June 2013

Editors Note
It has been exciting times in Myanmar as of late. Since political and

economic reforms got underway in earnest in 2012, international attention has
been focused on this country to a greater extent than perhaps at any time in its
recent history. There are many reasons to be excited: economic reforms promise
to make doing business easier and more transparent, and new political freedoms
have brought about a spirited debate on Myanmars future. Foreign investors are
keen to get a slice of Myanmars newly available economic pie, and if investment
is managed and regulated in a transparent and constructive manner, it has the
potential to lift millions out of poverty.
But despite a climate of cautious optimism, Myanmars future trajectory
remains difficult to gauge. Corruption and impunity remain serious problems, and
it remains to be seen whether the countrys legal system and skeletal infrastructure
will be able to cope with a flood of foreign capital. Lingering ethnic issues and
bouts of violence in recent months have done little to bolster investor confidence.
Much of the international interest in Myanmars economic resurgence has been
speculative in nature, as foreign investors are wary of making large-scale moves
into a country where misinformation and uncertainty rule the day.
Acumen seeks to be a reliable source of information and in-depth analysis
on business issues in Myanmars rapidly evolving investment climate, and to act
as a bridge between local businesses and their counterparts in other countries.
Long-isolated from the global economy, Myanmars business community has much
to bring to the table of global commerce, and is actively seeking out international
partnerships to that end. Acumen is the only monthly magazine in Myanmar
dedicated to long-form, in-depth reporting on commercial issues, and is particularly
focused on the personalities and ideas that are fuelling Myanmars economic
opening. In this inaugural issue, we touch on a wide range of subjects, including
the future of sanctions, the pitfalls and prospects for tourism development, and
how information technology will shape Myanmars future.
Myanmar faces an uncertain road ahead, but despite the profound issues
facing the country today, its future has arguably not looked as bright in decades.
Acumen looks forward to documenting that journey, and bringing Myanmars
story to the world. A
CEO / Chief Editor
Dr. Htet Zan Linn
Director
Dr. Hein Thu Aung, Tin Tun Kyaw
Executive Editor
Phyo Wai
Editor English Edition
Alex Bookbinder
Editors
Hein Zaw, Khin Win, Su Le` Nandar
Reporters
Tha Toe Aung, Nang Aye Chan Moe
Designers
Aung Aung (AN Computer), Thaw Tar Oo
Computer Operator
Zin Wai Wai Shein
Marketing Department
January Khine Mon, Naw Keziah, Yadanar,
Nan Mo
Photographers
Black Dream, Aung Kyaw Moe (New Image),
Han Saw, Alex Bookbinder, Christopher Symes,
Nang Aye Chan Moe
Publisher and Copyright
Dr. Htet Zan Linn
Printer
Editorial Board
ACUMEN
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editor@myanmarb2bmagazine.com, marketing@myanmarb2bmagazine.com,
Advisors Advisors Advisors Advisors Advisors
Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet Prof. Dr. Aung Tun Thet (Senior Advisor, UN Resident Coordinator's Office)
Dr. Maung Mg Thein Dr. Maung Mg Thein Dr. Maung Mg Thein Dr. Maung Mg Thein Dr. Maung Mg Thein (Ph.D. (Law), LL.M., LL.B., B.A.(Law), ANZIIF (Australia), Pg. Dip in Applied Psychology)
Prof. Maw Than Prof. Maw Than Prof. Maw Than Prof. Maw Than Prof. Maw Than (Rector (Ret), Yangon Institute of Economics Yangon)
Soe Tint Aung Soe Tint Aung Soe Tint Aung Soe Tint Aung Soe Tint Aung (Special Consultant for Advocacy, PSI Myanmar)
Dr. Tun Lwin Dr. Tun Lwin Dr. Tun Lwin Dr. Tun Lwin Dr. Tun Lwin (Consultant, Myanmar Climate Change Watch,Tun Lwin Foundation)
Than Lwin Than Lwin Than Lwin Than Lwin Than Lwin (Deputy Governer (Ret), Central Bank of Myanmar)
Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw Tin Zan Kyaw (Principal, Device Business Management Academy)
Grace Swe Zin Htaik Grace Swe Zin Htaik Grace Swe Zin Htaik Grace Swe Zin Htaik Grace Swe Zin Htaik (Media Advocacy Advisor, PSI Myanmar)
Office
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Tel : (+959) 420033355
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ACUMEN 11
In order to remove
vested interests that
take advantage of the
political system and
economy, we warn that
the government wi l l
have to enforce the
rules according to the
constitution and exist-
ing law.
U Thein Sein
President
Republic of the Union of
Myanmar
The Flower News ( VOL-9,
No. 14) . . . .:.- ~.~
~ .~ . ~ ~ .|.~:.|~ ~._.
. .... ~....~:.._
. . . .~: .. ~- ~ . . . . .
~ ~. ._.~: ~ . . :.._
e .. ~._.:_~:.'',
We dont want to blame anybody, but we are looking for
answers.
Daw Aung San Suu Kyi
Chairperson
National League for Democracy, Member of Parliament
The Flower News ( VOL-9, No. 14) ..~.q......q... ~,:~~:.q:'',
In order to develop SMEs in
Myanmar which currently account
for 90% of industrial production we
are now considering the establish-
ment of a credit guarantee corpora-
tion to give these firms easy access to
loans.''
Dr. Maung Mg Thein
Vice Minister
Ministry of Finance and Revenue
Weekly Eleven News ( VOL-8, No.26) .....~:..~e ~._.~.~:.q, ..
.,._~:. .'',
"Teak production in Myanmar has always been an important
source of revenue. But illegal logging now accounts for almost the
same amount as timber felled legally. We need to enforce the rules
to stamp out corruption."
U Win Htun
Ministry of Environmental Conservation and Forestry
Pyidaungsu Daily Newspaper (Vol-1, No.2) ~, ... .:.~ _._ ~ . ._~q:.~. _., ~_ ~. ._.. . ...._ '',
oices
V
News in Brief
A group of local tourism entrepreneurs
have submitted a proposal to the
government suggesting that licenses for
tour companies be granted to 100%
Myanmar-owned compani es onl y.
According to recently enacted foreign
investment laws, foreign companies are
allowed to enter into joint ventures with
domestic companies in the tourism
industry, and some tour operators want
to see this provision revoked. If a family
owns only a cart, they can do business
with the cart on a manageable scale. If
they own only a car, they can work by
using that car. We are able to keep things
manageable as it is. Why do we want to
allow foreigners in when we can develop
the tourism sector on our own? said U
Aye Kyaw, the managing director of
Ruby Land Travels and Tours, at a
tourism seminar held at the Royal Rose
Hal l on March 16. Most t ouri sm
entrepreneurs in attendance were of the
opinion that only local entrepreneurs
The much-vaunted American pivot to Asia
a comprehensive package of diplomatic
and military engagement with the worlds
largest continent, as announced by President
Barack Obama 2011 marks a significant
shift from an American focus on the Middle
East for the past decade and a half. To
discuss the geopolitical and security
implications of this shift, the Asia
Foundation brought noted Indian academic
C. Raja Mohan to Myanmar on a speaking
tour to engage with local opinion leaders,
including an engagement at the headquarters
of the Union of Myanmar Federation of
Chambers of Commerce (UMFCCI) on
March 13. Mohan, the director of Strategic
Studies at the New Delhi-based Observer
Research Foundation, is a well-respected
analyst on Asian security issues. In his talk,
he discussed Myanmars changing strategic
landscape within the context of an
increasingly assertive China and India vying
for power with each other and the United
States, and focused particularly on the role
of India as an ambiguously Asian power
due to its distance from traditional centres
of power in East Asia. A
14 ACUMEN www. mya nma r b2bma ga z i ne. c om
June 2013
should be granted tour operator licences,
fearing that foreign companies would try
to influence the tourism industry in
counterproductive ways. It wont happen
at once, but it is very likely to happen at
some point. Foreigners tend to exert
influence when they come into a country,
and gradually come to hold more sway
over domestic industries than they
should, said Dr. Zaw Moe, the managing
director of Myanmar Orient Pacific
Travel Agency. Of course, I dont mean
all foreigners, only some, he added.
Based on the attendees suggestions, a
proposal to only give licenses to one-
hundred-percent Myanmar-owned
compani es wi l l be submi t t ed t o
Parliament for review. The Department
of Travels and Tours licences more than
one thousand companies owned entirely
by Myanmar citizens, seven joint
ventures, and one entirely foreign-owned
company. A
Tour operators propose protectionism Tour operators propose protectionism Tour operators propose protectionism Tour operators propose protectionism Tour operators propose protectionism
Asias security Asias security Asias security Asias security Asias security
balance is changing: balance is changing: balance is changing: balance is changing: balance is changing:
Prominent academic Prominent academic Prominent academic Prominent academic Prominent academic
C. Raja Mohan visits C. Raja Mohan visits C. Raja Mohan visits C. Raja Mohan visits C. Raja Mohan visits
Myanmar Myanmar Myanmar Myanmar Myanmar
Under t he auspi ces of Myanmar
Pharmaceutical & Medical Equipment
Entrepreneurs Association (MPMEEA),
the first Myanmar Health Expo was held
On March 1, 2013, a seminar involving
management experts from around the
world was held at the Sedona Hotel in
Yangon. Competence is the key to an
organizations success or failure, claims
Argus Ang, the CEO of the Singapore-
based RVi Institute and a speaker at the
seminar. Successful organizations regard
human resources as the most important
and val uabl e component of an
organization, he said. Successful
businesspeople know to trust experience
and value employees that have a proven
track record of successes. The seminar
was intended to enable human resource
officers from various backgrounds to
learn international best practices with
regards to HR, and participants thought
that it prepared them well to tackle the
ACUMEN 15
at Yangons Tatmadaw Hall on February
22, 2013. The expos objectives included
improving the governments ability to
provide quality healthcare through
introducing advanced medical equipment
to Myanmar, as well as increasing the
accessibility of pharmaceuticals. The
organizers also sought to provide a forum
for healthcare professionals to network,
and for foreign-backed private hospitals
to advertise their services to Myanmars
healthcare industry.
Western medicines and medical
equipment were on display, as well as
booths from local and foreign health care
providers. There were also a number of
panel discussions and presentations on
healthcare-related issues. The expo
proved extremely popular, as it was the
first such event of its kind in Myanmars
history. A
First health expo held in Yangon First health expo held in Yangon First health expo held in Yangon First health expo held in Yangon First health expo held in Yangon
Seminar held on organizational success Seminar held on organizational success Seminar held on organizational success Seminar held on organizational success Seminar held on organizational success
problems and challenges associated with
HR management in Myanmars rapidly
evolving business climate.
Among the participants were two
consultants from US-based firm Mercer,
which specializes in human resources
development, as well as management and
training professionals from Singapore.
The seminar was attended by Robert
Chua, the Singaporean ambassador to
Myanmar, Director-General of Myanmars
Ministry of Labour, Employment and
Social Security, as well as many local
entrepreneurs. A
June 2013
Cover Story
June 2013
ACUMEN 17 ACUMEN 17
June 2013
American businesses are keen to in-
vest in Myanmars long-moribund econ-
omy, but until domestic regulations are
significantly strengthened, Western sanc-
tions will remain a vital tool to prevent
corruption and human rights abuses in
business transactions.
Conference organisers were unpre-
pared for the turnout when the US Cham-
ber of Commerce (USCC) came to down-
town Yangon on February 25. The head-
quarters of the Union of Myanmar Fed-
eration of Chambers of Commerce and
Industry (UMFCCI) was filled to capaci-
ty with business leaders, journalists and
prospectors of all stripes. We dont have
enough programmes to go around
were down to the last few, said the
clearly exasperated UMFCCI staffer be-
hind the press desk. We just didnt ex-
pect so many people to show up.
The signing of a memorandum of
understanding between American and
Myanmar business leaders would have
been unthinkable only a short while ago,
yet here was UMFCCI president U Win
Aung awkwardly shaking hands with
Jose Fernandez, the US Assistant Secre-
tary of State for Economic and Business
Affairs, amid a hail of camera flashes and
Cover Story
The joint summit between the US Chamber of Commerce and the UMFCCI, entitled US-Myanmar Trade and
Investment Relations: The Path Forward, was held at UMFCCI headquarters in Yangon on February 25.
ACUMEN 19
applause. For all the talk of progress and
cooperation, the carefully scripted rap-
port between the American commercial
establishment and the UMFCCI belies a
more complicated reality.
Although the US suspended most
financial sanctions against Myanmar in
April of last year, the Office of Foreign
Assets Control (OFAC) an agency of the
US Treasury Department maintains a
list of Specially Designated Nationals
(SDNs), individuals with which US citi-
zens and permanent residents are not
allowed to do business. The US has cho-
sen to maintain this blacklist as part of a
careful and calibrated easing, as
Fernandez put it.
