Splinter fears at Wa summitThree armed ethnic groups battling the Tatmadaw in northeastern Shan State have offered to quit from the Nationwide Ceasefire Coordination Team, but Wa leaders say doing so would jeopardise the peace process. NEWS 3

Protesters hold signs campaigning for the cancellation of a planned 1280-megawatt coal project in Mon States Ye township yesterday. Organisers say up to 6000 people attended the rally in Ann Din village, where Toyo-Thai plans to build the US$2.8 billion plant under an agreement signed with the government last month.

WWW.MMTIMES.COM DAILY EDITION ISSUE 36 | WEDNESDAY, MAY 6, 2015

500Ks.

HEARTBEAT OF THE NATION

PAGE

2PHOTO: WA LONE

BUSINESS 9

Australian oil firm pulls out of concessionAfter being bought out by a China-based firm and delisted from the Australian stock exchange, Roc Oil withdraws from consortium that won the rights to a shallow-water block.

NEWS 5

PR plan not dead yet Upper house MPs say they will continue with a plan to approve a bill to introduce proportional representation for the 2015 election, despite missing an April 30 deadline set by the Union Election Commission.

BUSINESS 8

Red tape holds up first legal wine imports Wine suppliers have not yet applied for import licences due to difficulties meeting government requirements, sources say, almost two months after imports were legalised.

NEWS 3

Second death camp found in Thai jungleThai authorities find second camp with graves of Myanmar and Bangladeshi trafficking victims, days after recovering remains of 26 people in jungle near border with Malaysia.

2 News THE MYANMAR TIMES MAY 6, 2015

Factory owners push back against proposed wage rate

MINIMUM wage negotiations are inching toward a compromise far be-low the amount demanded by protest-ing labourers, though garment factory owners are still holding out for little or no pay boost, according to a repre-sentative from the countrys peak busi-ness body.

We are arranging a meeting with garment factory owners soon and we are planning to negotiate based on the K3000 minimum sal-ary that the government pays its personnel, said U Aye Lwin, secre-tary of the Union of Myanmar Fed-eration of Chambers of Commerce and Industry.

While most private industry em-ployers have agreed to a minimum wage set between K3000 to K4000 (US$3-4), U Aye Lwin said garment industry bosses are the last holdout. The garment factory owners have been unwilling to lift pay rates beyond K1500 a day.

Striking factory workers have de-manded wages fixed at a K5600-a-day baseline.

The garment factories claim either of the proposed wage bumps would harm their businesses.

We could not pay K4000 without hurting the quality of the product, said U Khin Maung Aye, owner of the Latt War garment factory.

He added that if the government reduced the costs associated with operating a factory, such as higher electricity rates than those charged to residential areas, a K3000 minimum could be considered.

We already reported to the gov-ernment about the difficulties we are facing and we are trying to discuss how to reduce those necessary costs with the relevant administrative de-partments, said U Aye Lwin, who em-phasised the need for what he called a win-win solution.

However, Ko Tun Naing, a worker at the Sun Pleasure mattress factory, said the minimum wage should be based around meeting the basic living costs of workers, not on what employ-ers can afford.

An employer might have to pay all these unnecessary fees, but it is not a good-enough reason for not paying proper wages, he said.

No coal, no Toyo-Thai: Mon villagers rally against plant

A JOINT project to build coal-fired power stations involving the Union government and a foreign investor has divided local residents in Mon State. Yesterday about 6000 villagers gathered to protest against the project in Ann Din village, about 10 kilome-tres (6.2 miles) from the town of Ye.

The Thai-based Japanese com-pany Toyo-Thai signed an agreement with the government on April 9 to develop the power station amid accu-sations from locals of unfair dealing.

Under the agreement with the Department of Hydropower Plan-ning, Toyo-Thai will develop two 640-megawatt coal-fired power plants with a total investment of US$2.8 billion, according to a com-pany statement.

Ko Min Aung Htoo, an environ-mentalist with the Myanmar Alliance

for Transparency and Accountability (MATA), said the company and the government have not been open about their project with local people.

The monks are leading public opinion against it, he said.

Yesterday, the road to Ann Dinn was lined with houses displaying No Coal placards, skull-and-crossbones posters and demands for the protec-tion of the environment. At the rally, participants held similar signs, and shouted, No coal, no Toyo-Thai protect our natural environment.

Though Ye township police issued a permit for the demonstration, resi-dents said protesters from two local villages, Nwe and Nga Mya, had been prevented from attending by a local pro-government militia group.

Mon ethnic armed groups are also said to support the local people and reportedly took part in the protest. Mon political parties, the National League for Democracy and civil so-ciety in Ye township also joined the demonstration.

U Aung Naing Oo, the state MP for Chaungzon township, said the Mon State parliament had approved

a report he had submitted opposing the project on April 8, the day before the agreement was signed in Nay Pyi Taw.

The government should listen to the people. They dont want the coal project in their area, he said.

U Aung Naing Win said the Yan-gon-based Win Yaung Chi Oo com-pany, apparently on behalf of Toyo-Thai, had collected 6000 signatures from residents in support of the pro-ject. Win Yaung Chi Oo had bought 500 acres of land near Ann Din vil-lage for the project, he said.

They told the residents when they bought the land that it would be used for fish and prawn ponds, but later they announced they had made an alliance with Toyo-Thai. I think that is dishonest, he said.

The Myanmar Times attempted to contact Daw Htay Win, the direc-tor of Win Yaung Chi Oo, without success yesterday.

U Kyaw Thu, the secretary of Kyon Laung village NLD branch, ac-cused both the government and the company of lacking transparency. I understand that the project might provide some benefits for local peo-ple, but were concerned about the possible side effects, he said.

Ye township residents have long complained about the high cost of electricity locally. In the absence of a government power line, private com-panies charge up to K600 a kilowatt hour, about 10 times the rate from the national grid.

But U Kyaw Thu said the govern-ment needed to find a better way of providing electricity. The power plant could pollute soil, air and water in our region, he said.

YE TOWNSHIP, MON STATE

WA LONE

walone14@gmail.com

NYAN LYNN AUNG29.nyanlynnaung@gmail.com

U Aung Naing Oo, a representative in the Mon State Hluttaw, speaks

at a rally in Ye townships Ann Din village yesterday. Photo: Wa Lone

BILLION US$

2.8Estimated cost of the 1280-megawatt

coal-fired power plant planned for Mon States Ye township

News 3www.mmtimes.com NEWS EDITOR: Thomas Kean | tdkean@gmail.com

Second abandoned death camp found

THAI police announced yesterday the discovery of a second remote camp believed to contain human re-mains of Myanmar and Bangladeshi migrants who died while being held for ransom.

The abandoned detention site, which was riddled with five shallow graves, is barely 1 kilometre from the first camp, on Thailands border with Malaysia, where authorities ex-humed 26 bodies over the weekend.

Investigating police have identi-fied at least five other mass grave locations near the first camp, the Bangkok Post reported.

But according to migrant rights advocates, the network of secret death camps extends much further, with thousands of makeshift deten-tion sites lining the Thai-Malaysia border. Refugee seekers, mainly those smuggled out from Rakhine State via perilous sea voyages, are re-portedly held at the remote locations while traffickers attempt to extort large sums of money from families before allowing onward passage.

A United Nations report released in December estimated more than 53,000 people from Bangladesh and Myanmar undertook such a journey through Malaysia and Thailand last year alone.

On May 4, Thai Police Commis-sioner Somyot Pumpanmuang met investigators in Thailands southern Songkhla province to determine the extent of the traffickers secret hold-ing camps, according to Thai state media.

Prime Minister Prayuth Chan-o-cha expressed concern on May 4 that some government officials might be involved.

But while four local adminis-trative officials near the Songkhla camps have been arrested along with a fourth Myanmar suspected human trafficker, the Thai police commis-sioner announced on May 4 that six officers with close ties to the mas-terminds of the Rohingya trafficking ring would only be transferred.

The assistance of the police isnt just about them looking away. They

are key players very involved in the trafficking, said U Maung Kyaw Nu, president of the Burmese Rohingya Association of Thailand.

Observers have questioned whether Thailand has more than a cosmetic interest in overhauling its entrenched trafficking system or in uprooting the traffickers secret holding sites.

Chris Lewa of the Arakan Project said the recent raids on the camps represent just one of the mediatised antics the Thai government has un-dertaken in the last couple months to demonstrate action.

Thailand is still smarting from a bruised reputation after the US State Department downgraded the country to the lowest possible ranking on its annual Trafficking in Persons Report. The next report is due out in June. The State Depart-ment declined to comment on any possible ranking for Thailand, but a department official told Reuters yesterday that the United States, Thailand, the UN and the Interna-tional Organization for Migration are in conversation about the secret holding camps.

The unnamed spokesperson also urged a transparent investigation, in remarks that seemed to echo a 2013 statement following a Reuters investigation publicising the secret gulags.

