the Myitkyina-Hpakant route, and 50 to 200 soldiers have been stationed in every Burmese base in the area, a Kachin Independence Army (KIA) military source said.

In addition, at least 200 soldiers armed with heavy weapons were deployed by helicopters on August 2. In response, KIA soldiers have been stationed along the Hpakant-Lauhkaung Road in upper Mogaung Township and are on alert, said a KIA source.

On August 29, dozens of Burmese soldiers were killed when a fuel warehouse of the Wai Aung Gabar Company exploded when hit by a mortar shell during fighting, the KIA said. The figure could not be confirmed.

Meanwhile, many residents from Hpakant have fled to Myitkyina and Mogaung because they are worried that fighting will intensify.

Last week, 886 war refugees took refuge at a church of the Kachin Baptist association.

“Residents cannot go to the jade mines to work,” said Tu Ja, a church worker. “It will be difficult to move from our church when there is heavy rain. Now, flooding has not hit. Despite the rain, the water level subsided.”

National League for Democracy [NLD] official Khin Maung Chin told Mizzima, “We heard the military presence has been increased. People from the town’s jade mines are worried, and they moved to camps in the town.”

Around 12,000 war refugees have taken refuge in 34 refugee camps in Hpakant, according to the NLD.

Khin Maung Chin said the NLD and social organizations had jointly donated more than 38 million kyat and basic food including rice, cooking oil and salt.

Meanwhile, some purified drinking water companies including Lucky Star have donated water to the refugees. A township doctor has organized healthcare service groups that visit the camps every day to provide basic services.

Buses run from Hpakant to Myitkyina as usual, but only a few buses run from Myitkyina to Hpakant because there are many security checks, said Khin Maung Chin.

Last week, the Kachin State government donated five million kyat for war refugees, and the Kachin Baptist Association received more than 300,000 kyat.

The Buddha Gawpaka Group, the NLD and the Mandalay Kyaw Wine group have also donated to the refugees.

Tuesday, 04 September 2012 13:35 Hnin Pwint

An Arakanese (Rakhine) public company is being formed with starting capital of 500 million kyat (US$ 573,723) from an initial investment by 50 shareholders, Than Maung, a shareholder, said in a meeting at the Arakan (Rakhine) Religious Hall in Rangoon on Sunday.

In early 2012, the plan to start up the Arakanese public company was advertised in newspapers, but because of riots that began in Arakan State in early June, meetings to form the company were postponed, said Than Maung. The Sunday meeting was the first step to establish the company.

“We hope that we can officially register the company within this year, but it may take until the next year. Today, we explained [the company] to the shareholders and the public,” said Than Maung. More shareholder meetings will be held, he said.

The aim to form the public company is for the regional development of Arakan State, said Kyu Kyu Win.

According to current regulations for registering a public company, the number of directors must be at least seven and every company must renew its license every three years.

The company’s agent, Kyu Kyu Win, said each of the shareholders has invested 10 million kyat per person as starting capital.

”The 50 initial shareholders will choose a managing director from the shareholders,” he said.

Shwe Thein Kyaw, a shareholder who attended the meeting, said, “Our planned public company is not only for financial profits but also for improving various poor sectors such as the social, economic, education and road communication sectors of our Arakan State.”

As international energy giants flock to Rangoon for the 2nd Myanmar Oil, Gas and Power road show this week, western and Asian operators are scoping out investment opportunities in Southeast Asia’s final frontier market.

After western governments eased sanctions targeting the country, Burma’s oil and gas industry has seen increased attention from American and European multinationals that are eager to secure a piece of the action.

“Many multinational petroleum companies including Shell, BP, BG ConocoPhillips, Chevron and many others have shown great enthusiasm to invest and keen interest to conduct upstream petroleum exploration in Myanmar [Burma]’s petroleum sector,” union minister Than Htay told a crowd of more than 300 attendants at the MOGP conference today.

Despite these international energy giants knocking on its door, the Burmese government has yet to release dates for the much-anticipated international tender, although industry insiders said it could be announced later this month.

“The blocks for this bidding round are under consideration and assessment and hope to be finalised in due course,” said Than Htay.

The Ministry of Energy said 29 lucrative offshore blocks will be offered alongside 34 onshore blocks in the next bidding round, and Burma’s untapped offshore and deep water oil and gas reserves are tipped as being certain to lure in big name western energy firms.

“US firms are interested in offshore, not onshore,” said Ken Tun, CEO and president of local firm Parami Energy, which has a 22 percent stake in an onshore block alongside Indian operator Jubilant.

“These guys want to play big and the big games are all offshore,” he said.