The fact that Asian countries never im-
posed trade sanctions on Myanmar has
given Asian companies a huge head start
in taking advantage of its economic op-
portunities, leading American business
leaders to complain they have been cut-
out of the Myanmar gold rush. Despite
these concerns, there is an important eth-
ical and business case to be made for
maintaining targeted sanctions against
the worst cronies of the former military
regime, even if comprehensive financial
sanctions have been suspended. While
foreign investment is necessary for eco-
nomic development to take root, the race
to secure a slice of Myanmars economic
potential risks becoming a race to the
bottom.
Weak regulations and monitoring
standards in Myanmar make it easy for
companies to disregard environmental
and ethical principles. A lack of internal
capacity to deal with these issues rein-
forces the need for external mechanisms
to help promote minimally acceptable
standards. In an interview with the As-
sociated Press, Fernandez said that the
SDN list was valuable due to lingering
concerns about human rights abuses, as
well as continued political prisoners,
continued military ties to North Korea
and corruption.
Fernandez made cautious reference
to these concerns in his address to the
UMFCCI: We want US companies to in-
vest here, but we want them to do so in
a socially and environmentally respon-
sible manner, he said. As a result, weve
Among the names is U Win Aung,
who, aside from his position at the UM-
FCCI, is chairman of the Dagon group, a
sprawling conglomerate with close
t i es to Myanmar s former military
government. Other Western countries,
including Australia, Canada, and the Eu-
ropean Union, maintain their own lists
of targeted sanctions that differ slightly
from Washingtons.
The fact that Asian
countries never im-
posed trade sanctions
on Myanmar has given
Asian companies a
huge head start in
taking advantage of its
economic opportunities,
leading American busi-
ness leaders to com-
plain they have been
cut out of the Myanmar
gold rush.
June 2013
paired our [easing of] sanctions with
reporting requirements that [have] nev-
er been included in US law for other
sanctions. These reporting requirements
are to encourage responsible investing,
including with regard to promoting trans-
parency.
Western media analysts noted that
the conference itself could be interpret-
ed as being in breach of official sanc-
tions policy, but few in the USCC dele-
gation appeared concerned. While the
Obama administration intends to keep
targeted sanctions for the time being, the
USCC has publically advocated for all
remaining sanctions to be dropped.
Were encouraging reform in the gov-
ernment, we cant encourage reform in
individuals? said Richard Vuylsteke, the
president of the American Chamber of
Commerce in Hong Kong, a USCC affili-
ate, in a December 2012 interview with
AP. Maintaining sanctions while deep-
ening links with the nominally civilian
government is counterproductive, he
claimed, as dropping targeted sanctions
would give these guys [listed business
tycoons] an incentive to integrate into
the system.
Just what kind of system these tar-
geted individuals would be integrated
into, however, is a big question. Despite
reforms, Myanmar remains one of the
most corrupt countries on earth, ranking
fifth from bottom in Transparency Inter-
nationals most recent Corruption Percep-
tions Index. A lack of institutional ca-
pacity will prevent the government from
addressing the problem of unethical and
corrupt business practices, underscoring
the need for external compliance mech-
anisms like the SDN list.
The reporting requirements men-
tioned by Fernandez apply to any com-
pany maki ng new i nvestments of
US$500,000 or more in Myanmar. Inves-
tors will be required to submit annual
reports to the State Department, detail-
ing information regarding policies and
procedures with respect to human rights,
workers rights, environmental steward-
ship, land acquisitions, arrangements with
Cover Story
The Capitol Building in Washington, D.C. - smaedli/Flickr.
ACUMEN 21
security service providers, and, aggre-
gate annual payments exceeding $10,000
to Burmese government entities, includ-
ing state-owned enterprises, according
to a joint State Department-Treasury
statement from July 2012. But the Myan-
mar government is ill-equipped to en-
force such standards, and accurate re-
porting standards are very difficult for
the US government to enforce from afar.
A comprehensive March 2013 report
on the rule of law in Myanmar, by Wash-
ington, DCbased consulting firm Perseus
Strategies, found that President U Thein
sectors. These are precisely the areas in
which state oversight is unlikely to ex-
tend in the short term.
The desire to shed the regulations
that have shackled American business
interests in the past are likely to out-
weigh concerns over human rights is-
sues. Tami Overby, the USCCs vice-pres-
ident for Asia, made no mention of ex-
isting sanctions in her address. I use
the term normalisation very intention-
ally, she said in her opening remarks.
After all, were simply moving to a place
where we will have the same diplomat-
Sein and his allies are interested in mak-
ing genuine reforms; however, many
government institutions are quite fragile
and the role of the military remains
opaque, leading the authors to claim that
in the near term, reforms are likely to
be institutional/legal and, with the ex-
ception of greater civil and political rights
in large cities, not felt by the vast major-
ity of the population of the country.
Myanmars underdeveloped economy is
dominated by extractive industries and
agricultural production, and listed indi-
viduals have significant interests in these
The US Chamber of Commerce building in Washington. The Chamber routinely supports deregulatory
policies, both at home and abroad. - Elvert Barnes/Flickr.
June 2013
ic and commercial partnerships as we
do with all our other ASEAN partners
[m]aybe we should call this the New
Normal.
For the USCC, a momentum has
started that they clearly wish to see con-
tinue. Overbys address offered an ebul-
lient assessment of Myanmars reform
process. It is now time for Myanmar and
the United States to take their relation-
ship to the next level. It is important that
our efforts here today begin to yield con-
crete trade and investment achieve-
ments, she said. Were still in the early
stages, and the reform agenda ahead is
massive, but theres a real sense of mo-
mentum, as evidenced by the large turn-
out here today, which we must sustain.
The USCC is the single largest lob-
bying organization in Washington, and
has overwhelmingly supported anti-reg-
ulation politicians affiliated with the far-
right-wing of the Republican party since
1997, when its current president and
CEO, Tom J. Donohue, took office. Ac-
cording to its website, the USCC has
one overarching mission to strength-
en the competitiveness of the U.S. econ-
omy, and spends tens of millions of dol-
lars on campaign donations and adver-
tising each election cycle.
Although it tries to portray itself as
an advocate for small businesses, the
USCC derives the vast majority of its
funding from major corporations. As a
non-profit organization, it is not required
to disclose its donor base under US law,
although a 2010 investigation by the New
York Times found a litany of contribu-
Cover Story
It is now time for Myanmar and the United States to
take their relationship to the next level. It is important
that our efforts here today begin to yield concrete
trade and investment achievements.
ACUMEN 23
tions from financial, chemical and ener-
gy companies pushing for deregulation
in their respective industries.
The USCCs lobbying goals are not
limited to weakening regulations in the
United States alone. On the agenda is
reform of the Foreign Corrupt Practices
Act (FCPA), long the bane of American
multinationals operating abroad. Al-
though it has been part of US law since
1977, the US Department of Justice and
the Securities and Exchange Commission
have pursued FCPA prosecutions with
increased zeal over the past decade. At
its core, the FCPA prohibits American
firms or American-linked entities from
bribing foreign officials abroad. Many
contributors to the USCCs coffers have
fallen afoul of FCPA enforcers in recent
years including Chevron, which has
extensive interests in Myanmar.
Countries with highly transparent
regulatory environments still attract the
most foreign investment, but, perverse-
ly, there are incentives for multination-
als to engage in corrupt practices in coun-
tries that are unable or unwilling to crack
down on them. A recent study by three
US-based academics found that highly
corrupt states are more attractive to for-
eign investors than moderately corrupt
ones. In a New York Times op-ed pub-
lished in late January, Michael S. Paga-
no, a professor at Villanueva University
and one of the studys authors, explained
that potential investors know who is in
charge in highly corrupt states and plan
accordingly. In moderately corrupt coun-
tries, he elaborates, it is unclear who
is in charge and how to play the game.
The cost of doing business increases
when US authorities intrude, so it is lit-
tle wonder that reform of the FCPA is
high on the USCCs agenda. Corrupt prac-
tices make good business sense if com-
panies are not penalized for engaging in
them.
The USCC has criticized the FCPA
for its vagueness, claiming it leaves busi-
nesses unsure as to whether their prac-
tices are in violation of the Act, and gives
regulators carte blanche to assume bad
The United States has shown increased interest
in Myanmar since economic and political reforms
started in 2011 - East Asia and Pacific Media
Hub/Flickr
June 2013
faith in their investigations. In response,
the US government released a 130-page
resource guide to help with compliance
efforts. Despite Washingtons attempt at
improving clarity, the USCC is pushing
for reforms that would substantively
water down the FCPAs deterrent effects.
avoid bribing foreign officials if they can
claim ignorance.
The USCC has also advocated that
companies accused of FCPA violations
get a fresh start if they are bought out,
absolving the companies that buy them
of FCPA-related penalties. This makes a
mockery of the notion that companies
should do due diligence on potential ac-
quisitions, and, with a bit of creative le-
gal sleight-of-hand, could allow for com-
panies to change their ownership struc-
ture in order to pardon themselves.
Despite Fernandez claim that
American businesses act as responsible
partners in the countries that they invest
in, and that this is an integral part of
US corporate culture, the USCCs efforts
to undermine anti-corruption legislation
tell a different story. Corporate dissatis-
faction with the existing rules, coupled
with a Myanmar government that is - at
best - incapable of enforcing ethical busi-
ness standards, highlights why targeted
sanctions will remain important tools to
promote transparency and ethical stan-
dards in the short term.
There is evidence to suggest that
the American carrot-and-stick approach
has prompted some listed companies to
change their behaviour. While listed en-
tities have plenty of Asian partners to
work with, normalized economic rela-
tions with the US serve as an important
seal of international legitimacy. The os-
tensible reform of Max Myanmar Group,
one of the most notorious land-grabbers
under the old government, serves as a
case in point.
Max Myanmar and its CEO, U Zaw-
Zaw, are still listed by OFAC, and the
company has routinely made use of land
confiscated by the military from small-
hold farmers without compensation
across the country. An April 2009 report
from Karen Human Rights Group details
the companys seizure of 120 acres of
land in Thaton district of Mon State, de-
stroying the livelihoods of farmers who,
as the report notes, will potentially have
to apply to work for Max Myanmar in
Cover Story
In a 2010 booklet, the USCC pro-
posed the FCPA be amended by adding
a compliance defence clause, that would
allow American companies to deny lia-
bility for corruption if it is committed by
local employees or foreign subsidiaries
without the companys direct knowledge.
In practice, this would give companies
much more scope to deny responsibility.
The USCC claims that companies
should not be held accountable for indi-
vidual employees or subsidiaries paying
bribes if they can demonstrate to law
enforcement that they have made a good-
faith effort to implement suitable anti-
corruption mechanisms internally. In
practice, however, this will prompt com-
panies to develop impotent and superfi-
cial anti-corruption programs, which will
provide no incentive for companies to
Villagers protest land confiscation at
problem across the country. -
Max Myanmar and its CEO, U
ZawZaw, are still listed by
OFAC, and the company has
routinely made use of land con-
fiscated by the military from
small-hold farmers without
compensation across the country.
ACUMEN 25
over 500 individual complaints about
disputed ownership of some 250,000
acres, according to an Irrawaddy report
from March 2013. And despite the for-
mation of a parliamentary committee to
look into land tenure issues in June 2012,
land grabs remain an ongoing problem.
As if historical claims were not enough,
land disputes are turning violent: a late
February clash over land tenure issues
in Maubin Township, Ayeyarwaddy
Division, left one policeman dead and
40 villagers injured.
But there is evidence to sug-
gest that local companies know this
cannot continue. In a surprise move
last December, Max Myanmar paid
13 farmers in the Ayeyarwaddy Delta
US$838,000 for 106 acrecs it had
seized in 2008 (an incident unrelat-
ed to the recent violence in Maubin),
and pledged to give similar compen-
sation to victims of the Dagon Seik-
kan land grab. While this is only a
token acknowledgement of wrong-
doing, it at least establishes that the
company is aware of the need to
reform its practices. However, until
Max Myanmar proves that it has
made a concerted effort to improve
its old habits - a process that may
take a number of years - it would be
premature to remove targeted sanc-
tions entirely, as the states ability to
act as a watchdog will be weak for the
foreseeable future.
Despite U Win Aungs exhortation
that that total lifting of sanctions can
only enable investors to come and in-
vest without any hesitation in our new
era of new economic development, tar-
geted sanctions can help promote respon-
sible business practices. When foreign
multinationals are all too eager to take
advantage of Myanmars corrupt and
unregulated business environment, the
rationale for preventing them from part-
nering with corrupt business interests
becomes much more important. A
Letpadaung in Upper Myanmar. Land tenure issues remain a contentious
Christopher Symes
order to support their families. Another
massive land grab in Yangons Dagon
Seikkan township, involving 16 compa-
nies including Max Myanmar, displaced
thousands of residents who were offered
as little as K 20,000 (US$22.50) per acre
for their land, according to a July 2012
report by Eleven Media.
These incidents represent a minis-
cule proportion of the land seized under
the former government. In the first month
of the committees existence, it received
June 2013
Feature
W
hen Eric Schmidt
tal ks, the worl d
listens. One of the
most promi nent
tech executives of the past decade, he
transformed Google from a successful
start-up into one of the worlds most
influential companies during his 10-year
tenure as the companys de-facto CEO.