Activists have been putting pres-sure on the government to crack down on these camps for two or three or even more years, but it hasnt happened, said U Maung Kyaw Nu. They know [the camps] exist, but its a question of political will.

Kachin States amber deposits helped scientists discover a new species of extinct predatory cockroaches that lived alongside the dinosaurs. Manipulator modificaputis, found exclusively in Myanmar amber fossils, resembles a praying mantis with elongated limbs and a flexible head on a long neck, characteristics scientists ascribe to a predator. The 100-million-year-old specimen was mined at a site called Noije Bum, about 20 kilometres southwest of Tanai. Noije Bum is one of the most important sites for dinosaur-age amber in the world, according to Peter Vransk, one of the authors on a paper about the new finding and a scientist at the Geological Institute in Bratislava, Slovakia.

IN PICTURES

PHOTO: PETER VRANSK

Resignations suggest split in armed groups

THREE allied ethnic armed groups fighting government forces in the Kokang border region have proposed quitting the 16-member Nationwide Ceasefire Coordination Team, which concluded a draft nationwide cease-fire accord with government repre-sentatives in late March.

Naing Han Thar, leader of the NCCT, said the three groups had de-clared their intention to resign from the collective negotiating body on May 4, during ceasefire talks attend-ed by 12 ethnic groups in the United Wa State Army (UWSA) stronghold of Pangkham on the border with China. The issue had not been de-cided, he said.

The three factions are the Myan-mar National Democratic Alliance Army (MNDAA) an ethnic Chinese militia which has been battling the Tatmadaw in the Kokang area since February 9 and two of its allies, the Taang National Liberation Army (TNLA) and the Arakan Army (AA).

The government and the Tat-

madaw have rejected offers of ne-gotiations with the MNDAA and instead pursued military operations in Kokang throughout the nation-wide ceasefire talks with the NCCT in Yangon in March. Heavy fighting was reported yesterday from the border by a Chinese-language web-site, Myanmar Online.

A splintering of the NCCT, if con-firmed, could help the Tatmadaw achieve its objective of taking total control of Kokang while neutralising other armed ethnic groups through the ceasefire accord. But the accord still has to be endorsed by leaders of the groups represented by the NCCT, and the date and venue for that meeting has yet to be decided.

The UWSA, the most powerful of the countrys non-state armed groups, with close ties to both China and the MNDAA, said it opposed the resignation proposal even though the UWSA itself is not a member of the NCCT and has had its own bilat-eral ceasefire with the government since 1989.

U Aung Myint, the UWSA spokes-person, said yesterday they had asked the three groups to reconsider.

We dont want them to resign from the NCCT because it can affect the peace process. If the government doesnt want to sign the nationwide

ceasefire accord with these three groups, then it cant call it a nation-wide ceasefire, he said.

A major objective of the UWSA in calling the summit of ethnic leaders in Pangkham was to ensure that the Kokang militia was kept in the peace process. Analysts said they assumed that China, which has urged U Thein Seins government to negotiate with the MNDAA, had endorsed the sum-mit. The meeting began on May 1 and is scheduled to end today.

Mai Aike Kyaw, a spokesperson for the TNLA, blamed the govern-ment for his groups decision to quit the NCCT, saying it had contin-ued military operations during the ceasefire talks, refused to recognise it as an armed ethnic group and put pressure on the UWSA to exclude it from the Pangkham meeting.

The Tatmadaw has also started using the Unlawful Association Act to crack down on ethnic groups not recognised by the government. Last month the authorities in Rakhine State began arresting civilians for contact with the Arakan Army and on May 3 the Tatmadaw warned me-dia outlets in Pangkham they would be prosecuted if they reported state-ments by the MNDAA, whose mili-tary commander, Peng Deren, is at-tending the talks.

YE MON GUY DINMORE

[The Thai police] are key players very involved in the trafficking.

U Maung Kyaw Nu Rohingya rights activist

LAIGNEE BARRONlaignee@gmail.com

The Nationwide Ceasefire Coordination Team is on the verge of fracturing with three ethnic armed groups involved in the Kokang clashes threatening a walkout

4 News THE MYANMAR TIMES MAY 6, 2015

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Ship cleared to leave Yangon port after collision

AS the investigation into the colli-sion of two ships in Yangon River on April 26 proceeds, the container ship involved was allowed to leave Yangon Port, said a Shipping Agency Depart-ment spokesperson.

U Aung Myo Tin said the container Panja Bhum, carrying 525 contain-ers of beans, garments and other goods, had been cleared to depart for

Singapore on May 1.In the collision, which occurred be-

tween Wardan jetty and Ahlone dock-yard, the sand carrier Zwe Myint Myat Tun 3 broke in two. The front section immediately sank, and the rear part drifted with the current before sinking near Pansodan jetty.

U Ko Ko Naing, director of the Maritime Safety, Security and Envi-ronmental Protection Division of the Department of Marine Administra-tion, told The Myanmar Times on

April 30 that the departure had been approved by mutual consent.

The investigation is being carried out by the Maritime Safety, Security and Environmental Protection Divi-sion, the Marine Engineering Division, and the Legal and Technical Standards Division of the DMA. U Ko Ko Naing said the investigation was expected to be concluded in two weeks.

According to an evaluation made by ship owners, the sand carrier sus-tained more than US$300,000 of

damage, and the container ship suf-fered losses relating to the delay in their schedule, he said.

Negotiations are proceeding. Both ships have insurance, which is being taken into account in calculating the compensation. Both sides will reach a compromise solution. When the inves-tigation is complete we will release a statement and forward it to the ship owners. With their consent, we will make it public.

Translation by Zar Zar Soe

SHWEGU THITSARkhaingsabainyein@gmail.com

An official speaks at the launch of BRT lite in Yangon on May 4. Photo: Aung Htay Hlaing

Government seeks private funding for BRT system

A PUBLIC transport scheme that would provide an express bus service along 150 kilometres of Yangons main roads could be available within three months, transport chiefs hope.

Known as BRT lite, the scheme is based on a plan drawn up in 2013 by the Japan International Cooperation Agency (JICA) for a Bus Rapid Transit system intended to cover much of the city. The less-ambitious version was chosen because it costs less than the original plan, which calls for dedicat-ed bus lanes and reconfigured traffic signals.

To help pay for the scheme, the gov-ernment is proposing a so-called Pri-vate-Public Partnership system (PPP), it was announced at a press confer-ence in Yangon on May 4.

For the first stage of the project, with an estimated cost of K25 billion (US$22.97 million), the government would provide K10 billion and invite the public to invest the remaining K15 billion. The total sum envisaged for the project would be about K100 billion.

U Maung Aung, an adviser with the Ministry of Commerce, told the press conference the public would be able to

buy shares at K100,000 apiece.In the PPP system, the govern-

ment would take care of the infra-structure, such as the roads, with its 40 percent investment. The rest of the money would come from the public, he said.

The government has not yet stated what infrastructure upgrades it will make with the K10 billion. While exist-ing bus lines will continue as normal, it is also unclear whether they will be able to benefit from the infrastructure upgrades, or whether these will be re-served for the BRT service.

U Maung Aung said the proposed PPP system would improve the safety and reliability of the bus service by us-ing left-hand drive buses with air-con-ditioning, operated by salaried drivers and using the iPay card system to col-lect fares, controlled by a centralised body.

Public transport is not safe now

because private owners maximise their profit. Their drivers break traffic laws. Private owners are welcome to participate in the PPP according to the conditions we define, said U Maung Aung.

The system would initially run from its base in Htaukkyant to 8 Mile junction, from where buses will travel along both Pyay and Ka-bar Aye Pagoda roads a trip of 25.68km. An extension to phase one will see routes added to cross streets connecting Hlaing Tharyar to 8 Mile, Dagon University to Parami Road and Thilawa Special Economic Zone to Botahtaung Pagoda Road.

U Tin Maung Kyi, head of YCDCs roads and bridges department, said the entire system would eventually cover 149.91km.

We chose the BRT [lite] system in order to avoid delay. Yangon City De-velopment Committee and the Minis-try of Construction can maintain these roads, he said.

There is no limit to the number of shares investors can buy. This will save commuters time, and the card system for fare payment will be more convenient. Customers want some-thing done about congestion, and the president has directed us to imple-ment the system within three months if we can, said Yangon Region Chief Minister U Myint Swe.

U Maung Aung added, Yangon is growing in wealth and population. Its time to get people out of their

cars and into public transport.He said the governments other at-

tempts to relieve Yangons traffic con-gestion were working, citing the Min-istry of Commerces requirement since January 1 that car importers show that they can provide sufficient park-ing space for imported vehicles. As a result, 5000 fewer cars were imported in March, he said. In the past, 15,000 or 20,000 cars were being imported every month.

U Ko Ko Naing, who owns a bus on both the No 31 and G2000 lines, said he wasnt concerned about the threat from a government-backed BRT system.

We will face many rivals. The commuters will also have many choic-es, he said. But we arent worried In that system, the buses are owned by many people, unlike us. We can take care of our buses well, because its natural that the owner wants to look after their property.