Edwin Vanderbruggen, a partner in specialised advisory firm VDB Loi, said western energy companies were ramping up their interest in post-sanction Burma.

“They’re looking at the opportunities with interest, gathering information and doing feasibility studies,” said Vanderbruggen. “For many of them, this is the first time they’ve actually studied a Myanmar deal, so there is a learning curve.

“Whether this interest will translate into actual deals by the biggest players does not only depend on Myanmar itself, but also on the opportunities and returns the investors have elsewhere,” said

Vanderbruggen.

Representatives from Dutch-British multinational Shell are in negotiations with the Burmese government for at least one offshore block, said an industry insider, although the company declined to confirm these reports.

Chevron, Exxon Mobil and Conoco Phillips were part of a delegation of about 40 US firms that visited Burma in July and are tipped to be the next big players in the country’s oil and gas scene, said Nopporn Wongsatitporn, associate director of gas and power at leading strategic and financial advisory services firm AWR Lloyd.

However, Wongsatitporn said stringent reporting requirements and compliance issues imposed by their home government mean incoming US firms would need to watch their step so not to fall foul of American sanctions.

“As an energy expert, the major challenge faced by western oil companies investing in Myanmar is identifying an experienced local partner free of ties to officials blacklisted in the US,” he said.

All foreign firms investing in the oil and gas sector are required to take on a local partner and enter into a production sharing contract and partnership with the government entity MOGE which oversees licencing and holds a majority stake in all onshore and offshore blocks.

But while western energy companies are expected to make their presence felt, they won’t be tipping the balance against eastern firms just yet, said Jared Bissinger, a PhD student from Australia’s Macquarie University who is studying Burma’s economy.

“Myanmar’s oil and gas sector has many more firms from Asia than the west, and it will stay that way for quite a while,” said Bissinger.

“Part of the reason for this is simply geography – Myanmar’s location, comparatively far from the west makes it more economical to export oil and gas to Asian countries. Remaining sanctions, like the import ban, play a role too, as does the SDN [Specially Designated Nationals] list,” said Bissinger.

Asian players including Korea’s Daewoo, Thailand’s PTT EP, Malaysia’s Petronas and Chinese firms SINOPEC and CNOOC currently dominate the resource-rich country’s oil and gas scene.

French multinational Total is leading the push to boost western presence in Burma’s lucrative oil and gas industry after announcing plans on Monday to team up with Thai operator PTT’s Exploration and Production arm (PTT EP) to explore an offshore field.

Japanese firm JX Nippon Oil and Gas Exploration Corp will hold a 15 per cent stake in PTT EP’s Block M11 and Total E&P Myanmar will take 40 percent, while the Thai energy giant will remain the operator at 45 percent.

Currently, the token western presence is made up by Total, which has been in Burma since 1992, pre-dating international sanctions and operates the Yadana gas field as part of a consortium made up from America’s Chevron, PTT EP and the Myanmar Oil and Gas Enterprise (MOGE).

-Kate Kelly is a pseudonym for a journalist working inside Burma.

More than 1,000 Palaung ethnic residents in northern Shan state have fled their homes as fighting between government forces and several ethnic armed groups continues to erupt in the region.

Lwe Poe Rein of the Taaung (Palaung) Students and Youth Association said fighting between the Burmese Army and armed groups, including the Kachin Independence Army, Taaung National Liberation Army and the Shan State Army-North, near Kutkhai, Mongtong, Namhsang and Namtu townships has forced residents to abandon their homes.

“Most people are fleeing into the jungle,” said Lwe Poe Rein.

“There are more than 1,000 people including women and children – most of the males are elderly.”

According to Lwe Poe Rein, the Burmese Army has five battalions active in the region and most of the displaced people are from Pankhagyi, Pankhalay, Naok, Sankaw and Konpaung villages in Mongtong township and Mawaw village in Namtu township.

Aid has not been able to reach victims hiding in the jungle, most of whom are tea farmers whose land has been ruined by the fighting.

Meanwhile, relief groups in Kachin state said heavy fighting in the Hpakant jade mining region has forced about 6,000 villagers to leave their homes. According to experts, there are an estimated 90,000 people in Kachin state who have been displaced.

The KIA and Burmese troops have been involved in intense fighting, after a ceasefire broke down in June 2011.

Although the government signed a raft of ceasefire deals earlier in the year with armed ethnic groups across the country, Burmese troops continue to engage in brief skirmishes with the rebel armies, which observers say is a sign that the military isn’t always willing to live up to the agreements brokered by union politicians.

With talks between armies actively fighting the government stagnating, armed groups are openly vocalizing their weariness of the ongoing peace process.