Having relinquished his day-to-day role
running the company in 2011, Schmidt
has become Google s international
ambassador of sorts, spreading a message
of openness and connectivity to the
frontiers of the global Internet.
Schmidt came to Yangon on March
22 to di scuss the chal l enges and
prospects of information technology
development in Myanmar with young
future leaders activists, entrepreneurs
and engineers before jetting off to
Naypyidaw in the afternoon for talks with
government officials. His appearance in
Myanmar is the latest in a recent run of
visits to emerging markets, including
Afghanistan, Pakistan, India and Sub-
Saharan Africa. Most prominently, he
paid a controversial visit to North Korea
in January in an attempt to convince its
leaders of the benefits of entering the
information age.
In many respects, Myanmars ICT
infrastructure is hardly better than North
June 2013
ACUMEN 29
Koreas. According to a February 2013
report by the Open Technology Fund,
less than 1% of Myanmars population
has access to the Internet, the second-
lowest penetration level in the world
after East Timor. Only 2% of Myanmars
population owned a cell phone in 2011
according to the International Telecom-
munications Union a lower rate than
even North Korea.
By addressing the challenges facing
the development of the ICT sector in
Myanmar, Schmidt showed his stripes as
a true believer in the power of the
Internet to change societies and lives for
the better. Your government has made
an incredibly important decision to open
up the country to foreign ideas, to the
Internet, to your own newspapers, he
told the crowd. These are exciting
developments. But theres one more thing.
The Internet will make it impossible to
go back.
Schmi dt hi ghl i ght ed how t he
Internet promotes democratic accoun-
tability, so long as it is unfettered and
easily accessible. Try to keep the
government out of regulating the Internet,
he told the audience to rapturous
applause. Every government I know
only wants nice things on the Internet.
Every politician I know only wants nice
praise [about them] on the Internet. He
underscored the power of the Internet
to promote transparent and accountable
governance, but warned that governments
should resist the temptation to crack
down on free speech. Some things citizens
will say on the Internet will be critical,
and you [politicians] will have to get over
this. The answer to bad speech is more
speech. You get a much better idea of
what all your citizens care about, he said.
Schmi dt i s expect ed t o have
discussed issues of Internet freedom in
closed-door meetings in Naypyidaw after
his address in Yangon. This kind of
informal diplomacy is a crucial part of
Schmidts forays into unwired societies
like Myanmar and North Korea. Analysts
believe that his dialogue with North
Korean leaders prompted its notoriously
reclusive leaders to allow foreigners to
use mobile Internet earlier this year.
ACUMEN 29
June 2013
While Myanmars Internet is now
largely uncensored, the countrys skeletal
infrastructure leaves it vulnerable to
blackouts. All Internet traffic in or out of
Myanmar runs through one fibre optic
backbone, making it easy for information
flows in and out of the country to be
st opped ei t her by acci dent or
deliberately. A study by web security firm
Renesys ranked Myanmar s risk of
Internet disconnection as high, as the
countrys entire access must pass through
only one international frontier. Syria,
which received an equally low score
from Renesys, suffered a complete
Internet shutdown in December 2012, as
Some things
citizens will say on
the Internet will be
critical, and you
[politicians] will have
to get over this. The
answer to bad
speech is more
speech. You get a
much better idea of
what all your citizens
care about.
the embattled Assad regime sought to
keep information about the ongoing civil
war from leaking out.
It would be essentially impossible
for governments in countries like
Sweden, the Netherlands or the United
States to shut down the Internet entirely,
according to Renesys, as these countries
have 40 or more international gateways
to handle outbound Internet traffic.
Schmidt stressed that private-sector
investment is the only way to build a
functional and resilient ICT backbone to
help alleviate these concerns.
The government has to make it
possible for the private sector to build
[Myanmars] telecommunications infra-
structure, he said, claiming that state-
run telecommunications monopolies are
inefficient, hinder the adoption of
information technology, and make it too
easy for governments to control infor-
mation. He also noted that language as
well as cost acts as a barrier to Internet
adoption. Today, the internet here is
largely in English, and is used largely
by the elite because prices are too
high, he noted. We have to get prices
down, which occurs via competition, [a]nd
we need to get cheaper phones on the
market.
I predict that if you do that right
[liberalisation] , the most profitable
industries in Myanmar will be in the
t el ecommuni cat i ons sect or, he
elaborated. The profitability of the ICT
sector will bring with it social benefits,
he claimed, in areas like rural poverty
reduction and education. He cited the
examples of a US NGO distributing
thousands of tablet computers in Ethiopia,
which has shown promise as an efficient
way of educating underserved commu-
nities, and M-Pesa, an SMS-based money-
transfer system originating in Kenya that
has allowed for cashless transfers to
become commonplace across East Africa,
providing people without access to the
Feature
Mobile phone penetration in Myanmar is extremely low by global
standards - but that will change quickly.
ACUMEN 31
formal banking system with a way to
save money.
Extending credit to impoverished
rural communities is a primary focus of
many development agencies that have
returned to Myanmar since President U
Thein Sein took office in 2011. A new
product launched in late 2012 by
Safaricom, the service provider behind
M-Pesa, allows users to earn interest on
virtual deposits in the same manner they
would with a traditional bank account.
By allowing customers to access credit
without ever having to step into a
physical bank, mobile technologies can
ACUMEN 31
help develop the kind of small-scale
ent erpri se necessary f or povert y
alleviation and economic growth.
Opt i mi st i c as ever, Schmi dt
promised that Myanmar should look
forward to riding the most exciting
rocketship youve ever been on as the
changes brought about by ICT
development come into effect. While
information technology can be a driver
of economic growth in its own right
witness the rise of Google, Silicon Valley
and the information economy in the
United States the benefits of ICT will
bring about net gains for practically every
sector of Myanmars economy, according
to Schmidt, and this development will
allow Myanmars development process
to race ahead at lightning speed. You
will all have an opportunity to skip all
the previous generations of technology,
he prophesised. [Y]ou will literally
leapfrog 20 years of difficult-to-maintain
infrastructure and go straight to the most
modern architecture. For the people of
Myanmar, who remain isolated as the
world becomes ever more intercon-
nected, this change cant come quickly
enough. A
Mobile phone-based money transfer and microfinance services, inlcluding M-Pesa, are popular in East
Africa and other parts of the developing world - Fiona Bradley/Flickr.
June 2013
Feature
An unprecedented influx of visitors to Myanmar means the tourism industry, like all of Myanmars
industries, is badly in need of a makeover. 9 million international visitors are expected by the end
of the decade, and there have only been 739 hotels built to date to accommodate them. As the
country emerges from isolation, optimistic planners talk of leapfrogging, and learning from the
mistakes made by other countries in the region. The tourism industrys transformation will have a
profound impact on shaping Myanmars reforming economy. Paul Rogers, team leader of the
Myanmar Tourism Master Plan, described the scale of impending change as scary at the Myanmar
Hospitality and Tourism Conference this past February.
June 2013
ACUMEN 33
At the conference, Minister of Tourism Htay Aung addressed
Myanmars evident unpreparedness for its sudden popularity
as a tourist destination. We are not satisfied, he said. We
want to do better. We want to improve every aspect of tourism,
so we can bring the world to the country, he said.
But how will Myanmar market itself as a travel destination,
and what role are foreign investors playing in shaping that?
Will Myanmar be playing leapfrog, or catch-up? And how to
make the Myanmar travel experience wholly unique in the
region, and not just another Thailand?
Its an enormous challenge for a country blessed with a rich
variety of natural and cultural attractions, and blessed with
people recognized to be among friendliest in region, Rogers
continued. The beeping transformers prompted by occasional
power cuts throughout the conference echoed his words.
He pointed out that the industry is diverse and fragmented.
Its development will cut across all sectors, he said, so tourism
development will have a pervasive impact beyond just
infrastructure development. The opening of land borders,
loosening visa restrictions, the new international airport,
improved internet connectivity, and more reliable electricity
are all tourism-related developments that can push concrete
reforms forward across a number of sectors. Many, however,
want slower, controlled growth to ensure that it is done
responsibly, especially with respect to tourism-related small
infrastructure, such as accommodation, transportation, and
destination planning.
Tourism earnings in Myanmar totaled US$165 million in
2008, rising to US$319 million in by 2011. This is less than 1%
of GDP, compared to 15% in neighboring Thailand. Most profits
go to crony businessmen with close links to the government,
who still control the vast majority of large hotels and domestic
travel outfits.
ACUMEN 33
June 2013
Arild Molstad, of the Norwegian non-
governmental organization Partnership
for Change, says thats something that will
change, but only gradually. When you
look at the millennium development goals,
there are only one or two [issues] that
are not directly associated with tourism,
he says. But the attitude of the Minister
is not to rush [tourism development]
unnecessarily. Uncontrolled growth for
tourism in Myanmar will kill the goose
that lays the eggs. It means short-term
gain and long-term pain.
Myanmar is the last shining star of
travel in Asia, according to James Reed,
CEO of corporate travel specialists
Destination Asia. Travelers want a sense
of having explored, [and] want to see
something new. The needs of the ultra
luxury market have changed, and
[cust omers] are l ooki ng f or new
frontiers. But many fear tourists looking
for something new will destroy the one
advant age Myanmar has over i t s
nei ghbors: i t s cachet . Myanmar s
unspoiled tourism landscape is likely
to eventually give way to luxury and
convenience, to serve the needs of
visitors who have a limited relationship
with the country.
According to Molstad, the quality of
the tourism experience is already
decl i ni ng at several dest i nat i ons,
including Bagan. This has resulted in
tourists returning from Myanmar with
the impression that it is still too early to
go. Thats not a bad thing, says Molstad.
What you need here is to buy time,
which can be more profitable than buying
land.

The Pesky Hotel Shortage The Pesky Hotel Shortage The Pesky Hotel Shortage The Pesky Hotel Shortage The Pesky Hotel Shortage
One thing is certain: Myanmar lacks
hotel rooms, and travelers are arriving
in droves. 600,000 passengers arrived
at Yangon International Airport last year,
and projections estimate this number will
increase to 5,000,000 by 2015. Myanmars
hoteliers have taken advantage of the
laws of supply and demand, and room
prices have risen by 50% in the last two
years alone. Inflated land prices have
made i t di f f i cul t t o devel op new
properties, as well.
Kyaw Ht un of t he Myanmar
Tourism Federation recognizes this gap
as a great shortcoming of the industry.
Myanmar is a hatchling, we are just
starting out, and have a lot of growing to
do, he said, adding that the impending
Southeast Asian Games (SEA games)
have put time pressure on building more
Feature
Bagan, Amarapura and Inle Lake (from left, clockwise) are all popular
destinations for foreign tourists visiting Myanmar.
ACUMEN 35
hotels.
The Tourism Federation is in charge
of implementing large development
plans geared toward addressing this
shortage, including the US$56 million
Tada Oo development near Mandalay,
as well as other projects near Inle Lake,
Bagan, and Chaungtha and Ngwesaung
beaches. The Tada Oo project has been
criticized for being yet another ill-advised
hot el zone, such as t he ones i n
Naypyidaw, but Kyaw Htun insists this
is a misnomer, as it will also have
commercial and entertainment zones. He
does have a point: the scale of the project
is so ambitious that it is more analogous
to a second centre for Mandalay than
merely another hotel zone.
The project would also be built on
hundreds of acres of farmland that
sustains farmers who dont directly own
their land due to problematic land
ownership legislation, a hangover from
the socialist era. As Kyaw Htun presented
plans for the project to a crowd of
developers at Februarys conference, he
began apologetically with the reassurance
that land-grabbing would not occur. We
are not seizing land, only negotiating to
buy land off the farmers, he said, If
there are some farmers who are not
willing to sell, we will just leave that plot
of land out of the plan.
As he presented the plan - which
includes a golf course, a new bus station,
a shopping mall and a handicraft village
June 2013
- it was difficult to imagine any room for
a small plot of farmland. And Molstads
words about the goose that lays the eggs
were suddenly prescient once again.

Looking Past the SEA Games
One way to approach the hotel room
shortage is to entice tourists to come
during the eight-month off season
when there is no hotel room shortage at
popular tourist destinations meaning
people need a reason to come other than
the weather.
Feature
Tourist arrrivals reached record highs in 2013, and this momentum is expected to
carry forward into the future.
Uncontrolled growth for tourism in
Myanmar will kill the goose that
lays the eggs. It means short-term
gain and long-term pain.
ACUMEN 37
In the past, there has been a
reliance on cultural tourism, partially
because domestic tourism consists largely
of pilgrimage to holy Buddhist sites.
International tourists naturally follow suit,
l eadi ng t owhat Ni na Tamaschko,
Myanmars general manager of Orient
Express, described as clients feeling
pagodaed out.
She says the model of religious
tourism is self-defeating, as visitors arrive
and a destination becomes more popular,
it works to the detriment of the industry,
according to Louk Lennaerts of Central
Coast Destination Marketing Organisation.