Another owner, U Min Zaw, from North Okkalapa, said he welcomed the system and would consider taking part.

But the government should not discriminate against non-BRT buses, he said.

He added that the fare should depend on the distance travelled, rather than a fixed amount as used on the special buses. For exam-ple, if you travel 1 mile, you pay K20. I dont want special buses any-more all buses should be treated the same.

AYENYEIN

WINayenyeinwin.mcm@gmail.com

149.9Length of the BRT system upon

full implementation, including 25.7 kilometres for the first phase

Bus network would be 60pc privately owned, with anticipated total cost of about K100 billion (US$91.8 million)

News 5www.mmtimes.com

PR not dead yet, says bill committee

UPPER house MPs have dismissed a Union Election Commission deadline to introduce a bill on pro-portional voting, saying they will proceed with plans to finalise the bill this month. The comments cast doubt on which voting system will be used in November for upper house seats, just as it appeared first-past-the-post would remain in place.

In November, the upper house, or Amyotha Hluttaw, voted to in-troduce proportional voting in this years election. However, MPs re-main bitterly divided on the propos-al, with some calling for a Constitu-tional Tribunal ruling on the legality of proportional representation.

This has resulted in a series of delays. The Union Election Com-mission responded by sending par-liament a letter saying there would be little possibility of introducing proportional voting for the coming election unless the bill committee finished its draft by the end of April.

That deadline has come and gone, with no bill in sight.

Several weeks ago, a UEC official explained the commissions con-cerns, telling a local journal that the delay in enacting the bill for propor-tional representation would affect the curriculum for voter education. The education program would take on greater importance if propor-tional voting was introduced, the official said, because the voting sys-tem has not previously been used in Myanmar.

But the houses bill committee appears to have not given up hope of introducing legislation to change the voting system for Novembers election.

We will continue doing what we have to do, committee chair U Khin Maung Yee, a Union Solidarity and Development Party representative from Ayeyarwady Region, told The Myanmar Times.

The UEC is doing its duty and we are doing ours. The UECs warn-ing has no impact on the hluttaws actions, he said.

But when parliament resumes on May 11, the bill committee will have to convince not only the commission but also increasingly sceptical MPs that the electoral reform ship has not already sailed at least for 2015.

Even Daw Khin Wine Kyi, the National Democratic Force MP who first floated the idea in June 2014, said she thought there was nearly zero chance of changing so late in the game.

Since the UEC informed [parlia-ment] before Thingyan [about the April 30 deadline], I doubt it will be possible to use the voting system for the coming election, she said. But I think the Amyotha Hluttaw will con-tinue to develop the bill into a law for elections after 2015, she said.

To gather feedback on the pro-posed bill, the Amyotha Hluttaw held a three-day hearing from April 6. Views were mixed: Some support-ers of proportional representation agreed it was now too late to change

the system for Novembers vote, while others insisted there was still time.

But many others particularly from the National League for De-mocracy and ethnic minority par-ties remain strongly opposed to proportional voting, which is seen as benefitting the Union Solidarity and Development Party and smaller ethnic Burmese parties, such as the NDF.

Opponents generally argue that the system is too complex and will be hard for voters to understand.

Ethnic minority parties also ex-press concern that the system would enable candidates from non-local groups, such as the Burmar, to win seats in minority areas.

In January, 26 MPs opposed to proportional voting, including Rakhine National Party leader U Aye Maung, sent a request through Speaker U Khin Aung Myint to the Constitutional Tribunal, asking it to check whether proportional voting was in line with the constitution. Constitutional concerns already forced MPs in the lower house to abandon a proposed switch.

However, the tribunal respond-ed that it could not make a deci-sion on proportional voting in the upper house until a bill has been developed.

Some parliamentary observers say MPs should abandon their push for proportional voting in the No-vember election.

Even if a bill is soon approved for introducing proportional repre-sentation, it will create a big burden for the UEC and the voters, said Ko Htin Kyaw Aye, deputy director of Open Myanmar Initiative, a parlia-mentary watch group.

Regardless, the bill submitted to parliament on March 19 by U Zaw Myint Pe, head of a proportional representation commission, is likely to be tabled for discussion in the coming weeks.

U Win Naing Shein, another member of the upper house bill committee, said it was wrong to rule out proportional voting in this years election.

Lets see how the process moves forward when the session resumes [on May 11]. If we can finish all the procedures in parliament in May, I think it is still possible to adopt the voting system, said the USDP mem-ber, who represents Bago Region.

Anyway, he said, the UEC dead-line will have no effect.

If parliament decides to adopt the system, the UEC have no other option [but to accept it].

If we can finish all the procedures in parliament in May, I think it is still possible to adopt the voting system.

U Win Naing Shein Upper house bill committee

Hluttaw reps criticise Ministry of Agriculture for Nay Pyi Taw focus

THE Agriculture and Irrigation Min-istry has been accused of favouring the capital in its efforts to boost pro-ductivity of the nations farms.

Each year, the ministry allocates funding to upgrade private farmland into newly demarcated parcels of land denominated in hectares, with access paths and irrigation channels. The reg-ular size and shape make it easier to ap-ply mechanised agriculture to cultivate the plots, resulting in higher yields.

But the program has mostly fo-cused on Nay Pyi Taw in part, critics say, because the ministry likes to show off the farms to visiting dignitaries.

Amyotha Hluttaw representative U Nane Khin Paung from Chin State said the practice should be expanded to other regions and states in need of development.

He said modern terrace culti-vation should be introduced into mountainous Chin State instead of slash-and-burn farming that leads to deforestation.

Another upper house representa-tive, U Myat Nyarna Soe, agreed that the farm upgrade program needed to be expanded to others areas that have less development and where poverty rates are high.

The government needs to help them increase their agricultural pro-duction, he said.

The ministry says it plans to ex-pand the project, but lacks the funds to do so. In the meantime, it will con-tinue to put the capital first.

On April 30, U Soe Hlaing, direc-tor general of the ministrys Agricul-tural Mechanisation Department, told The Myanmar Times that the de-partment would extend the practice to about 700 hectares (1500 acres) of farmlands in Tatkon township, inside the Nay Pyi Taw Union Territory, in 2015-16.

We are not sure whether this will be done after the monsoon paddy harvest or right now, he said.

The project is a boon for Nay Pyi Taw residents, as it leads to higher land prices once the fields are up-graded, said U Myo Linn Aung, a

farmer from Pyinmana township.In the past, farmland was divid-

ed up into various sizes and shapes, which made it difficult for farmers to plough or harvest their crops in time. Rearranging the land into standard sizes and shapes, and adding paths and irrigation canals, helped solve those problems and also increased land prices where standardisation took place, he said.

U Win Hlaing Oo, deputy direc-tor of the Department of Agriculture, said there were more than 160,000 acres of farmland growing paddy in Nay Pyi Taw, and more than 10,000 acres of farmland had been demar-cated there for mechanised use.

Most regularised plots are in Dek-khinathiri township, with others in Zabuthiri, Pobbathiri, Ottarathiri and Pyinmana townships. The min-istry also plans to apply the practice to Zeyathiri, Lewe and Tatkon town-ships in Nay Pyi Taw.

However, other projects have been established in Bago, Sagaing, Yangon, Mandalay and Ayeyarwady regions, he said. Translation by Thiri Min Htun

LUN MIN MANG

lunminlm@gmail.com

HTOO THANTthanhtoo.npt@gmail.com

Visitor numbers, entrance-fee income rise at Bagan zone

CASH is rolling into Bagan as foreign tourists bring dollars with them, lo-cal officials say. The trend is likely to continue, as the entry fee to the cul-tural zone was last year doubled from US$10 to $20.

U Nyein Lwin, deputy director of the Bagan branch of the culture min-istrys Department of Archaeology and National Museum, told The Myanmar Times on May 1 that staff shortages meant they had trouble collecting the fee from all visitors.

We rely on hotels and entry-point gates to let us know about incoming

tourists, he said.In fiscal year 2013-14, 195,372 tour-

ists brought in $2.828 million, rising

in the following year to 241,965 tour-ists and $4.109 million.

As of the first few weeks of the cur-rent financial year, which began on April 1, nearly 10,000 visitors have al-ready spent nearly $200,000, accord-ing to the department figures.

Though the number of foreign guests coming to Bagan Museum fell slightly, from 10,494 in 2013-14 to 10,213 in 2014-15, last years visitors still brought in more than K51 mil-lion, compared to the K47 million and $5315 brought in by local and foreign tourists the year before.

More than 300 tourists visited be-tween April 1 and 24, spending K1.5 million. Translation by Emoon

Tourists have their photo taken atop a temple in Bagan. Photo: Si Thu Lwin

SI THU LWIN sithulwin.mmtimes@gmail.com

MILLION US$

4.1Income from foreigner entrance fees at Bagan archaeological zone in 2014-15,

with 241,965 visitors

MPs say they will continue with plan to draft bill on proportional representation for 2015 election

6 News THE MYANMAR TIMES MAY 6, 2015

From barracks to ballot box, military holds key to power

THE Myanmar soldier, wearing his crisp green uniform, rifles through a box of T-shirts for a souvenir of his time in the countrys fledgling legisla-ture a deeply controversial position on the cusp of key elections.

