Philippines Prepared for Incoming Chinese Ships

7 May, 2013
Political Security

• A fleet of at least 30 Chinese fishing vessels set off for the disputed Spratly Islands on Monday, and are expected to stay in the area for about 40 days, China’s Xinhua news agency reported
• The fleet departed from China’s Hainan province, with each ship having a capacity of more than 100 tons
• Huang Wenhui, who heads the fishing office in the Department of Ocean and Fisheries of Hainan Province, said the fleet is to explore opportunities of sustained and regular fishing around the islands
• The Philippines responded by sending Navy ships to closely monitor the latest developments in the Spratlys, and will be ready to assert the country’s sovereignty over the Spratlys
• Armed Forces of the Philippines (AFP) spokesman Brig. Gen. Domingo Tutaan Jr. said actions to be taken against the Chinese fishermen will depend on the ground situation

China and Northern ASEAN Engages in Drug War

7 May, 2013
Political Security

• Officials from China, Laos, Thailand, Cambodia and Vietnam have gathered in Myanmar for several days of talks on a deepening drugs crisis, which the United Nations has warned poses a threat to public security
• A rebound in poppy cultivation over the last six years in Myanmar, the world’s second-largest opium producer, has raised grave concerns among officials, while amphetamine-type stimulants (ATS) are also surging
• While the previous target was to eliminate drug production by 2014, Myanmar deputy police chief Zaw Win has announced during the opening of the six nations talk to extend efforts to 2019
• Concluding the six nations talk on Thursday, China and the five ASEAN countries pledged to boost cooperation in fighting against illegal drugs in the region, step up alternative development programmes and share experience in drug use prevention, treatment and public awareness raising exercises

Challenges in Chinese Coal Industry

6 May, 2013
Trade and Investment

• Availability of cheaper coal imports and an increase in hydro power output has affected China’s domestic demand for coal, resulting in an abundance in stocks throughout the industry and forcing producers to slash output quantity
• Slowing growth in China further affected demand for the commodity, and the domestic market struggles to absorb the excessive supplies, pushing down domestic coal prices to 613 yuan (US$ 99.95) a tonne
• 32 of the 43 coal companies listed on China’s stock markets seeing earnings decline from a year earlier
• Industry wide revenues and profits have gone down 0.8% and 51.4% on average respectively
• Introduction of a coal tax is also anticipated in China’s energy tax reforms, and could hit the industry severely
• Coal mine safety has improved but is still a concern in China, with accidents killing a total of 1,384 people in the year 2012

KBank allows Myanmar ATM transfers

8 May, 2013
Business and Investment
Thailand based Kasikorn Bank (KBank) will later this month start allowing Myanmar nationals in Thailand to send remittances back to Myanmar via KBank ATMs, in cooperation with Myanmar’s Co-operative Bank (CB Bank). This comes as a part of KBank’s policy of building a network of comprehensive financial services ahead of the ASEAN Economic Community in 2015. More than three million Myanmar nationals are working in Thailand, with about 1.8 million more are expected by the end of 2013.

Changes in store for ‘Treasure Bank’

13 May, 2013
Business and Investment
The Myanmar Livestock and Fisheries Development Bank public company has announced its plans of doubling its capital to 70 billion kyat (US$77.5 million) and to change its name to ‘Treasure Bank’, an official said. The Bank wants to change its name because the current name has led to misunderstandings regarding its operations. “Some people think that only livestock and fisheries businesses can work with us, but we would like to extend our client base,” bank director U Kyaw Lwin said.

Starbucks plans to enter Myanmar

13 May, 2013
Business and Investment
Starbucks is planning on increasing its presence in Asia, including opening a branch in Myanmar within the next two years. The firm is planning on increasing the number of outlets in China from 850 to 1500 by 2015, and to double its size in Thailand to 320 in the next five years. Currently, Starbucks has 19,000 coffee branches in 62 countries.

Malaysian Department Store opens in Yangon

13 May, 2013
Business and Investment
Malaysia retail chains Parkson opened its department store in Yangon last week. The joint venture is between Parkson Retail Asia (70%), Yoma Strategic Holdings (20%) and First Myanmar Investment (FMI) (10%), and they are planning on building another store in four years time. Parkson is operated by Malaysian Lion Group.

Heineken forms Myanmar joint venture to build brewery

13 May, 2013
Business and Investment
Heineken, the world’s third-largest beer maker, has signed a joint venture agreement to brew and sell its beers in Myanmar. The venture is with a local company Alliance Brewery Co Ltd (ABC) and will build a US$60 million brewery near Yangon, which should become operational by the end of 2014.

Exploitation claims see labour agencies suspended

10 May, 2013
Economy
The Ministry of Labour has suspended 12 of the largest employment agencies in Myanmar for alleged corruption and exploitation of workers. The companies will be unable to send migrant workers to Thailand until an investigation into their business practices is completed. The Migrant Worker Rights Network has called the system “extortionate in practice”, both for the high fees migrants must pay to enter Thailand and the gruelling work conditions they are forced to endure after they arrive.

Electricity supply cut at manufacturing hubs

10 May, 2013
Economy
Manufacturers in Yangon and Mandalay are facing steep increases in costs and possible job losses after the government shut down their electricity supply due to drought, the latest sign that the ageing power grid is holding back economic development.