Nobody thinks of Myanmar as a desti-
nation for beach vacations, he said. But
beach destinations are a major thing, and
beach holidays have to start being
developed now, not later.
Tamaschko, however, believes that
even in the luxury market, people are
coming to Myanmar for a unique travel
experience. Its important we dont focus
on the big 5 destinations - Yangon,
Mandalay, Bagan, Inle, Ngapali - but that
we show them different destinations,
she said. Clients also want to see the
schools weve built and go to the alms
offerings at 5 am. Not just visit pagodas.
After a 44-year hiatus as host for
the SEA Games, Myanmar sees games
as a coming-out party akin to the role
played by the Beijing Olympics for China.
The legacy of infrastructure development
to prepare for tens of thousands of
visitors and athletes will last beyond the
games, but what impression of the
country will the visitors be taking with
them when they leave? And will they
be tantalized enough by Myanmar to
return? A
June 2013
B2B Interview
June 2013
ACUMEN 41
Royal Myanmar Tea Mix is one of the most popular beverage brands in Myanmar, and has a strong following in the local
market. MDG (Myanmar Distribution Group), the company behind Royal Myanmar Tea Mix, is a major player in
Myanmars beverage industry. Aside from the Royal Myanmar brand, MDG sells coffee, cereal and beverage products
under nine different trademarks. To understand MDGs success, Dr. Aung Tun Thet, Senior Advisor to the UN Resident
Coordinators Office, sat down with MDGs managing director, U Aung Maw Thein, for an exclusive interview.
Dr. Aung Tun Thet: Very nice to meet you, U Aung Maw Dr. Aung Tun Thet: Very nice to meet you, U Aung Maw Dr. Aung Tun Thet: Very nice to meet you, U Aung Maw Dr. Aung Tun Thet: Very nice to meet you, U Aung Maw Dr. Aung Tun Thet: Very nice to meet you, U Aung Maw
Thein. Youre rather young to have attained your position as Thein. Youre rather young to have attained your position as Thein. Youre rather young to have attained your position as Thein. Youre rather young to have attained your position as Thein. Youre rather young to have attained your position as
the managing director of a major company. How did you get the managing director of a major company. How did you get the managing director of a major company. How did you get the managing director of a major company. How did you get the managing director of a major company. How did you get
involved in the business world in the first place? involved in the business world in the first place? involved in the business world in the first place? involved in the business world in the first place? involved in the business world in the first place?
U Aung Maw Thein: U Aung Maw Thein: U Aung Maw Thein: U Aung Maw Thein: U Aung Maw Thein: My generation is not particularly interest-
ed in doing business. My parents are both lawyers, and I never
had any particular interest in going into business. I majored in
marine biology in university and moved to Singapore, where
my father wanted me to study computer science. Id never seen
a computer before, when I was in Myanmar, but managed to
complete a one-year diploma course. When I came back to
Myanmar, I started work at a company called Geocomp Myan-
mar - which was just starting up at the time - as a technician. I
stayed with them for six months before landing a job doing IT
work for Unocal.
I lost my job soon after, and went back to Singapore in
search of work. Unocals offices in Singapore had a logistics
department, and based on the strength of a recommendation
from my bosses at Unocal in Myanmar, they gave me a job. I
did exploratory work and computing, such as mapping and
data logging. It made sense for me to work there at the time as
I had my heart set on becoming a computer technician. But my
wife who is a doctor was living and working in Jamaica at
the time, and it was difficult being apart.
My life in Singapore wasnt easy, and it wouldnt have
been fair to insist she move to Singapore with me. We came to
ACUMEN 41
June 2013
the realization that if we kept up this routine wed end up as
employees, without the freedom to live our lives how we saw
fit. So I quit and came back to Myanmar, with the goal of setting
up a business of some sort. My family loved food, especially a
number of Singaporean brands I introduced them to.
So you started an importing business? So you started an importing business? So you started an importing business? So you started an importing business? So you started an importing business?
Well, I started out with two shipping containers worth of
food, so that hardly counts as importing
When did this start? When did this start? When did this start? When did this start? When did this start?
In 1996 or 1997. I had a friend in Singapore who filled
those two containers for me, and I distributed their contents
myself to local businesses. I then placed an order for ten con-
tainers worth of product, then one hundred. So we needed to
formally register as a company in Myanmar. My father, being a
lawyer, took care of all of the formalities. His students suggest-
ed we name the company Win and Sons after my mother,
whose name is Daw Yi Yi Win. My brother and I drove around
making deliveries with our own car.
I hired a staff of two later on, but I didnt even have an
office at that point I worked from home. At that point, I started
importing other products, such as UHT milk. Eventually, I moved
the office out of my parents house, and converted it into a small
hotel of my own. The tourism industry was on the rise at the
time and there werent many hotels around. I stayed in the
distribution business throughout, though, and some of my big-
gest clients for the UHT milk were hotels. I saw that other
companies were supplying them with meat, fish, and vegeta-
bles. I became curious and decided to diversify the range of
products I offered.
Who were some of your early clients? Who were some of your early clients? Who were some of your early clients? Who were some of your early clients? Who were some of your early clients?
In the early days, I supplied the Nawarat and Summit Park-
view Hotels, and eventually to Traders and Sedona. I eventual-
ly got out of the hotel business entirely to focus on my distribu-
tion business. I expanded my office, grew the range of products
on offer, bought a fleet of company vehicles and hired more
staff. I started importing Gold Roast coffee mix from Singapore
at around the same time.
So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand?
Yes it is. We are just licensees. I saw the brand by chance
when I was shopping in Singapore, tried it, and realised that it
would probably go over well with Myanmar consumers. I took
a chance and imported a shipping containers worth. It didnt go
over as well as Id hoped it would - it took me six months to
get rid of what Id brought in to the country. But I didnt quit.
My colleagues gave me the support I needed, and I kept press-
B2B Interview
U Aung Maw Thein U Aung Maw Thein U Aung Maw Thein U Aung Maw Thein U Aung Maw Thein
June 2013
the realization that if we kept up this routine wed end up as
employees, without the freedom to live our lives how we saw
fit. So I quit and came back to Myanmar, with the goal of setting
up a business of some sort. My family loved food, especially a
number of Singaporean brands I introduced them to.
So you started an importing business? So you started an importing business? So you started an importing business? So you started an importing business? So you started an importing business?
Well, I started out with two shipping containers worth of
food, so that hardly counts as importing
When did this start? When did this start? When did this start? When did this start? When did this start?
In 1996 or 1997. I had a friend in Singapore who filled
those two containers for me, and I distributed their contents
myself to local businesses. I then placed an order for ten con-
tainers worth of product, then one hundred. So we needed to
formally register as a company in Myanmar. My father, being a
lawyer, took care of all of the formalities. His students suggest-
ed we name the company Win and Sons after my mother,
whose name is Daw Yi Yi Win. My brother and I drove around
making deliveries with our own car.
I hired a staff of two later on, but I didnt even have an
office at that point I worked from home. At that point, I started
importing other products, such as UHT milk. Eventually, I moved
the office out of my parents house, and converted it into a small
hotel of my own. The tourism industry was on the rise at the
time and there werent many hotels around. I stayed in the
distribution business throughout, though, and some of my big-
gest clients for the UHT milk were hotels. I saw that other
companies were supplying them with meat, fish, and vegeta-
bles. I became curious and decided to diversify the range of
products I offered.
Who were some of your early clients? Who were some of your early clients? Who were some of your early clients? Who were some of your early clients? Who were some of your early clients?
In the early days, I supplied the Nawarat and Summit Park-
view Hotels, and eventually to Traders and Sedona. I eventual-
ly got out of the hotel business entirely to focus on my distribu-
tion business. I expanded my office, grew the range of products
on offer, bought a fleet of company vehicles and hired more
staff. I started importing Gold Roast coffee mix from Singapore
at around the same time.
So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand? So Gold Roast is a Singaporean brand?
Yes it is. We are just licensees. I saw the brand by chance
when I was shopping in Singapore, tried it, and realised that it
would probably go over well with Myanmar consumers. I took
a chance and imported a shipping containers worth. It didnt go
over as well as Id hoped it would - it took me six months to
get rid of what Id brought in to the country. But I didnt quit.
My colleagues gave me the support I needed, and I kept press-
B2B Interview
U Aung Maw Thein U Aung Maw Thein U Aung Maw Thein U Aung Maw Thein U Aung Maw Thein
ACUMEN 43
and Gold Roast started selling like hotcakes, so to speak. As
sales were strong and we anticipated further growth, I bought a
larger plot of land, built a larger factory, and moved the offices.
You use the same mixing technology as is used in Singapore? You use the same mixing technology as is used in Singapore? You use the same mixing technology as is used in Singapore? You use the same mixing technology as is used in Singapore? You use the same mixing technology as is used in Singapore?
Yes, the parent company in Singapore came and taught us
what to do.
What about packaging? Does local packaging conform to the What about packaging? Does local packaging conform to the What about packaging? Does local packaging conform to the What about packaging? Does local packaging conform to the What about packaging? Does local packaging conform to the
same standards as the product produced in Singapore? same standards as the product produced in Singapore? same standards as the product produced in Singapore? same standards as the product produced in Singapore? same standards as the product produced in Singapore?
Our Singaporean partners help us with packaging, as well.
ing forward. But, as often happens, the importation rules changed,
which made it difficult to import coffee mix and other products
after a while.
As we were only allowed to import a small amount of
coffee mix, I came to the conclusion that it would make sense
for us to stop importing altogether. I decided to build a small
factory here, and asked my old university friends to help me
procure and maintain manufacturing equipment. I started out
with three packaging machines in South Okkalapa Township.
Gold Roast sent me one technician from Singapore, but the rest
of the staff were locals. Our advertisements got a lot of airplay,
Dr. Aung Tun Thet Dr. Aung Tun Thet Dr. Aung Tun Thet Dr. Aung Tun Thet Dr. Aung Tun Thet
June 2013
We import special aluminum foil and PVC bags. We learned
how to properly formulate, produce and package the coffee mix
from them.
When did you change the companys name from Win and When did you change the companys name from Win and When did you change the companys name from Win and When did you change the companys name from Win and When did you change the companys name from Win and
Sons to MDG? Sons to MDG? Sons to MDG? Sons to MDG? Sons to MDG?
When we started to distribute our products nationwide, I
came to realise that the name Win and Sons was pretty gener-
ic. As our principal business was sales and distribution, I thought
that MDG which stands for Myanmar Distribution Group
was a more suitable name. Our logo has eight arrows, which
represents our philosophy that we will distribute our products
anywhere there is a market for them! The manufacturing side of
our business is run under the brand name Myanmar Lion Com-
pany, Ltd.
I am aware that you have a factory in the Dagon docklands. Is I am aware that you have a factory in the Dagon docklands. Is I am aware that you have a factory in the Dagon docklands. Is I am aware that you have a factory in the Dagon docklands. Is I am aware that you have a factory in the Dagon docklands. Is
this your companys only manufacturing facility? this your companys only manufacturing facility? this your companys only manufacturing facility? this your companys only manufacturing facility? this your companys only manufacturing facility?
I have three factories which produce 3-in-1 coffee and tea
mixes. Our most important tea product is Royal Myanmar Tea
Mix, which we make with local tea powder. We found that
other tea mix products on the market werent particularly good,
and knew we could do better. This is because the tea powder
used in competing brands was imported, and didnt have the
local flavour Myanmars consumers have come to demand. To
be honest, I couldnt afford to source ingredients from abroad,
so I made do with what domestic producers could provide. The
result, interestingly, is a product that is much better than what
our competitors offer.
Another venture I am involved with is a factory that con-
verts green tea leaves to instant tea powder. That factory has
been around for ten years already. As my first factory was lo-
cated in North Okkala at the time, I chose to build the green tea
facility in the nearby Yangon industrial estate. But now that
most operations have moved to the Dagon docklands, its quite
far away. The third factory makes soft drinks, and has only
been around for six months or so. We produce a popular brand
of energy drink called Cobra, and were the national licensees
B2B Interview
of the Sunkist brand in Myanmar. For Sunkist, in particular, I
have high hopes that it will be able to attain a sizeable market
share.
Whats your vision for taking MDG forward? Whats your vision for taking MDG forward? Whats your vision for taking MDG forward? Whats your vision for taking MDG forward? Whats your vision for taking MDG forward?
When doing business in Myanmar, you have to expect the
unexpected. Im not going to deny that we have difficulties some-
times. Sometimes, our luck in business isnt so good and these
are the kinds of practical lessons you cant learn in the class-
room. Ive been doing business for years, Ive been relatively
successful - and I dont even have a business degree.
Ive always wanted to do an MBA (Master of Business
Administration), but when I didnt have a lot of money when I
was younger. At this point, I dont have the time to do one. Im
not a deep strategic thinker, I make my business decisions based
on instinct and experience. The good feeling I got about the
prospects for 3-in-1 coffee mix is a good example of my deci-
sion-making process, and that was why I decided to focus on it
ACUMEN 45
almost exclusively. It was only after that initial success that I
decided to re-diversify under the MDG banner.