With a quarter of parliamentary seats and an effective veto on opposi-tion leader Daw Aung San Suu Kyis presidential hopes, unelected military men have a major role in the delicate political transition, regardless of the result of landmark polls later this year.

Daw Aung San Suu Kyi has said re-forms are stalling and refuses to rule out a boycott of the election, expected in early November this year, as she fights to change the junta-era consti-tution which bars her from the top job.

While the army is reluctant to fur-ther relinquish its political leverage, observers say the hundreds of soldiers who have sat in parliament have been exposed to lively debate and compro-mise like never before.

It is interesting, the soldier, ask-ing not to be named, said of his experi-ence in the legislature.

We serve here as a duty, appointed by the Tatmadaw, he said, after finally selecting a T-shirt bearing a picture of the massive parliament building in Nay Pyi Taw.

Military mightIn 2011 Myanmars military leaders dramatically stepped aside in favour of a quasi-civilian government, which has ushered in sweeping reforms

despite remaining dominated by re-tired generals.

Those changes including the re-lease of political prisoners, untether-ing of the press and opening-up of the economy stunned the international community and lured in hordes of for-eign investors.

An International Crisis Group re-port released in late April said the military initiated the transition and continues to back it.

But it said that while the army chief has pledged to ensure credible elec-tions, its expectations are unclear. The army also retains significant pow-ers, including control of key security ministries.

Daw Aung San Suu Kyi, whose Na-tional League for Democracy is expect-ed to sweep the elections, is ineligible for the presidency because the army-drafted constitution excludes those with foreign children from top office. Her two sons are British, as was her late husband.

The military has vowed to prevent major constitutional amendments.

It has the last say on charter chang-es because of rules that require more than a three-quarters majority for sig-nificant amendments.

And on these issues they will vote together.

When it comes to some things, some sections, we are organised, mili-tary MP Brigadier General Htay Naing said in a rare interview at parliament recently.

But he said army MPs were entitled to vote freely on other matters.

The military contingent of MPs selected by Commander-in-Chief Senior General Min Aung Hlaing and shuffled periodically had evolved over the years, he added.

In the past, there were many

young people. They didnt understand much. Now we have more seniors and so they are more knowledgeable, he said.

The appointment of higher-rank-ing officers to parliament in 2012 also suggests an evolution in the under-standing of their role, according to Renaud Egreteau, a visiting fellow at the Institute for Southeast Asian Stud-ies in Singapore who has conducted research on Myanmars parliament.

While they have proved increas-ingly engaged in discussions, espe-cially in closed-door parliamentary committees, he said they remained relatively quiescent backbenchers and were likely to stay as such until after the election.

But he said their behaviour may change if the preserves of the military parliamentary bloc become increas-ingly challenged by fellow elected rep-resentatives or a new government.

Back to the barracks?Daw Aung San Suu Kyi has a complex relationship with an army that kept her under house arrest for over 15 years.

Her father, Bogyoke Aung San, is credited with founding the countrys modern military, and in 2013 the No-bel peace laureate admitted she was fond of the army despite her deten-tion, and despite a litany of allegations of rights abuses, particularly in Myan-mars ethnic conflicts.

As she is the daughter of General Aung San, there is no reason not to respect her personally. But the action and attitude of her and her party are sometimes different from ours, Brig Gen Htay Naing said.

Daw Aung San Suu Kyi has said that allowing soldiers to remain indefinitely in parliament is not democracy, but is advocating a gradual reduction in the proportion of army MPs a pragmatic position in a country and region blight-ed by military coups.

Even the army admits it will one day need to retreat to the barracks.

There will be a time when we are not needed here anymore, said Brig Gen Htay Naing, adding however that the countrys decades of ethnic conflict, still raging in some areas, justified the militarys continued presence in politics.

With Daw Aung San Suu Kyi barred from the presidency, observers say the tussle for the top job may still end up between two ex-generals the current president, U Thein Sein, and the lower house speaker, Thura U Shwe Mann while Senior General Min Aung Hla-ing is also thought to harbour political aspirations.

And with no timetable for a transfer to full civilian control, the men in green seem set to be a feature of Myanmars political landscape for the foreseeable future. AFP

Military members of parliament attend a Pyidaungsu Hluttaw session in Nay Pyi Taw on April 9. Photo: AFP

NAN TIN HTWE

nantin.htwe@gmail.com

Myanmar tough for mothers, says NGO reportFIONA MACGREGORfionamacgregor@hotmail.co.uk

MYANMAR is one of the worst places in the world in which to be a mother, according to a new report by Save the Chil-dren, which ranked the coun-try 157th out of 179.

Released on Monday, Save the Childrens 16th annual Mothers Index rates mother-hood conditions around the world based on five indicators related to maternal health, ed-ucation, income levels and the status of women.

Myanmar has a one-in-250 lifetime risk of maternal death, and under-five mortality rate of 52.3 per thousand live births. That compares with one-in-7900 and 2.8 deaths per thousand in Norway, which topped the list as the best place in which to be a mother.

Compared with other ASE-AN nations ranked on the annual index, Myanmar also scored significantly lower. Thailand, which was ranked number 72, has a one-in-1400 lifetime risk of maternal death and an under-five mortality rate of 13.2 per thousand live births, while Cambodia the lowest-ranked ASEAN country after Myanmar had rates of one-in-150 and 39.7 per thou-sand respectively.

The rankings also reflected Myanmars gross national in-come, low expected number of years of formal schooling, at 8.7 years, and extremely low number of female politicians, with just 4.3 percent of seats in the national parliament being held by women.

Papua New Guinea was the only Asian nation to appear below Myanmar in the list, which named sub-Saharan Af-rican countries as the 10 worst places to be a mother.

Somalia took last place, just below the Democratic Repub-lic of Congo and the Central African Republic.

Save the Children CEO Carolyn Miles said the data confirmed that a countrys eco-nomic wealth is not the sole factor leading to happy and healthy mothers.

In the case of Norway, they do have wealth, but they also invest that wealth in things like mothers and children, as a very high priority, Ms Miles said.

Save the Children also re-ported that mothers are hav-ing a tougher time in the worlds expanding cities, with survival gaps between rich and poor widening.

Cities in Bangladesh, Cam-bodia, Ghana, India, Kenya, Madagascar, Nigeria, Peru, Rwanda, Vietnam and Zimba-bwe have the highest gap for child survival, with poor chil-dren three to five times more likely to die than their affluent peers.

According to the Save the Children Myanmar website, the organisation initiated ac-tivities in Myanmar in 1995, and signed its first memoran-dum of understanding with the Ministry of Health in 2001.

Brigadier General Htay Naing, a military member of parliament, speaks during an interview at parliament. Photo: AFP

The role of military MPs has evolved over past four years but there are no indications they will exit parliament soon

FEATURE

News 7www.mmtimes.com

ViewsMedia freedom and the Tatmadaw

MAY 3 was World Press Freedom Day. To mark the occasion, the Min-istry of Information and the United Nations Educational, Scientific and Cultural Organization held an event together in Yangon. I dont know if it was a coincidence, but the same day the Tatmadaws newly formed True News Information Team sent a letter to the Myanmar Press Council (Interim).

The letter, dated May 3, was sent by the Public Relations and Psycho-logical Warfare department. It read:

Subject: Do not publish state-ments of the Kokang insurgent group (MNDAA) in the media.

1. We have known that the Myanmar National Democratic Al-liance Army (MNDAA), the Kokang insurgent group, is attending the meeting of ethnic armed group lead-ers in Panghsang township, eastern Shan State.

2. As the state has announced that the Kokang insurgent group (MNDAA) is an unlawful associa-tion, the press and media are now informed to absolutely not broadcast and publish statements made [by the MNDAA] at the meeting held in Panghsang. If they do, action will be taken according to the current laws.

The letter was signed by an officer on behalf of the chairm of the Tat-madaws True News Information Team.

The letter clearly states that infor-mation from the Kokang army must not be reported. It makes no mention of reporting on the announcements of other armed ethnic groups.

However, there are some elements of the letter that are not clear enough and could create fear and anxieties among local journalists reporting on the Kokang conflict, as well as more general news about ethnic armed groups and the peace process.

For instance, it has been said that the Kokang conflict will be discussed at the meeting of ethnic armed group leaders. Can that be reported? A statement may also be released of the conflict. It will not be released by the Kokang group individually but can that statement be reported? The next thing is that the Kokang may release a statement. This could be published by international news agencies. Can these news agency reports then be cited as a source? The Kokang state-ment would not be published directly.