All products have distinct life cycles. Unless youre con-
stantly increasing your market share, youre not going to keep
the business sustainable in the long run. It was for this reason
that we made a concerted effort to distribute our products
nationwide. I was able to develop expertise in both distribution
and manufacturing through constantly expanding the business,
building on past successes. Our recent expansion into the soft
drink market is an example of this progression, and shows the
value in having vertically integrated manufacturing and distri-
bution facilities.
By sourcing tea powder locally, youre supporting the local By sourcing tea powder locally, youre supporting the local By sourcing tea powder locally, youre supporting the local By sourcing tea powder locally, youre supporting the local By sourcing tea powder locally, youre supporting the local
economy, but local tea isnt generally rated as highly as im- economy, but local tea isnt generally rated as highly as im- economy, but local tea isnt generally rated as highly as im- economy, but local tea isnt generally rated as highly as im- economy, but local tea isnt generally rated as highly as im-
ported tea. How do you keep the quality up? ported tea. How do you keep the quality up? ported tea. How do you keep the quality up? ported tea. How do you keep the quality up? ported tea. How do you keep the quality up?
We entered into negotiations with green tea producers who
primarily supplied teashops directly in the past. Many of these
producers produced pickled tea leaves, first and foremost, which
is, of course, different from what we needed. Moisture content
is important to us. We dont dye our products; we only accept
leaves with rich natural colour. Dealing with suppliers wasnt
easy early on; wed specify one thing, and theyd do the oppo-
site. We wasted a lot of tea back then. But over time we were
able to get across what we needed, and eventually we man-
aged to pull it together.
There werent many tea suppliers for me to work with at
the time, and quality has improved greatly since then. We have
our suppliers and we guard them closely. By the time we opened
the factory in Dagon, we had managed to get costs down signif-
icantly. Now, however, sourcing locally can be more expensive
than importing raw materials, its getting more expensive every
year. There are shortages of tea in Myanmar some years, as
much of Myanmars annual crop is exported to China.
I spoke with suppliers and learned that there is also a
labour shortage in the tea industry, so dealing with domestic
MDGs products are well-advertised - and popular - nationwide.
June 2013
suppliers exclusively doesnt necessarily make doing business
cheaper. The high cost of electricity adds to the cost, as well, so
domestically-produced tea mix tends to be more expensive than
the foreign competition.
Have you considered getting into the pickled tea leaf busi- Have you considered getting into the pickled tea leaf busi- Have you considered getting into the pickled tea leaf busi- Have you considered getting into the pickled tea leaf busi- Have you considered getting into the pickled tea leaf busi-
ness? ness? ness? ness? ness?
Sure, I have. I understand manufacturing, not agriculture,
so Id be open to the idea. But on the other hand, I dont think
getting into that sector is a risk Im willing to take right now. It
doesnt fit into MDGs business plans at the moment, but that
isnt to say that it will not become part of our repertoire of
products at some point.
How do constraints on your distribution network impact your How do constraints on your distribution network impact your How do constraints on your distribution network impact your How do constraints on your distribution network impact your How do constraints on your distribution network impact your
marketing strategies? marketing strategies? marketing strategies? marketing strategies? marketing strategies?
There have been difficulties buying delivery trucks in the
past. Also, finding trustworthy salespeople can also be prob-
lematic. Some are alright, some are dishonest. I have to be
vigilant, as distribution is part of the service industry, and our
ability to provide good service will depend on my employees.
From the beginning, I have tried to surround myself with peo-
ple I can trust. They are the anchors of the whole operation, if
you will. I really value my employees.
Distribution is challenging, because aside from taking care
of quality control and financial matters, I need to manage a
large and geographically scattered workforce. Managing distri-
bution networks is different from management in other sectors.
My office staff works from 8:30 in the morning until 5 in the
afternoon every day, so I can watch over them easily, whereas
its more difficult to keep tabs on the distribution team.
Logistics are also problematic. We make use of delivery
trucks for the most part, but also distribute our products via
inland water transport and railway freight. Relying on public
transport is risky, as Im entrusting logistics to someone else,
which means I cant be accountable for losses or delays. The
fact that its difficult to get proper insurance here compounds
the problem.
The 3-in-1 market in Myanmar has The 3-in-1 market in Myanmar has The 3-in-1 market in Myanmar has The 3-in-1 market in Myanmar has The 3-in-1 market in Myanmar has
become pretty saturated, and there become pretty saturated, and there become pretty saturated, and there become pretty saturated, and there become pretty saturated, and there
are now many companies producing are now many companies producing are now many companies producing are now many companies producing are now many companies producing
similar products. Whats MDGs com- similar products. Whats MDGs com- similar products. Whats MDGs com- similar products. Whats MDGs com- similar products. Whats MDGs com-
petitive advantage? Price? Quality? petitive advantage? Price? Quality? petitive advantage? Price? Quality? petitive advantage? Price? Quality? petitive advantage? Price? Quality?
Ease of use? Ease of use? Ease of use? Ease of use? Ease of use?
To be competitive, of course price
needs to be taken into consideration.
But while price is a factor, quality is
most important, because I am a con-
sumer of my products too! High-qual-
ity products add value in their own
right. Our products are high quality,
reasonably priced, and available ev-
erywhere due to our extensive distri-
bution network. Now, however, the
playing field has changed somewhat.
Advertising and promotion costs are
increasing, as is the cost of raw mate-
rials.
Salaries are also going up, but that
isnt necessarily a bad thing. I want to
encourage effective work habits, and
I always push my employees to strive
to succeed. The success of our busi-
ness is dependent on our distribution
network; most of our success can be
chalked up to our deep market pene-
tration. Our factories need to produce products efficiently, and
our service-based elements need to provide quality customer
service. It is only by synergising these two aspects of the busi-
ness that we can be effective, and this is why I drive my em-
ployees to produce what I like to call intangible value the
effective habits that can help the business thrive.
Foreign companies in foreign markets do extensive market Foreign companies in foreign markets do extensive market Foreign companies in foreign markets do extensive market Foreign companies in foreign markets do extensive market Foreign companies in foreign markets do extensive market
research. Is that common practice in Myanmar? research. Is that common practice in Myanmar? research. Is that common practice in Myanmar? research. Is that common practice in Myanmar? research. Is that common practice in Myanmar?
Sure, we use market research data in Myanmar. But its not
B2B Interview
ACUMEN 47
detailed and can only give us very basic information. Moreover,
the sample sizes of these surveys are too small to extrapolate
patterns that extend to all of Myanmar. But we are able to pick
up on certain signals. For example, Gold Roast is popular in
households but weak in tea shops. When it comes to Calsome
cereal, we have a strong market with household consumers as
well as buyers in the HORECA (Hotel, Restaurant, Caf) sector.
The popularity of these products also varies with geogra-
phy. Calsome, for example, is more popular in Upper Myanmar.
But specifics aside, both Calsome and Gold Roast are market-
leading products in Myanmar, as is Royal Myanmar tea mix
with its unique taste.
Going back to promotion and marketing, how does MDG ad- Going back to promotion and marketing, how does MDG ad- Going back to promotion and marketing, how does MDG ad- Going back to promotion and marketing, how does MDG ad- Going back to promotion and marketing, how does MDG ad-
vertise? vertise? vertise? vertise? vertise?
TV ads and billboards are our main channels for advertis-
ing. Where we choose to focus depends on the product were
trying to promote. Profitable products subsidise advertising cam-
paigns for new, untested products, but this is all part of the
strategy. We plan out our marketing strategies a year in ad-
MDG headquarters in Tamwe
Township, Yangon.
June 2013
B2B Interview
vance of any new campaign, and are constantly reassessing our
market position to make changes to our marketing strategies.
Our strategies also depend on who our target audience is,
be it retail consumers or wholesale purchasers. We also run
locally-targeted ad campaigns in specific areas if we feel it makes
sense to do so. Some campaigns are only effective in the short-
term, but some have longevity and we can run with them for a
long time. Its all a question of thinking strategically about what
kinds of campaigns will promote our brands best.
Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness
of local staff. How large is your workforce? of local staff. How large is your workforce? of local staff. How large is your workforce? of local staff. How large is your workforce? of local staff. How large is your workforce?
At MDG, we have a workforce of 700. When all the facto-
ries under the MDG umbrella nationwide are taken into ac-
count, the company has about 1200 workers.
As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is
a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues?
My company has a human resource department, and as I
said before, the distribution team is the most problematic. I am
the head of HR for MDG, and each factory has its own respec-
tive administrative and HR departments. I treat my staff well.
Im not a fan of the Im the boss and youre my underlings sort
of dynamic in the workplace, I know that theyre keen to make
it all work as much as I am. Theyre my colleagues, and I see
nothing wrong with saying that were like family. When they
have trouble, I try my best to help them out with the issues
theyre having as a family member might. I try to get my vision
for the company across to them, where I see things going, and
I am always open to their suggestions on how things might be
improved. This is important because I cant do it all myself, so I
try to talk to all employees every six months or yearly, at most,
and I remind regional managers of the importance of taking
care of their employees.
Human resources are very important at MDG. I always try
my best to motivate the staff. In my experience, people want to
work at MDG because of our good reputation, and arent partic-
ularly concerned about the salary theyll receive. At other com-
panies, even if they were to receive double the money theoret-
ically, they might be working for less-than-ideal employers in a
less-than-ideal working environment. This is a primary reason
why I try my best to leave communication channels open at all
times. There are many kinds of jobs in this world some that
pay well and some that only provide experience. But I try to
create a working environment that offers both, and I try to
remind my staff of this.
As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are
monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their
management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids,
nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a
successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor-
porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for-
ward? ward? ward? ward? ward?
June 2013
B2B Interview
vance of any new campaign, and are constantly reassessing our
market position to make changes to our marketing strategies.
Our strategies also depend on who our target audience is,
be it retail consumers or wholesale purchasers. We also run
locally-targeted ad campaigns in specific areas if we feel it makes
sense to do so. Some campaigns are only effective in the short-
term, but some have longevity and we can run with them for a
long time. Its all a question of thinking strategically about what
kinds of campaigns will promote our brands best.
Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness Local entrepreneurs tend to complain about the effectiveness
of local staff. How large is your workforce? of local staff. How large is your workforce? of local staff. How large is your workforce? of local staff. How large is your workforce? of local staff. How large is your workforce?
At MDG, we have a workforce of 700. When all the facto-
ries under the MDG umbrella nationwide are taken into ac-
count, the company has about 1200 workers.
As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is As youve mentioned, finding qualified people in Myanmar is
a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues? a challenge. How does your company deal with HR issues?
My company has a human resource department, and as I
said before, the distribution team is the most problematic. I am
the head of HR for MDG, and each factory has its own respec-
tive administrative and HR departments. I treat my staff well.
Im not a fan of the Im the boss and youre my underlings sort
of dynamic in the workplace, I know that theyre keen to make
it all work as much as I am. Theyre my colleagues, and I see
nothing wrong with saying that were like family. When they
have trouble, I try my best to help them out with the issues
theyre having as a family member might. I try to get my vision
for the company across to them, where I see things going, and
I am always open to their suggestions on how things might be
improved. This is important because I cant do it all myself, so I
try to talk to all employees every six months or yearly, at most,
and I remind regional managers of the importance of taking
care of their employees.
Human resources are very important at MDG. I always try
my best to motivate the staff. In my experience, people want to
work at MDG because of our good reputation, and arent partic-
ularly concerned about the salary theyll receive. At other com-
panies, even if they were to receive double the money theoret-
ically, they might be working for less-than-ideal employers in a
less-than-ideal working environment. This is a primary reason
why I try my best to leave communication channels open at all
times. There are many kinds of jobs in this world some that
pay well and some that only provide experience. But I try to
create a working environment that offers both, and I try to
remind my staff of this.
As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are As you mentioned before, most companies in Myanmar are
monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their monopolists. Theres a lot of nepotism: businessmen stack their
management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids, management and boards of directors with their in-laws, kids,
nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a nephews, nieces and so on. As youre relatively young for a
successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor- successful entrepreneur in Myanmar, how do you think cor-
porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for- porate governance in Myanmar should change moving for-
ward? ward? ward? ward? ward?
ACUMEN 49
At MDG, Ive made a conscious effort over the past three
years to change things up. Ive hired highly qualified foreigners
to take charge of engineering and management. Ive also hired
a British gentleman to be our CFO, who has a lot of manage-
ment experience as he worked for KPMG in the past. My direc-
tors are from Singapore, and have been here for two years
already. I am trying to build a sustainable system that will work
well once Im no longer around.
The key to success at MDG is professionalism. To be hon-
est, I had no management training when I started the company
and wasnt really aware of what professionalism standards were.
For that reason, I dont see myself as an ideal managing direc-
tor. I dont think Im well suited to stay in charge of day-to-day
operations, and would be inclined to pass on the reins to some-
one else. That said, over the past two years, I have tried to
teach myself a lot about finance, and have made efforts to build
a true corporate culture and structure at MDG.
For a company to be successful, you need people from
diverse backgrounds to work together towards a common goal.