The Tatmadaw has consistently

focused attention on limiting press freedom since the start of the Kokang conflict, and limiting the ability of journalists to acquire information and report on the fighting. When martial law was announced in the Kokang region, the government said offences under media laws were among those for which the death sentence can be handed down.

As a result, no one dares to take the risk to gather information on

the fighting first hand. However, journalists have reported news in line with media ethics based on both Tatmadaw announcements and interviews with the Kokang.

The threat of action has always been present, however. When Lieuten-ant General Myat Tun Oo was asked at a press conference in February whether interviewing the Kokang re-bels broke the law, he said there were laws that could be used to prosecute those who conduct such interviews.

This weeks letter may have been prompted by a recent dispute over a media report on the fighting for hill 2202 in the Kokang region on April 23 and 24. The Eleven Media Group

reported the news, referring to both the announcements of Tatmadaw and other news sources. The report also included unconfirmed information that the Tatmadaw had suffered many casualties and injuries. After the story was published, the Tatmadaw True News Information Team objected that Eleven had breached journalism ethics by using unverified sources and had damaged the Tatmadaws dignity.

Another important section of the May 3 letter is the reference to both print and broadcast media. Last year, the Tatmadaw charged five journal-ists from Unity with breaking the State Secrets Act. The court sentenced them to 10 years imprisonment, which was reduced by three years on appeal. Since then, private papers have been reluctant to publish news about the Tatmadaw. This is some-what understandable given that the current judiciary almost always finds defendants guilty if the Tatmadaw is the one laying the charges. They know what the likely result of a crimi-nal case will be.

Its important to note Myanmars media environment was much dif-ferent before 2011. Press freedom has

been given, but today the government still controls TV and radio broadcast-ing. The new government has been praised by international communi-ties for relaxing restrictions on print media. Another important reform in Myanmar is that of its administrative system. The country is now governed through a power-sharing system between the government, the hlut-taw, the judiciary and the Tatmadaw. Governmental organisations, including the Tatmadaw, are seeking to make reforms in line with this new political system.

The Tatmadaw has itself made a lot of positive reforms. Taking action against recruiting child soldiers, stopping the use of forced labour, reducing human rights violations, requesting its budget transparently in the hluttaw and participating in the peacemaking process these are all steps forward.

On press freedom, Myanmar is try-ing to be flexible. The government has shown understanding and patience. Journalists are allowed to cover stories about clashes with ethnic armed groups, including the Kachin Independence Army, and to criticise the Tatmadaw. The only time it has not been tolerant toward the media is in regard to the recent clashes with the Kokang.

The conflict with the Kokang is a civil war. The Tatmadaw is a part of the country. From the highest to the lowest ranks, its members are born of the people. Thats why everyone in the country has the rights to know how the Tatmadaw is doing its duty, in whichever region and under whatever circumstances. The domestic media have been doing their duty, too, by let-ting the people know what is happen-ing in which place. Keeping people in the dark was a tactic employed by the dictators in the former government. It is unsuitable for the reforming Tatmadaw to continue to do this.

If the Tatmadaw is preventing press freedom, its good image will be impacted at home and abroad. Similarly, it will harm the image of Myanmars burgeoning press free-dom. Thats why the statement from the Tatmadaw True News Information Team should be made much clearer. But the Tatmadaw should also review if the statement benefits itself, as well as the people and the country as a whole. Translation by Kyawt Darly Lin and Thiri Min Htun

SITHU AUNG MYINTnewsroom@mmtimes.com

Keeping people in the dark was a tactic employed by the dictators in the former government. it is unsuitable for the reforming Tatmadaw to continue to do this.

Soldiers ride on tanks during a ceremony to mark Armed Forces Day in Nay Pyi Taw on March 27. Photo: AFP

8 THE MYANMAR TIMES MAY 6, 2015

BusinessTHE launch of a legal rice trade between Myanmar and China will not immediately harm unofficial border trade, according to Myan-mar Rice Federation (MRF) general secretary U Ye Min Aung.

The overland border trade in rice has grown significantly over the past few years, from being neg-ligible five years ago to currently making up about two-thirds of to-tal exports. While legal from My-anmars position, the trade was not sanctioned by Beijing due to the lack of a bilateral agreement.

After a deal was struck last year, Myanmar traders are hopeful to begin the first formal exports to China as soon as this month. Yet while a legal avenue for trade is now opening, informal exports will also continue for the time being, according to U Ye Min Aung.

If China wanted to take action against the border trade, it would have already started, he said. But we cant predict what will happen, which is why we are trying to go on with legal exports only.

There have been instances of China shutting the border to in-formal rice imports, including one such move in September last year, which temporarily brought trade to a standstill.

U Lu Maw Myint Maung, a large-scale rice exporter and associate secretary of MRFs trade section,

said that Chinese-imposed restric-tions on the border trade market would negatively impact trade vol-ume but that they probably will not come in the short term.

It seems theyre not think-ing about restricting the border

market due to high domestic de-mands, he said.

Rice exports to China reached 752,000 tonnes in 2012-13 fiscal year, according to a report last year by the World Bank.

A number of other regional rice

exporters also been given the offi-cial green light to ship rice to Chi-na this year using a quota system. The Myanmar Rice Federation is actively seeking higher quotas and targeting a cap of 300,000 tonnes of rice for years following.

Border rice trade to survive bilateral move to legalise trade with China

Farmers harvest rice. Myanmars rice exports have been growing, largely due to interest from China. Photo: AFP

HTIN LIN AUNGhtynlynnaung@gmail.com

WINE suppliers have yet to apply for licences for legal imports due to difficulties in the process, ac-cording to industry sources.

Imports of wine have official-ly been legal since mid-March, though no company has yet ap-plied or paid the required import taxes to the Ministry of Commerce or the Companies Circle Tax office, said ministry director U Tin Ye Win.

Past wine imports appearing on the shelves have often been brought in through loopholes for hotels and duty-free imports. The government cracked down on this practice in late 2013, though the promised follow-up rules legalis-ing imports only arrived in March.

Although no company has yet received a legal wine import li-cence, at least five companies are working their way through appli-cations, with the aims of distribut-ing products to market in late June or July, according to the Myanmar

Retailers Association (MRA) sourc-es.

Other officials with the associa-tion welcomed the creation of rules allowing legal alcohol import, though note some increased barri-ers have also been put in place.

I am glad for the permission. It is in keeping with a market econo-my, and we hope to open more to other liquor or beer imports in the future, said MRA deputy chair and spokesperson U Myo Min Aung. But restrictions on the type of li-cence even if the market is open creates nonsense and causes brib-ery. The government should place restrictions on people who do not follow their policy.

A government move to increase the costs with selling and produc-ing liquor has drawn particularly strong criticism.

The Ministry of Home Affairs raised the annual fees for a licence to sell alcohol for this fiscal year, tripling the cost of a distribution licence from K500,000 to K1.5 mil-lion this year, said U Aung Naing Myint, owner of Shwe Moe compa-ny and executive member of MRA. Shwe Moe is trying to apply for an import licence.

The ministry has also made it more difficult to obtain liquor li-

cences from it directly, which has created a secondary market for them. Prices have been increasing, with an individual licence now go-ing for K5 to K7 million, a signifi-cant increase on the K1.5 million they cost three years ago.

These problems are causing us delays. It is not only the Home Affairs licences; we also have oth-er problems. We have to set up a company to import, U Aung Naing Myint said.

The Ministry of Commerce, sep-arately from the Ministry of Home Affairs, is to provide liquor import licences.

Most liquor shops currently sell imported alcohol without legal permission, meaning shops need

to change their theme if they want to legally take part in the business.

Legal imports under the new scheme must also travel by air or sea, which may put them at a disad-vantage to illegal imports entering from Thailand and China which are often of the same make and quality. U Aung Naing Myint said legal imports by sea or air could be double the price of alcohol brought in overland across the border.

The government cannot guar-antee they can defend against il-legal goods. It is very important to consider this, and we need to discuss with our sources [of for-eign imports] that they shouldnt import by land.

Director U Tin Ye Win said importers must have accurate numbers and distribution points to assist the Internal Revenue De-partment with its tax collecting.

Since we can expect easy illicit imports, I think nobody has ap-plied for a licence yet because of the requirements, he said.

U Tin Ye Win said the situation was similar to when the ban was removed on motorbike imports and still over half of imports were illegal.

We will not let a situation like this happen again.

No wine imports yet, months after a legal route announced

AYE THIDAR KYAW

ayethidarkyaw@gmail.com

OVER 100 people may be out of luck after winning rights to pur-chase low-cost housing from Shwe Lin Ban project in Yangons Hlaing Tharyar township, according to Daw Thida Than, a staff officer at the De-partment of Human Settlement and Housing Development.

A total of 768 different units at Shwe Lin Ban were meted out to applicants who had to first fill out application forms and then won a lucky draw for rights to purchase a unit. Daw Thida Than said not all of the winners have yet shown up to register their claims, despite being notified repeatedly.

Out of the [768] winners, 135 people have yet to register, she said. Weve called them three times. We will reject their names if they dont register their purchase of the apart-ments within the allotted time.

A raft of low-cost projects has been developed to assist those who are be-ing priced out of the increasingly ex-pensive market, with government bod-ies such as Yangon City Development Committee planning several develop-ments, usually on the citys outskirts.

Financing the purchase of houses and also low-cost housing has been a significant obstacle to increased house ownership.

Government-backed entities have worked to develop affordable financ-ing options for potential buyers, with Construction and Housing Develop-ment Bank (CHDB) to offer mortgages to those who won the draw to buy units at Shwe Lin Ban.

The bank has recently extended its loan term to eight years for buyers at the housing project, as its previous four-year loans had not been enough to support possible home buyers, ac-cording to CHDB managing director U Win Zaw.

Of course our bank lengthened the term. After stretching it out, more peo-ple are interested and the number of borrowers increased, he said.

Daw Kay Khine has applied for a mortgage to purchase a unit in the Shwe Lin Ban project in Hlaing Thar-yar township. She said the longer loan term makes it much more financially feasible for her to purchase a unit.

Those wanting to make a purchase with a CHDB loan must first open an account with the bank. The seller, buyer and bank then have to sign a contract.

Generally, CHDB requires a down payment of 30 percent of a low-cost apartment before providing the re-maining 70pc as a loan. Extending the term aims to make repayments less of a burden for buyers.

It had about 100 borrowers for units at Shwe Lin Ban before the change, but now has over 200, he said.

CHDB received its licence to begin operating in July 2013. Set up by the Ministry of Construction, it aims to give long-term loans for house buyers.

CHDB officials have said they aim to extend their offerings with other low-cost housing projects in Yangon.

Translation by Thiri Min Htun

Low-cost housing winners out of luckKO KO AUNGpmkokoaung@gmail.comHTIN LIN AUNGhtynlynnaung@gmail.com

We hope to open more to other liquor or beer imports in the future.

U Myo Min Aung Myanmar Retailers Federation

9BUSINESS EDITOR: Jeremy Mullins | jeremymullins7@gmail.com

Exchange Rates (May 5 close)Currency Buying Selling

EuroMalaysia RingittSingapore DollarThai BahtUS Dollar

K1185K300K805

K33K1087

K1215K315K825

K35K1093

KFC announced the location of its debut Myanmar outlet yesterday, as it gets closer to becoming the first major American fast-food chain to open in the country.

Its restaurant on Yangons Bo-gyoke Aung San Road, opposite Bo-gyoke Market and FMI Center, will be the first to sell its signature fried chicken. No opening date has yet been announced for the location.

Our hope is for KFC to become a welcome respite from the hustle and bustle of downtown and a place where people can connect and bond, said JR Ching, Yoma Strate-gic head of business development, in a press release yesterday.

KFC announced an agreement in October 2014 with Singapore-listed, Myanmar-focused Yoma Strategic Holdings to bring the restaurant chain to Myanmar.

Yoma Strategic plans to open several more locations in Yangon before the end of the year.

Mr Ching previously told The Myanmar Times it is also consider-ing further expansion in the coun-try at a later date.

He also said KFC will be an

aspirational product, targeting the growing middle class, when it launches locally. KFC is particular-ly well-known for the 11 herbs and spices used in its chicken recipe.

KFC will face several competi-tors in the local market, includ-ing South Korean chain Lotteria, which opened its first Yangon out-let in 2013 and has also expanded to Mandalay.

KFC claims to be one of the worlds largest restaurant chains, with US$23 billion in global sales and more than 19,400 restaurants in 120 countries.

KFCs first location will be on Bogyoke Aung San RoadJEREMY MULLINSjeremymullins7@gmail.com

AUSTRALIAS Roc Oil has withdrawn from the group which won the rights to shallow-water block M-7 last year, leaving its partners to discuss the blocks future, according to govern-ment officials.

Roc Oil and its partners Tap Oil and Smart E&P won the rights to the block in a 2014 bidding round for a total of 20 offshore blocks. Produc-tion Sharing Contracts, which govern resource exploration and extraction, have now been inked by the likes of Shell, Chevron and Total for the other 19 blocks, with only M-7 remaining to be finalised.

Roc Oil has pulled out of the bid-ding group. We are now restructuring procedures to move forward with the Production Sharing Contract, said a Ministry of Energy official, who de-clined to be named as he is not al-lowed to speak to the media.

The official said Rocs decision to pull out may be related to its pur-chase by a subsidiary of China-based Fosun International earlier this year, in a deal that saw Roc Oil de-listed from the Australian stock exchange.

De-listing means its owners dont want to make new investments, said the official. He added the Production Sharing Contract will now be signed with Tap Oil and its local partner.

Neither Tap Oil or Roc Oil had re-turned request for comment by yes-terday, though Tap Oils March 2015 quarterly report, released April 30, does confirm the move.

In April, Roc Oil advised the

[Ministry of Energy] and the joint venture that it has withdrawn from the bidding group. The remaining joint venture participants, Tap and Smart E&P International Ltd, its lo-cal joint venture participant, are in discussions with the [Ministry of Energy] regarding the award of the [Production Sharing Contract], it said.

Service company Smart E&P is one of Myanmars better-known oil and gas companies.

Smart chair U Kyaw Kyaw Hlaing said he had been aware for some time that the ownership of Roc Oil had changed hands.

We knew the Chinese company bought Roc Oil. But it has only been a month since we were informed by Roc that it is withdrawing from our group, he said.

Tap Oil has agreed to take over rights to block M-7 and to finalise pro-duction sharing terms and conditions with Myanmar authorities.

We have presented our partner-ship with Tap Oil for M-7 to Myanma Oil and Gas Enterprise, he said. Now we are waiting for their response to move on with signing the Production Sharing Contract.

Government officials had initially

hoped to have all 20 Production Shar-ing Contracts finalised by last month, though it will likely be June at the ear-liest before the government gives the adjusted partnership the official green light.

The shallow-water M-7 block is in the Mottama basin, covering some 13,000 square kilometres (5019 square miles). It lies near three of Myanmars four offshore sites that are in produc-tion, including Yadana and Zawtika.

The Myanmar Investment Com-mission issued permission in March to Roc Oil, Tap and Smart E&P to invest in M-7.

The future site of KFC on Bogyoke Aung San Road. Photo: Aung Htay Hlaing

Roc Oil backs out of last unsigned block

AUNGSHIN

koshumgtha@gmail.com

19Number of offshore blocks for which

Production Sharing Contracts have been signed though there is one more to go

Its two former partners are now re-negotiating the Production Sharing Contract with government authorities that will govern block M-7

Nay Pyi Taw

ThailandYangon

Yadana

Zawtika

Yetagun

M-07

Offshore platforms like this one are years or decades away for the 2014 winners of 20 offshore blocks though the Production Sharing Contracts are a necessary step. Photo: AFP

An artists impression shows what the KFC location will look like. Photo: Supplied

10 International Business THE MYANMAR TIMES MAY 6, 2015

AMERICAN fast-food icon McDon-alds, seeking to return the shine to its golden arches, unveiled a turnaround plan late on May 4 to combat sagging sales and shifting consumer tastes.

The global giant, which has lan-guished amid rising concerns about obesity and food quality, will sell off more company-owned restaurants to franchisees, restructure its interna-tional operations and cut costs.

The chain is also testing plans to let customers customise dishes and an experiment with all-day breakfast in the key US market.

The reality is our recent perfor-mance has been poor, chief executive Steve Easterbrook admitted.

This is a global turnaround. We have to modernise our approach and run the system differently.

The creators of the famed Big Mac said the chain would likely tweak core menu items, citing a March announcement to limit chick-en raised with antibiotics, which Mr Easterbrook said had been popular with customers.

The company vowed to become more transparent in response to con-cerns about food quality.

There are perceptions and there are misperceptions out there, Mr Easterbrook told an analyst confer-ence call. Consumers tastes are changing ... and therefore weve got to be seen to be moving with them.

The measures unveiled May 4 were billed as the first step in a turnaround.

In January, McDonalds an-nounced it was installing Mr East-erbrook as chief executive, replacing Donald Thompson, who was unable to reverse a trend of sliding sales.

With 36,000 outlets in over 100 countries, the chain has been under pressure from falling customer traffic, with sales falling 2.4 percent in 2014 to $27.4 billion.

It faces rising competition, not only from traditional rivals like Wen-dys and Subway, but from higher-end chains like Chipotle, Panera Bread

and Shake Shack, which went public in January by positioning itself as a burger chain with better-quality in-gredients.

Easterbrook highlighted the need to establish McDonalds as a modern, progressive burger company.

He said he would prod employ-ees throughout the system to push little more quickly and a little more accurately to improve the dining experience.

We all need to step up our game a bit, he said.

Among the bigger changes, the US fast-food burger giant said its over-seas markets will be organised by their maturity within the McDonalds system, rather than by region.