But sometimes, management strategies from the past need to
change and people whose work isnt living up to expectations
need to be let go. I have made a lot of management and strate-
gic changes over the past few years, which had the effect of
alienating a lot of workers, some of whom ended up resigning.
But I powered through and did what I felt was best for the
company, and I feel as though weve almost realised our goals.
When I first hired foreign managers, I was worried that there
would be a culture clash and language barrier, but that hasnt
been a significant problem. Ive also hired Myanmar staff that
have experience in management overseas, which goes a long
way towards professionalising the entire operation.
HR is as much of an investment as is MDGs tangible infrastruc-
ture, like our factories or trucks. I value having good staff around,
and I value their loyalty. Without loyalty, a company cannot thrive.
MDG places a strong emphasis on its billboards, and
tailors its advertising campaigns differently in
regional markets across Myanmar.
June 2013
Myanmars business community is apprehensive of what might Myanmars business community is apprehensive of what might Myanmars business community is apprehensive of what might Myanmars business community is apprehensive of what might Myanmars business community is apprehensive of what might
happen in 2015, when the ASEAN Free Trade Area (AFTA) happen in 2015, when the ASEAN Free Trade Area (AFTA) happen in 2015, when the ASEAN Free Trade Area (AFTA) happen in 2015, when the ASEAN Free Trade Area (AFTA) happen in 2015, when the ASEAN Free Trade Area (AFTA)
and AEC (ASEAN Economic Community) come into effect. and AEC (ASEAN Economic Community) come into effect. and AEC (ASEAN Economic Community) come into effect. and AEC (ASEAN Economic Community) come into effect. and AEC (ASEAN Economic Community) come into effect.
The UMFCCI has warned local companies to be prepared for The UMFCCI has warned local companies to be prepared for The UMFCCI has warned local companies to be prepared for The UMFCCI has warned local companies to be prepared for The UMFCCI has warned local companies to be prepared for
a sudden inflow of foreign capital. How is MDG preparing? a sudden inflow of foreign capital. How is MDG preparing? a sudden inflow of foreign capital. How is MDG preparing? a sudden inflow of foreign capital. How is MDG preparing? a sudden inflow of foreign capital. How is MDG preparing?
Theres no way to avoid global brands competing with us
on our home turf. As you can see, my specialty is in the bever-
age industry, and I make efforts to connect my company with
other companies from the region that are operating in the same
sector. MDG isnt alone against the world, so to speak. These
other companies have more experience selling goods in other
regions, and I am a licensee, so MDG does not develop brands
from the ground up. I learn from our partners mistakes in other
markets, and how their operations have grown to succeed in
other markets in the region.
AFTA might be a bit frightening to some, but not as much
as has been claimed. Other multinational brands are already
here, like Coca-Cola and Pepsi. To compete with the big boys,
finance is a major problem for domestic companies. Access to
financial services is poor, which hampers our ability to expand
Myanmar banks simply cant give us enough in the way of
loans.
The second major problem I see is one of human resources, as
I have been stressing. Both operators and managers need to be
competent and qualified, and for this reason its important to
attract qualified staff. A perfect plan isnt worth anything if it
cant be implemented properly, and this implementation largely
comes down to how competent the staff is.
Managers jobs were easier before foreign competition came
Year Established - 1996
Business - Distribution, manufacturing, fast-moving consumer goods
Major Brands - Gold Roast Coffee-mix, Royal Myanmar Tea-mix, Calsome Cereal, Champion Cereal, Cofi-Cofi,
Juice 101, Air Soda, I-Cola, Cobra Energy Drink, Sunkist.
Head Office - 16 (E), East Race Course Road, Tamwe Township, Yangon.
Workforce - 1,200
Phone - (+95) 1 400533, 400544, 401182, 401183, 401184
Fax - (+95) 1 400912
Myanmar Distribution Group of Companies
to Myanmar, as there was no real impetus to be accountable.
Were improving, though. Im constantly working to make sure
that lines of communication are open and well-used. Our projects
will never be completed unless we follow up with each other;
theres no real culture of giving feedback, and managers still
use telephones as their primary means of communicating with
each other.
We need to start using email. Managers must know what
to prioritise, which becomes much easier when you have a full
inbox in front of you! But its true how will managers give
effective feedback otherwise? Can managers handle problems
that arise in a timely manner? Managers need to have hawk
eyes to coordinate workers and be effective. But these skills
arent yet well developed in Myanmar, and Im always left hav-
ing to follow up when my managers dont, which leaves me
exasperated.
What is MDGs stance on CSR (Corporate Social Responsibil- What is MDGs stance on CSR (Corporate Social Responsibil- What is MDGs stance on CSR (Corporate Social Responsibil- What is MDGs stance on CSR (Corporate Social Responsibil- What is MDGs stance on CSR (Corporate Social Responsibil-
ity) policies? Many sophisticated companies have well-estab- ity) policies? Many sophisticated companies have well-estab- ity) policies? Many sophisticated companies have well-estab- ity) policies? Many sophisticated companies have well-estab- ity) policies? Many sophisticated companies have well-estab-
lished CSR strategies. Our company is signatory to the UN lished CSR strategies. Our company is signatory to the UN lished CSR strategies. Our company is signatory to the UN lished CSR strategies. Our company is signatory to the UN lished CSR strategies. Our company is signatory to the UN
Global Compact, which signifies that the company that uses Global Compact, which signifies that the company that uses Global Compact, which signifies that the company that uses Global Compact, which signifies that the company that uses Global Compact, which signifies that the company that uses
its logo upholds certain ethical standards. I think MDG should its logo upholds certain ethical standards. I think MDG should its logo upholds certain ethical standards. I think MDG should its logo upholds certain ethical standards. I think MDG should its logo upholds certain ethical standards. I think MDG should
sign on! It sends a strong message to the world that Myan- sign on! It sends a strong message to the world that Myan- sign on! It sends a strong message to the world that Myan- sign on! It sends a strong message to the world that Myan- sign on! It sends a strong message to the world that Myan-
mars companies are reforming and are conscious of being mars companies are reforming and are conscious of being mars companies are reforming and are conscious of being mars companies are reforming and are conscious of being mars companies are reforming and are conscious of being
good corporate stewards. good corporate stewards. good corporate stewards. good corporate stewards. good corporate stewards.
Yes, I would love to. Of course, I am a businessman, but
profits arent my bottom line. Id be satisfied in business if I
were to be able to spend my money wisely, and engage in pro-
social engagement of the sort youve mentioned. A
June 2013
B2B Talk
ACUMEN 53
In the 21
st
century, the level of
development of a countrys ICT
(Information and
Communications Technology)
infrastructure has become an
important indicator of
development as a whole.
Countries that are well-
endowed with natural
resources but that have little
in the way of ICT infrastructure
are likely to lag behind. As
Myanmar enters a new era of
intensified development, it is
important to ask where
Myanmars ICT sector is
heading. What challenges will
ICT development face? What
opportunities are there for
Myanmar? Dr. Aung Tun Thet
sat down with Myanmar ICT
entrepreneurs to discuss these
issues.
ACUMEN 53
In the 21
st
century, the level of
development of a countrys ICT
(Information and
Communications Technology)
infrastructure has become an
important indicator of
development as a whole.
Countries that are well-
endowed with natural
resources but that have little
in the way of ICT infrastructure
are likely to lag behind. As
Myanmar enters a new era of
intensified development, it is
important to ask where
Myanmars ICT sector is
heading. What challenges will
ICT development face? What
opportunities are there for
Myanmar? Dr. Aung Tun Thet
sat down with Myanmar ICT
entrepreneurs to discuss these
issues.
June 2013
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Myanmar is going through significant
changes, socially, politically and economically. These changes
will be facilitated to a great extent by ICT development. Its
heartening to see young men here taking part in this discussion.
Despite their relatively young ages, they hold positions of great
responsibility. Let me introduce them. Our panelists are Dr.
Tun Thura Thet, the CEO of MIT Pte. Ltd; U Zaw Moe Thant,
the managing director of ACE; U Tun Tun Naing, the managing
director of Blue Ocean Operating Management Co., Ltd and the
founding director of eTrade Myanmar. Lastly, we have U Win
Htain Win, the founder and managing director of Gusto.
Lets start the discussion by asking how you started your
respective businesses, and the trials you went through to get
you to where you are today - the things that make you role
models for aspirational young people in Myanmar. Lets hear
from Dr. Tun Thura Thet first.
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: I started MIT, which is a software company,
in 1997. I finished school in Australia in 1995, and I started off
by building enterprise systems for local supermarkets. I then
went on to write software for local banks, as well. I feel that
innovation and ideas are more important than capital; we started
off really small but now have a team of nearly 300 workers
providing quality services.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: So youve been doing this for a while, I
see. Now, U Tun Tun Naing, please.
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: I started out as an employee in the sales
and marketing division of another business. When the ICT park
in Yangon was established in 2001, my friends suggested we
set up an ICT-related business. There was a problem, though: I
didnt know the first thing about programming or networking.
My background is in sales and marketing. When I learned that
the ICT industry was in need of ancillary services, my friends
and I established e-Trade Myanmar.
Its a company that focuses on commodity prices, which
we publish online. At first, we didnt receive much support or
encouragement. We were told by prospective customers, We
B2B Talk
can get all the market quotes we
need from commodity trading
centres. But in 2005 or so, we
began to attract a significant user
base, and started to offer a SMS-
based service. Today, our service
has become the most important
market price index for beans and
pulses in Myanmar.
In 2009, we launched a
subsidiary called Blue Ocean
Operating Management, the main
element of which is a call centre.
I became interested in the call
centre business after I returned
from the Philippines in 2004. I
proposed launching a call centre
to the Ministry of Communications
and Information Technology, and
we opened for business in 2011.
Blue Ocean now operates around
the clock with some 300 workers
offering IT support as well as call
centre services.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Now, U Win Htain Win, Please.
U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: Im from Mandalay, and I passed my high
school examinations in 1995. Up to that point, I had never been
a particularly successful student and wasnt very ambitious.
The following year, I opened a bookstore which gave me
lots of time to read. I became inspired by reading Myanmar
Dhana (Myanmar Wealth), which was the only magazine of its
kind in those days. Living Colour magazine was also an
inspiration to work hard and get ahead, but as my parents
werent in a position to help me, I didnt think I had much
chance of realizing my dreams.
The Mandalay Institute of Technology (MIT) closed just
three months after I enrolled as a first-year student.
Retrospectively, it was a blessing in disguise, because it gave
June 2013
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Myanmar is going through significant
changes, socially, politically and economically. These changes
will be facilitated to a great extent by ICT development. Its
heartening to see young men here taking part in this discussion.
Despite their relatively young ages, they hold positions of great
responsibility. Let me introduce them. Our panelists are Dr.
Tun Thura Thet, the CEO of MIT Pte. Ltd; U Zaw Moe Thant,
the managing director of ACE; U Tun Tun Naing, the managing
director of Blue Ocean Operating Management Co., Ltd and the
founding director of eTrade Myanmar. Lastly, we have U Win
Htain Win, the founder and managing director of Gusto.
Lets start the discussion by asking how you started your
respective businesses, and the trials you went through to get
you to where you are today - the things that make you role
models for aspirational young people in Myanmar. Lets hear
from Dr. Tun Thura Thet first.
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: I started MIT, which is a software company,
in 1997. I finished school in Australia in 1995, and I started off
by building enterprise systems for local supermarkets. I then
went on to write software for local banks, as well. I feel that
innovation and ideas are more important than capital; we started
off really small but now have a team of nearly 300 workers
providing quality services.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: So youve been doing this for a while, I
see. Now, U Tun Tun Naing, please.
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: I started out as an employee in the sales
and marketing division of another business. When the ICT park
in Yangon was established in 2001, my friends suggested we
set up an ICT-related business. There was a problem, though: I
didnt know the first thing about programming or networking.
My background is in sales and marketing. When I learned that
the ICT industry was in need of ancillary services, my friends
and I established e-Trade Myanmar.
Its a company that focuses on commodity prices, which
we publish online. At first, we didnt receive much support or
encouragement. We were told by prospective customers, We
B2B Talk
can get all the market quotes we
need from commodity trading
centres. But in 2005 or so, we
began to attract a significant user
base, and started to offer a SMS-
based service. Today, our service
has become the most important
market price index for beans and
pulses in Myanmar.
In 2009, we launched a
subsidiary called Blue Ocean
Operating Management, the main
element of which is a call centre.
I became interested in the call
centre business after I returned
from the Philippines in 2004. I
proposed launching a call centre
to the Ministry of Communications
and Information Technology, and
we opened for business in 2011.
Blue Ocean now operates around
the clock with some 300 workers
offering IT support as well as call
centre services.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Now, U Win Htain Win, Please.
U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: Im from Mandalay, and I passed my high
school examinations in 1995. Up to that point, I had never been
a particularly successful student and wasnt very ambitious.
The following year, I opened a bookstore which gave me
lots of time to read. I became inspired by reading Myanmar
Dhana (Myanmar Wealth), which was the only magazine of its
kind in those days. Living Colour magazine was also an
inspiration to work hard and get ahead, but as my parents
werent in a position to help me, I didnt think I had much
chance of realizing my dreams.