Its current structure splits mar-kets outside its home US market into Europe, Asia-Pacific, the Middle East and Africa.

McDonalds international lead

segment will unite mature markets such as Australia, Britain, Canada, France and Germany, which operate with similar economic and competi-tive dynamics.

The high-growth segment will be those with higher expansion poten-tial, including China, Italy, Switzer-land, Russia and South Korea.

Remaining regions will go into the foundational markets unit.

The new system will enhance communication between McDonalds officials in Australia and markets like Britain, with which it has more in common than a closer regional mar-ket, such as China.

In addition, McDonalds said the company would franchise 3500 res-taurants by the end of 2018, lifting the share of franchised units those not owned by the company from 81 per-cent to 90pc worldwide.

Mr Easterbrook said he became

a strong believer in franchising after growing the model in Britain from 35pc to 65pc franchised restaurants within five years.

That was just a really strong con-tributor to driving energy in the own-ership and accountability, he said.

Nevertheless, Larry Light, a for-mer McDonalds chief marketing of-ficer, criticised the plan as vague.

Based on this presentation, Id defy anyone to figure out what they want the brand to be when it grows up, Mr Light, now with marketing firm Arcature, told CNBC.

Analysts from Morgan Stanley said in a note that the plan makes sense to us as the only real way to fix the brand is to get more people to eat their hamburgers more often.

Dow member McDonalds shares dropped 1.0 percent to $96.85 in af-ternoon trade.

AFP

A replica of Ray Krocs first McDonalds franchise in Des Plaines, Illinois. Photo: AFP

NEW YORK

BRUSSELS SHANGHAI

MUMBAI

McDonalds announces plan to turn around flagging fortunes

INDIAN billionaire Sunil Mittals Bharti Retail will merge with rival Future Retail to create one of Indias biggest chains with more than 570 stores across the country, the com-panies said.

Two companies will be formed under the structure of the deal, which was approved by the boards of Bharti and Future, in a bid to take advantage of Indias fast-grow-ing retailing sector, they said in a statement.

Retail is emerging as the next big growth engine for India and we will be well-positioned to be a ma-jor player in this growth story, said Rajan Bharti Mittal, vice chair of Bharti Enterprises.

The merger is also expected to significantly reduce interest costs on debts of the existing firms, the statement added.

India has a fast growing retail sector thanks to an expanding mid-dle class, with another major player Reliance Retail controlled by one of Indias wealthiest people Mukesh Ambani selling everything from vegetables to electronics.

Bharti Retail is a unit of Mit-tals Bharti Enterprises, which runs 212 Easy Day convenience stores across India.

Future Retail has a combined 17 million square feet (1.6 million square metres) of retail space across supermarkets, apparel outlets and electronics stores.

Under the structure of the deal, a new entity called Future Retail will hold the combined store operations, comprising some 570 stores across more than 200 cities.

Another new entity called Future Enterprises will own the infrastruc-ture, investments and assets of both companies, the statement said.

AFP

Indian merger to create retail chain giant

THE EU yesterday sharply slashed its growth outlook for Greece this year due to its ongoing battle with its in-ternational creditors, dampening an otherwise improved outlook for the eurozone.

The Greek economy slumped se-verely in the first three months of the year, the European Commission said in its Spring forecasts, cutting its over-all 2015 growth outlook for Greece to 0.5 percent, a huge reduction from its earlier prediction of 2.5pc.

The sharp downturn in the state of the Greece economy will heap even more pressure on the radical leftist government of premier Alexis Tsipras to come to terms with its EU-IMF creditors, who are demanding radical reforms that Athens is so far refusing.

In light of the persistent uncer-tainty, a downward revision has been unavoidable for Greece, Pierre Mos-covici, the EUs Economic Affairs Com-missioner, told a news conference.

The EU predicted a strong re-bound of 2.5pc in 2016 for Greece but stressed that all its predictions were based on the assumption that Athens would reach a deal with its creditors when the extension of its current in-ternational bailout runs out at the end of June.

Greeces debt, already the highest in the eurozone, would meanwhile soar to 180.2pc of annual economic output this year, before falling slightly to 173.5pc in 2016, the EU said.

For the rest of the eurozone, cheap-er oil and a weak euro led the EU exec-utive to predict that the currency bloc would grow 1.5pc in 2015, better than the 1.3pc predicted in February.

The European economy is en-joying its brightest spring in several years, with the upturn supported by both external factors and policy meas-ures that are beginning to bear fruit, said Mr Moscovici, a former French

finance minister.But more needs to be done to en-

sure this recovery is more than a sea-sonal phenomenon.

The Commission forecast that the currency bloc would avoid much feared deflation this year, with con-sumer prices rising an albeit low 0.1pc in 2015, and then gaining momentum to 1.5pc in 2016.

Deflation can be dangerous, risk-ing to trigger a spiral of ever weaker demand, slowing the economy and pushing up unemployment.

The inflation data helps confirm that an unprecedented bout of mon-etary stimulus known as quantita-tive easing by the European Central Bank was taking effect despite the ob-jections of powerful Germany.

Greeces Tsipras government came to power in late January and has been at loggerheads with the EU and IMF ever since, holding up bailout cash and putting its economy on the brink of collapse.

Most worryingly, the EU predicted that the Greek public deficit would stand at 2.1pc this year, instead of a surplus.

Running a budget surplus is the key condition from the EU and IMF for the Greek bailout. AFP

Huge reduction in Greek growth

In light of the persistent uncertainty, a downward revision has been unavoidable.

Pierre Moscovici EU official

GERMAN industrial giant Siemens confirmed that Chinese regulators are looking into the business mod-el of its healthcare unit, but denied it was a corruption investigation.

Chinas healthcare sector is wide-ly considered to be riddled with graft, partly the result of doctors low salaries and an opaque tender-ing system for drugs.

Media reports said the State Ad-ministration for Industry & Com-merce (SAIC) and other regulators last year started initial inquiries into the medical device businesses of Siemens, Dutch firm Philips and General Electric of the United States on suspicion of bribing hospitals to gain sales.

Siemens said the SAIC was only examining its business model in China.

The fact is, a branch of [the] Ad-ministration of Industry and Com-merce in Shanghai is looking into Siemens Healthcares Laboratory Diagnostics marketing and business model, which is common worldwide in the industry, Siemens said in a statement.

Contrary to the recent media reports, the probe is neither corrup-tion-related nor related to any per-sonal benefits to individuals, it said in the statement late on May 4.

It is the latest reported example of overseas firms being targeted by Chinese authorities, who have launched wide-ranging probes in sectors ranging from autos to baby milk on issues from safety to corrup-tion to price-fixing.

The SAIC also specifically denied a bribery probe into the German firm, saying in a statement it has not opened a commercial bribery investi-gation into the Siemens company.

It did not mention any other com-panies by name.

In 2014 a Chinese court found British drugmaker GSK had used bribery to boost sales and took kick-backs from travel agencies to or-ganise conferences that never took place, according to previous reports by state media.

GSK was fined 3.0 billion yuan (US$480 million) last September af-ter a nearly year-long bribery probe.

AFP

Chinese authorities examine Siemens

Thai King makes rare public outingWORLD 14

Indonesia bans maids from working in Middle EastWORLD 14

12 THE MYANMAR TIMES MAY 6, 2015 13

World WORLD EDITOR: Fiona MacGregorNANTERRE

BOSTON

BEIRUT

KATHMANDU

GARLAND, TEXAS

Nepalese villagers shelter in makeshifts tents at Laprak village in Gorkha district in Nepal on May 4. US transport aircraft have started shuttling supplies and rescue teams to remote areas devastated by an earthquake that killed more than 7500 people.

Founder Le Pen suspended from National Front after row with daughter

Emotional scenes as Boston bombers relatives break down in court

FRANCES far-right National Front (FN) has suspended founder Jean-Marie Le Pen over a string of contro-versial remarks and amid a deepening feud with his daughter Marine, who now leads the party.

A disciplinary meeting of the party executive was called after the 86-year-old repeated comments stating that the Nazi gas chambers were merely a detail of history and said he wanted to defend the white world.

A special meeting of FN members will be called within three months to decide whether to strip him of the title of honorary president, the party said in a statement.

A furious Mr Le Pen described his suspension as a criminal act and said he wanted to disown his daugh-ter, ordering her to give up her name.

He warned party officials should expect him to use any means to fight the decision.

The far-right patriarch showed up on May 4 for a meeting at the FN headquarters in Nanterre, west of Paris, to discuss upcoming regional elections.

But he refused to stay for the disci-plinary hearing that was called by his daughter, who took over the leader-ship in 2011.

Mr Le Pen said the hearing was detrimental to my dignity.

He told reporters there was no question of his retirement, saying they will have to kill me to silence

him.On May 3, Marine Le Pen said that

her father no longer spoke for the an-ti-immigration party, which opposes Frances membership of the European Union.

Jean-Marie Le Pen should no longer be able to talk in the name of the National Front. His comments are against the fixed [party] line, she told French radio.