The Mandalay Institute of Technology (MIT) closed just
three months after I enrolled as a first-year student.
Retrospectively, it was a blessing in disguise, because it gave
ACUMEN 55
me the opportunity to go to Yangon to study programming. I
loved it: I devoted all my time to learning how to code, day
and night for months on end. When MIT reopened, I enrolled
again just to pass the exam and get my formal qualifications. I
worked at another company as a programmer while I was
finishing my degree, and ended up staying with them for nine
years. Before I graduated, I won a number of scholarships, and
wasnt sure what to do next: stay with the company I was with,
go abroad to further my training, or establish a company of my
own. I chose the latter, and started a company called Gusto,
but it didnt work out because my programming background
didnt give me much in the way of business skills.
I had a hard time just staying afloat. It was depressing,
really. My father died in Mandalay just as I was getting the
business up and running, and when I was at home I received a
phone call from a student I used to teach IT skills to. He asked
me to help him prepare for an exam qualifying him to work in
Japan, and I started teaching just to pay the bills. Eventually, I
established a number of IT courses that covered topics not
available elsewhere. The courses really hit their stride in 2007,
when a lot of people wanted to go to Singapore and land high-
paying jobs in the ICT sector. Today, my training school has 70
computers and 27 employees.
In 2010, I went to Japan on an MBA scholarship, and
when I got back to Myanmar I decided to go into the software
business again. This time, I set up an IT consulting firm that
buys software from abroad and installs bespoke ICT solutions
for clients. My company was the first to introduce SAPs ERP
softward to Myanmar. Gusto now has two focus areas: education
and providing comprehensive software solutions for other
businesses.
June 2013
Dr Aung Tun Thet: Dr Aung Tun Thet: Dr Aung Tun Thet: Dr Aung Tun Thet: Dr Aung Tun Thet: Thank you for a comprehensive account of
how your business came about. Now, U Zaw Moe Thant, please
give us a bit of background on your business.
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: Well, the business isnt mine, per se. Im the
second-generation owner; my father founded ACE with just
two computers in a garage owned by his mother-in-law. I started
out with my father after passing my high school exams in
2000; I was his go-to office boy for a while. As back in those
days there was no email, my main job was to go around
delivering letters to other offices. From there, I learned how to
program and became a project manager. Now, ACE is mainly
involved in outsourcing, and our 350 employees provide
solutions to banks and retail outlets.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: When we talk about the IT industry, people
often hold the US - specifically Silicon Valley - as the model
the industry should follow everywhere. The concentration of
companies in Silicon Valley came about due to ingenious groups
of people working out of garages and such, as youve mentioned.
The quality of the universities these entrepreneurs graduated
from is an important factor, too - Stanford is at the heart of it in
Palo Alto - as was these entrepreneurs ability to access venture
capital.
American venture capital firms are coming to Myanmar -
perhaps attracted by the sheer number of promising young
entrepreneurs here. How did you get started? Did you have
access to venture capital or did you get your seed money on
your own?
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: In Myanmar, self-financing is the only
way we have to get started. Debt and equity are secured: the
collateral associated with bank loans here is astronomical, say,
above 10%, compared to 3% in foreign countries. As to equity
financing, we have no venture capital here. There are cases
where angel investors might take over a majority share or
even own 100% of a start-up. As for MIT, we started out with
our own savings and some financial support from our parents.
We kept some of profit as retained earnings which we then
fed back into the business, and we didnt use any of it to pay
ourselves a regular salary in the interest of growing the business.
B2B Talk
Nowadays, venture capital might be expected in the event of
an IPO; when the stock exchange is established some time
next year, this might become commonplace. Things will be
better for the next generation of businesspeople.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Now, U Tun Tun Naing, please.
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: Back in the bad old days, I had nobody to
lend me money. Fortunately, I was able to acquire a mobile
phone through a friend. I sold it for 3 million kyats, and I used
that money to start my business. When I needed more money,
I borrowed it from friends and private lenders, and had about
10 million kyats to start out with. It was really a struggle for
me, as a start-up businessman, and it toughened me to the
realities of doing business. Wed had no income since 2003, the
year we started out, until 2005. We had to borrow to pay our
employees. Later, consumer confidence allowed us to earn some
income. After 2012, a number of foreign companies, including
financial companies, came to us and expressed a desire to take
June 2013
Dr Aung Tun Thet: Dr Aung Tun Thet: Dr Aung Tun Thet: Dr Aung Tun Thet: Dr Aung Tun Thet: Thank you for a comprehensive account of
how your business came about. Now, U Zaw Moe Thant, please
give us a bit of background on your business.
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: Well, the business isnt mine, per se. Im the
second-generation owner; my father founded ACE with just
two computers in a garage owned by his mother-in-law. I started
out with my father after passing my high school exams in
2000; I was his go-to office boy for a while. As back in those
days there was no email, my main job was to go around
delivering letters to other offices. From there, I learned how to
program and became a project manager. Now, ACE is mainly
involved in outsourcing, and our 350 employees provide
solutions to banks and retail outlets.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: When we talk about the IT industry, people
often hold the US - specifically Silicon Valley - as the model
the industry should follow everywhere. The concentration of
companies in Silicon Valley came about due to ingenious groups
of people working out of garages and such, as youve mentioned.
The quality of the universities these entrepreneurs graduated
from is an important factor, too - Stanford is at the heart of it in
Palo Alto - as was these entrepreneurs ability to access venture
capital.
American venture capital firms are coming to Myanmar -
perhaps attracted by the sheer number of promising young
entrepreneurs here. How did you get started? Did you have
access to venture capital or did you get your seed money on
your own?
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: In Myanmar, self-financing is the only
way we have to get started. Debt and equity are secured: the
collateral associated with bank loans here is astronomical, say,
above 10%, compared to 3% in foreign countries. As to equity
financing, we have no venture capital here. There are cases
where angel investors might take over a majority share or
even own 100% of a start-up. As for MIT, we started out with
our own savings and some financial support from our parents.
We kept some of profit as retained earnings which we then
fed back into the business, and we didnt use any of it to pay
ourselves a regular salary in the interest of growing the business.
B2B Talk
Nowadays, venture capital might be expected in the event of
an IPO; when the stock exchange is established some time
next year, this might become commonplace. Things will be
better for the next generation of businesspeople.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Now, U Tun Tun Naing, please.
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: Back in the bad old days, I had nobody to
lend me money. Fortunately, I was able to acquire a mobile
phone through a friend. I sold it for 3 million kyats, and I used
that money to start my business. When I needed more money,
I borrowed it from friends and private lenders, and had about
10 million kyats to start out with. It was really a struggle for
me, as a start-up businessman, and it toughened me to the
realities of doing business. Wed had no income since 2003, the
year we started out, until 2005. We had to borrow to pay our
employees. Later, consumer confidence allowed us to earn some
income. After 2012, a number of foreign companies, including
financial companies, came to us and expressed a desire to take
ACUMEN 57
to grow considerably. I think young people need to come up
with original ideas and develop a strong consumer base to
prompt exponential growth.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: The President has mentioned good
governance in his speeches as of late. As I see it, notions of
good governance extend to the IT sector, which is of high
importance globally. What I want to know is, what is happening
in the IT industry domestically? What kind of hitches and
glitches do we need to sort out? People speak of Silicon Valley
or Bangalore, but even our next door neighbour, Thailand, is
far more advanced than we are in this field. And I dont even
need to mention how advanced Singapore is. There also isnt
much of a legal infrastructure in place to facilitate the growth
of the IT industry in Myanmar. What are your thoughts on
this?
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: The biggest problem most software
companies face is the unavailability of skilled and experienced
out a stake in our business or launch a joint venture with us.
But things were very different in the past.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: U Win Htain Win, your thoughts?
U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: I also started out with just 5 computers,
which I purchased with my own money earned through on-
the-job training in Japan. But it was a struggle just to stay
afloat, even for a few months, despite the fact that I had workers
to pay. Organic growth was the only thing I could pursue as I
had no external investors to help me out financially. As it stands
today, were in need of venture capital - a financing source, if
you will.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: U Zaw Moe Thant, please.
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: All of us were in the same boat back then.
As U Tun Tun Naing said, were now fairly well-established,
and if a foreign investor were to approach us we could expect
U Tun Tun Naings Yadanarpon call center is a prime example of the service industrys potential for
expansion using information technology.
June 2013
workers, as well as employee retention - those with the skills
would rather work abroad for more money. The salary gap
between Myanmar and other countries makes retention a
challenge, and highly skilled people are curious about the outside
world in any case. Id also like to point out that 90% of software
revenue in Myanmar comes from the private sector; theres
practically no government spending on IT infrastructure. They
need to budget for software purchases; India, for example, is
already well ahead of us. IT companies in The Philippines and
Vietnam enjoy government support, whereas we do not. The
IT industry in Myanmar is plagued by frequent power shortages,
slow internet speeds, etc. In other countries, IT businesses are
given tax exemptions, special software parks - advantages that
allow them to set up shop at a lower cost. We have to spend a
great deal on things like company registration - which costs
about 105 million kyats.
The biggest bottleneck we have to contend with is
Myanmars inadequate infrastructure, which makes it difficult
to apply the latest technologies, such as cloud services. The
telecom law needs to allow for the creation of two separate
bodies: a regulator to enforce laws, and an operator to implement
them. Thats the only way we, in the ICT industry, will be able
to provide services of a reasonable quality. The way it is now,
with the government providing services and also regulating
them, its unlikely that the quality of service will be particularly
high. Access to financing is important, too its crucial for
start-ups to be successful.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Ive heard people complain that educated
people in Myanmar cant find employment, and Ive also heard
businesspeople complain that there is a lack of skilled workers
for their businesses. To me, this indicates that the teaching
profession and the world of business are separate worlds with
no lines of communication between them. Schools teach certain
IT-related courses, but the skills they teach are not in demand
in the private sector. Its a question of bridging the gap: students
should be given an opportunity to receive practical training as
apprentices in the industries theyre trying to get into. Id also
like to point out that we need to avoid conflicts of interest:
when youre a manager, administrator, controller and lawmaker
all in one, it will raise suspicions about the way the business is
run even if nothing is ethically wrong in practice. Also, Ive
heard people complain about the fact that interest rates in
Myanmar are so high that it negatively impacts Myanmars
competitiveness. Solutions for IT should be multi-sectoral, and
should involve the ideas of bankers, developers, educators and
businesspeople. U Tun Tun Naing, what do you think should
be done to further Myanmars ICT development?
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: I think the most important thing to point out
is that since the year 2000, government support for the ICT
sector has been essentially zero. In Silicon Valley and Bangalore,
governments have a keen interest in supporting the IT industry,
whereas in Myanmar there is no venture capital, no tax
exemption. Its all you need to help yourself, were not there
for you, and its tough going. In other countries, its possible to
get an Int ernet
connection in one day,
and when consumers
buy mobi l e phones,
youre assigned a public
IP address with it. Here,
it takes a million forms
and months of waiting.
For obvious rea-
sons, IT-related busi-
nesses depend on reli-
able Internet access to
survive. In our country,
its difficult to get Inter-
net access in the first
place, and when we do,
speeds are slow. I know
some businessmen who
go abroad to do what
we cant here in Myan-
mar. The government
has organized some
workshops - some of
which Ive attended -
June 2013
workers, as well as employee retention - those with the skills
would rather work abroad for more money. The salary gap
between Myanmar and other countries makes retention a
challenge, and highly skilled people are curious about the outside
world in any case. Id also like to point out that 90% of software
revenue in Myanmar comes from the private sector; theres
practically no government spending on IT infrastructure. They
need to budget for software purchases; India, for example, is
already well ahead of us. IT companies in The Philippines and
Vietnam enjoy government support, whereas we do not. The
IT industry in Myanmar is plagued by frequent power shortages,
slow internet speeds, etc. In other countries, IT businesses are
given tax exemptions, special software parks - advantages that
allow them to set up shop at a lower cost. We have to spend a
great deal on things like company registration - which costs
about 105 million kyats.
The biggest bottleneck we have to contend with is
Myanmars inadequate infrastructure, which makes it difficult
to apply the latest technologies, such as cloud services. The
telecom law needs to allow for the creation of two separate
bodies: a regulator to enforce laws, and an operator to implement
them. Thats the only way we, in the ICT industry, will be able
to provide services of a reasonable quality. The way it is now,
with the government providing services and also regulating
them, its unlikely that the quality of service will be particularly
high. Access to financing is important, too its crucial for
start-ups to be successful.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Ive heard people complain that educated
people in Myanmar cant find employment, and Ive also heard
businesspeople complain that there is a lack of skilled workers
for their businesses. To me, this indicates that the teaching
profession and the world of business are separate worlds with
no lines of communication between them. Schools teach certain
IT-related courses, but the skills they teach are not in demand
in the private sector. Its a question of bridging the gap: students
should be given an opportunity to receive practical training as
apprentices in the industries theyre trying to get into. Id also
like to point out that we need to avoid conflicts of interest:
when youre a manager, administrator, controller and lawmaker
all in one, it will raise suspicions about the way the business is
run even if nothing is ethically wrong in practice. Also, Ive
heard people complain about the fact that interest rates in
Myanmar are so high that it negatively impacts Myanmars
competitiveness. Solutions for IT should be multi-sectoral, and
should involve the ideas of bankers, developers, educators and
businesspeople. U Tun Tun Naing, what do you think should
be done to further Myanmars ICT development?