Marine Le Pen has been actively trying to distance the party from its racist and anti-Semitic image as she plans her bid for the next French pres-idential election in 2017.

The relationship between her and her father has been particularly rocky in recent months.

Six months ago, Ms Le Pen stormed out of her fathers house after his Do-berman dog savaged her Bengal cat to death.

Since his recent slew of controver-sial interviews, the remaining ties ap-pear to have snapped.

The elder Le Pen was conspicuous-ly dropped from a line-up of National Front leaders on stage during the par-tys traditional May 1 rally in Paris.

But determined to upstage his daughter, he nevertheless strode unin-vited onto the podium to take the ova-tion of the crowd.

I think that was a malicious act. I think it was an act of contempt toward me, Ms Le Pen said on May 3.

I get the feeling that he cant stand

that the National Front continues to exist when he no longer heads it.

In late April, French prosecutors said they would examine allegations that the FN founder hid 2.2 million euros (US$2.4 million) in a secret ac-count in Switzerland.

Jean-Marie Le Pen has also been under investigation since 2013 over a 1.1-million-euro discrepancy between his 2004 and 2009 asset declarations.

A separate probe also under way focuses on FN campaign financing since Ms Le Pens takeover in 2011, with five people and the events com-pany Riwal already charged. The party has also been referred to the EUs anti-fraud agency.

The spat between father and daughter broke out last month after Mr Le Pen repeated earlier comments about the Nazi gas chambers and praised Frances World War II leader Philippe Petain, who collaborated with the Nazis.

His daughter called the comments political suicide and said she would not support her fathers bid for the re-gional polls.

It was announced that his 25-year-old granddaughter Marion Marechal Le Pen, who is already a member of parliament, would stand in his place.

Under Marine Le Pen, the FN has enjoyed a series of election successes, notably coming first in last years Eu-ropean elections. AFP

DZHOKHAR Tsarnaev, the Boston bomber, showed emotion in court for the first time on May 4, wiping his eyes as a distraught aunt was removed from the courtroom, too overcome to testify.

A jury is mulling whether Ms Tsar-naev, who was found guilty last month of all counts related to the April 15, 2013, attack on the Boston Marathon that killed three people and wounded 264 more, should be sentenced to death or life in prison without parole.

Last week, his defence team began presenting evidence in a bid to save his life, and had arranged for his aunt, 64-year-old Patimat Suleimanova, to come from Russia to testify.

But the woman, her voice choked with sobs, was only able to tell the court her name, age and where she was from before she had to step down and was escorted from the courtroom.

Mr Tsarnaev, a 21-year-old US citi-zen of Chechen descent, took a tissue and appeared to quickly wipe away tears.

Testimony from four other female members of Mr Tsarnaevs family who travelled to the United States about 10 days ago and are being housed at an undisclosed location, dominated the May 4 proceedings.

Two of his cousins born in Dag-estan in southern Russia had earlier taken the stand, with one describing Mr Tsarnaev as a kind-hearted young boy who cried while watching the Dis-ney animated film The Lion King.

He was very kind, very warm. His kindness made everybody kind, said

Raisat Suleimanova, a 35-year-old nurse who now lives near Moscow. Her testimony was translated from Russian into English by an interpreter for the court.

She described Mr Tsarnaevs some-what-nomadic childhood. His par-ents moved often, from Kyrgyzstan to Chechnya to Dagestan.

Mr Tsarnaev and his brother Ta-merlan, who was shot dead by po-lice in the days after the marathon bombings as the pair attempted to evade capture, virtually lived out of their suitcases, changing schools and friends often.

She also offered a glimpse into the life of their mother, Zubeidat Tsar-naeva, who loved fashion and jewel-lery before she moved to the United States. Jurors were shown photos of the woman, in a fur coat or in form-fitting clothes and sunglasses.

But in 2010, when Ms Suleimanova saw her again, Ms Zubeidat was wear-ing the hijab.

It was a shock, knowing the kind of person she used to be, Ms Sulei-manova testified, noting that the fam-ily had been kind of removed from their Islamic faith.

Ms Suleimanovas sister Naida also testified, saying of Mr Tsarnaev, He was very cute, very nice, very kind. He always had a smile on his face.

Mr Tsarnaev loved his older broth-er, Naida told the court.

There is a custom in our family, to always listen to your older sibling ... and follow his example.

Mr Tsarnaevs lawyers have sought throughout the trial to portray 26-year-old Tamerlan Tsarnaev as the mastermind of the attacks, alleging he manipulated his frightened younger brother.

Naida Suleimanova also expressed her concerns about the sharp changes in Ms Tsarnaevas appearance, saying it was unusual for the women in their family.

When confronted with Tamerlan Tsarnaevs hatred of the treatment of Muslims and his wish to see the creation of an Islamic caliphate, she replied, Our parents didnt teach us those things.

Two other of Tsarnaevs aunts tes-tified, as did two of his female high school friends.

The defensc is expected to spend around two weeks presenting wit-nesses testifying on their clients behalf. AFP

Dzhokhar Tsarnaev appears in a court handout photo issued on March 23. Photo:AFP

ONE of the men shot dead by po-lice when he and an accomplice at-tempted to storm an event hosted by an anti-Muslim group in Texas was investigated by the FBI over alleged plans to wage holy war, court docu-ments show.

Investigators were delving into the backgrounds of the two suspected Islamist gunmen. The pair, who were roommates according to the Los An-geles Times, opened fire with assault rifles on May 3 outside the controver-sial exhibit of cartoons depicting the Prophet Mohammed.

A quick-acting Texas policeofficer shot the two suspects before they were able to enter the venue in Gar-land, a suburb of Dallas.

There was no confirmed claim of responsibility for the failed attack, but several US media identified the shooters as 31-year-old Elton Simp-son and 34-year-old Nadir Soofi.

The pair shared an apartment in Phoenix, Arizona, the LA Times said, and CNN broadcast footage of FBI agents raiding the alleged address.

In court records seen by AFP, Mr Simpson was sentenced to three years probation in 2011 after FBI agents presented a court with taped conversations between him and an informant discussing travelling to So-malia to join their brothers waging holy war.

The prosecution was unable to prove that Mr Simpson had commit-ted a terror-related offense, but did establish he had lied to investigators when he denied having discussed go-ing to Somalia.

Private terror watchdog SITE said that at least one Twitter ac-count linked to a known militant of the Islamic State jihadist group has claimed the attackers as sympathis-ers. But Mr Simpsons father said his son had simply made a bad choice.

The White House said that Presi-dent Barack Obama had been briefed on the investigation, which Texas po-lice said was ongoing.

There is no form of expression that justifies an act of violence, White House spokesperson Josh Ear-nest said.

Texas Governor Greg Abbott said

that investigators were looking into the assailants ties to organised ter-rorist activity.

The American Freedom Defense Initiative, a group listed by civil rights watchdog the Southern Poverty Law Center as an anti-Muslim hate group, had organised the event, which drew about 200 people.

At the event, attended by Dutch far-right politician Geert Wilders and AFDI co-founder Pamela Geller, sup-porters held an exhibition of entries to a competition to draw caricatures of the Prophet Mohammed.

Many Muslims find drawings of the prophet to be disrespectful or outright blasphemous, and such car-toons have been cited by Islamists as motivation in several previous at-tacks.

AFDI had offered a US$10,000 prize for the winner of the contest, which was billed as a free speech event.

Police said two men wearing body armour and toting assault rifles drove up to the conference, jumped out and opened fire on an unarmed security guard.

Garland police spokesperson Joe Harn told reporters the guard was shot in the ankle and that a traf-fic police officer in the vicinity re-sponded, taking down the two armed assailants.

Commentators were quick to draw parallels to a January mass shooting at the French satirical weekly Charlie Hebdo in Paris that killed 12 people and wounded 11 more.

There is absolutely no compari-son, Jean-Baptiste Thoret, the maga-zines film critic who only avoided the attack because he had been late for work, told Charlie Rose on PBS, ac-cording to an advance transcript May 4.

You have a, as you said, a sort of anti-Islamic movement [in Texas] ... The problem of Charlie Hebdo is absolutely not the same, added Mr Thoret, flanked by Gerard Biard, chief editor of the magazine.

Mr Biard added, We dont organ-ise contests. We just do our work. We comment on the news. When Mo-hammed jumps out of the news, we draw Mohammed.

But if he didnt, we didnt. We dont. We fight racism. And we have nothing to do with these people.

On Twitter, jihadist Abu Hussain Al-Britani, whom SITE identified as British IS fighter Junaid Hussain, described the gunmen as two of our brothers.

But Mr Simpsons father Dunston told ABC News that his son, who he said worked in a dentists office, had made a bad choice.

We are Americans and we believe in America, Dunston Simpson said. What my son did reflects very badly on my family.

Mr Wilders told AFP in an e-mail that he was concerned he may have been targeted because he, like one of the Charlie Hebdo cartoonists killed in January, is on a h