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: I think the most important thing to point out
is that since the year 2000, government support for the ICT
sector has been essentially zero. In Silicon Valley and Bangalore,
governments have a keen interest in supporting the IT industry,
whereas in Myanmar there is no venture capital, no tax
exemption. Its all you need to help yourself, were not there
for you, and its tough going. In other countries, its possible to
get an Int ernet
connection in one day,
and when consumers
buy mobi l e phones,
youre assigned a public
IP address with it. Here,
it takes a million forms
and months of waiting.
For obvious rea-
sons, IT-related busi-
nesses depend on reli-
able Internet access to
survive. In our country,
its difficult to get Inter-
net access in the first
place, and when we do,
speeds are slow. I know
some businessmen who
go abroad to do what
we cant here in Myan-
mar. The government
has organized some
workshops - some of
which Ive attended -
ACUMEN 59
but I dont think anything substantial has come of them. The
government seems to think that IT is all about hardware. The
notion of maintenance contracts for software is also problem-
atic - if software stops working, software companies wont come
here to fix it. That in itself creates additional costs for Myan-
mar businesses. And the authorities have no idea about IT - a
lack of qualified decision makers has lead to bad IT policy in
Myanmar.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Not long ago, the President spoke of delays
associated with developing Myanmars ICT infrastructure. His
statements indicate that theres a problem somewhere in the
process of getting changes made. As you said, some people,
when they think of IT, only think of hardware. As I like to say,
IT isnt hardware, its thinking. Without Mans thinking, a
machine - which is what software is, technically - is of no use,
irrespective of how expensive is. What you mentioned about
maintenance contracts is a serious issue, and has been for a
while. Years ago, we had the same problems with imported
tractors. Now, U Htain Win, please.
U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: As for the obstacles that have been mentioned
so far, Id like to add the issue of available space. Companies
like MIT or ACE have two or three hundred employees at most,
which is a miniscule amount compared to what companies in
Vietnam, say, would have. Even with those small numbers, its
difficult to find comfortable space to do work in. With incoming
foreign investors likely to take over office space at market
rates, local IT businesses will not be able to hold on, so to
speak. The government needs to make such spaces available
to us; the hotel sector, for example has dedicated hotel zones,
as do manufacturers. The ICT park in Yangon, as it stands
today, is too small for the ICT sectors projected growth. If the
basics cost too much, we wont have any money left over for
The Myanmar ICT Park in Hlaing township is
home to many IT startups, but there are fears it is
too small to keep up with demand
June 2013
innovation. And weve been talking about finding qualified
people, but how do we address this? Its high time the
government started to encourage the private sector to take off;
in India, Malaysia and Singapore, the government has
encouraged public sector participation in education for a long
time, and its time a similar model is implemented here.
As far as my company is concerned, we cant find skilled
technicians in-country, so we have to bring in consultants from
other countries at exorbitant costs. We need to come up with
less costly ways to promote the transfer of knowledge to
Myanmar.
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: HR is a tricky issue, and it costs a great
deal to develop competent workers. We cant use graduates
straight out of school; we need to train them for about eight
months. They tend to leave us after about three years; retention
is difficult. All of this means that HR development is extremely
costly.
Although we can theoretically do a lot in Myanmar, we
are limited by the shoddiness of the infrastructure. The
conditions arent conducive to us doing our jobs effectively.
And this is problematic, because Myanmar could theoretically
be a good outsourcing destination.
We also have problems when it comes to importing
hardware. Service companies, like IT companies, are not eligible
for import licences. This means we have to apply for these
licences by using other companies, which adds to our expenses
and in turn puts an extra financial burden on the end customer.
Registration fees for starting businesses are high, too: in other
countries, its possible to do so for only a few dollars.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: This discussion is great as it should help
the authorities concerned the President, for example, to make
it possible for people to start businesses with limited resources
at their disposal. As far as HR is concerned, I agree we need
to develop skilled workers through public-private partnerships.
As far as IT education and training are concerned, the
government wont be able to do everything; well need to do
some things on our own. We need to substantively reform
business practices across the board in Myanmar, not just in IT
but in other sectors, to prepare us for when AEC and AFTA
(ASEAN economic community/free trade area) go into effect in
2015. What are the challenges for tourism? The banking sector?
To airlines, because an open skies agreement is set to go into
effect?
If big foreign businesses come in, itll put local businesses
under strain take hoteliers, for example. I read recently that
Vietnamese SMEs are having a tough time competing with the
big international firms that have made inroads into that country
in recent years. But foreign investment needs to come and a
lot of it and it should be targeted toward sectors that need it
most. What do you think would happen to companies like yours
June 2013
innovation. And weve been talking about finding qualified
people, but how do we address this? Its high time the
government started to encourage the private sector to take off;
in India, Malaysia and Singapore, the government has
encouraged public sector participation in education for a long
time, and its time a similar model is implemented here.
As far as my company is concerned, we cant find skilled
technicians in-country, so we have to bring in consultants from
other countries at exorbitant costs. We need to come up with
less costly ways to promote the transfer of knowledge to
Myanmar.
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: HR is a tricky issue, and it costs a great
deal to develop competent workers. We cant use graduates
straight out of school; we need to train them for about eight
months. They tend to leave us after about three years; retention
is difficult. All of this means that HR development is extremely
costly.
Although we can theoretically do a lot in Myanmar, we
are limited by the shoddiness of the infrastructure. The
conditions arent conducive to us doing our jobs effectively.
And this is problematic, because Myanmar could theoretically
be a good outsourcing destination.
We also have problems when it comes to importing
hardware. Service companies, like IT companies, are not eligible
for import licences. This means we have to apply for these
licences by using other companies, which adds to our expenses
and in turn puts an extra financial burden on the end customer.
Registration fees for starting businesses are high, too: in other
countries, its possible to do so for only a few dollars.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: This discussion is great as it should help
the authorities concerned the President, for example, to make
it possible for people to start businesses with limited resources
at their disposal. As far as HR is concerned, I agree we need
to develop skilled workers through public-private partnerships.
As far as IT education and training are concerned, the
government wont be able to do everything; well need to do
some things on our own. We need to substantively reform
business practices across the board in Myanmar, not just in IT
but in other sectors, to prepare us for when AEC and AFTA
(ASEAN economic community/free trade area) go into effect in
2015. What are the challenges for tourism? The banking sector?
To airlines, because an open skies agreement is set to go into
effect?
If big foreign businesses come in, itll put local businesses
under strain take hoteliers, for example. I read recently that
Vietnamese SMEs are having a tough time competing with the
big international firms that have made inroads into that country
in recent years. But foreign investment needs to come and a
lot of it and it should be targeted toward sectors that need it
most. What do you think would happen to companies like yours
ACUMEN 61
if, say, Microsoft or Dell made inroads into Myanmar in a big
way?
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: We cannot, and should not, prevent these
software giants from coming in. Weve spoken with Microsoft,
and weve learned that Microsoft isnt going to rigidly enforce
intellectual property rights here. To reduce piracy, they want
to educate our people and reduce the cost of legally purchasing
software for those that would otherwise have to resort to piracy.
This helps the big multinationals as much as it helps Myanmar.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: U Tun Tun Naing, what would it mean for
your business if foreign investors were to come in?
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: As far as were concerned, we welcome
foreign investment the right kind of investment, that is. In
2012, when this country started opening up, a large number of
foreign investors came. Microsoft and Google werent among
them; I have a feeling they are waiting to see how things turn
out before they make any kind of significant investment - with
regards to the legal framework, for example. As we dont have
much experience dealing with foreign firms, we run the risk of
being conned by dishonest partners. As well, the government
has given foreign investors undue privileges over domestic
firms, such as a five-year tax holiday; the tax burden has been
huge on us. Plus, foreign companies are given land for free,
Information technologies open up economic possibilities that were previously unimaginable in an unwired
economy.
June 2013
whereas we have to pay high rents! The government needs to
take action to protect local SMEs.
U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: We welcome top-tier companies like
Microsoft, as well as second-tier companies. What matters is
establishing a level playing field, where privileges like tax
exemptions can be enjoyed by locals and foreigners alike. Thats
not enough to rectify the damage done to local firms already
who have had to pay a lot of taxes and incurred undue costs
for generators, voltage regulators, and shipping, not to mention
mobile phones that, in the past, used to cost two or three million
kyat each.
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: I welcome foreign IT companies, because
having foreign IT companies in Myanmar would bring about
technology transfers, and they might even provide IT
scholarships for Myanmar students to study abroad. We have a
lot to learn from other countries.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: A level playing field and the financial
support of the state we need to bring both about any way we
can. Now lets talk about the last item on the agenda business-
to-business (B2B). There isnt enough awareness of B2B issues
in Myanmar, because in the past the government had such a
dominant role in the economy. For real development to occur,
B2B is indispensible. U Zaw Moe Thant, what are your
experiences when it comes to business-to-business partnerships?
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: There are a lot of B2B type relationships
in the IT industry that have come about through industry
associations, such as the MICTDC (Myanmar ICT Development
Corporation). In the IT industry, B2B relations are indispensible;
every successful project has many subcontractors. Thats always
the way weve done business, and weve been fairly successful
at it.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: U Tun Tun Naing?
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: B2B relations were the most important
thing for me when I was starting out. Its possible to earn as
much from one corporate client as it would be from hundreds
of individual customers - by, for example, providing companies
with an entire suite of ICT-related products. Our approach to
B2B relations is to see what we can do to help other companies
grow, rather than just sell things.
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: As was mentioned before, IT companies
working together have always been different from other sectors:
we collaborate regularly on various projects. Most IT companies
specialize in one or two things, and we work with other
companies that need our expertise. In networking, for instance,
companies that write software work with companies that
integrate systems and develop infrastructure thats B2B
relations at work. Even companies like ACE and MIT that
are on some levels rivals have to work with one another. At
the same time, we need to ensure that this collaboration doesnt
eventually turn into collusion and require anti-trust regulations
to be invoked. Competition should be fair and healthy with a
sense of mutual respect.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: I appreciate all your views and suggestions.
I take pride in seeing you - young men - in highly responsible
positions at the forefront of Myanmars development. Walk on.
Our countrys future lies with you.
Thank you all. A
In Myanmar there is no venture
capital, no tax exemptions. Its all
you need to help yourself, were
not there for you, and its tough
going. In other countries, its
possible to get an Internet
connection in one day... here, it
takes a million forms and months
of waiting.
June 2013
whereas we have to pay high rents! The government needs to
take action to protect local SMEs.
U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: U Win Htain Win: We welcome top-tier companies like
Microsoft, as well as second-tier companies. What matters is
establishing a level playing field, where privileges like tax
exemptions can be enjoyed by locals and foreigners alike. Thats
not enough to rectify the damage done to local firms already
who have had to pay a lot of taxes and incurred undue costs
for generators, voltage regulators, and shipping, not to mention
mobile phones that, in the past, used to cost two or three million
kyat each.
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: I welcome foreign IT companies, because
having foreign IT companies in Myanmar would bring about
technology transfers, and they might even provide IT
scholarships for Myanmar students to study abroad. We have a
lot to learn from other countries.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: A level playing field and the financial
support of the state we need to bring both about any way we
can. Now lets talk about the last item on the agenda business-
to-business (B2B). There isnt enough awareness of B2B issues
in Myanmar, because in the past the government had such a
dominant role in the economy. For real development to occur,
B2B is indispensible. U Zaw Moe Thant, what are your
experiences when it comes to business-to-business partnerships?
U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: U Zaw Moe Thant: There are a lot of B2B type relationships
in the IT industry that have come about through industry
associations, such as the MICTDC (Myanmar ICT Development
Corporation). In the IT industry, B2B relations are indispensible;
every successful project has many subcontractors. Thats always
the way weve done business, and weve been fairly successful
at it.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: U Tun Tun Naing?
U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: U Tun Tun Naing: B2B relations were the most important
thing for me when I was starting out. Its possible to earn as
much from one corporate client as it would be from hundreds
of individual customers - by, for example, providing companies
with an entire suite of ICT-related products. Our approach to
B2B relations is to see what we can do to help other companies
grow, rather than just sell things.
Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: Dr. Tun Thura Thet: As was mentioned before, IT companies
working together have always been different from other sectors:
we collaborate regularly on various projects. Most IT companies
specialize in one or two things, and we work with other
companies that need our expertise. In networking, for instance,
companies that write software work with companies that
integrate systems and develop infrastructure thats B2B
relations at work. Even companies like ACE and MIT that
are on some levels rivals have to work with one another. At
the same time, we need to ensure that this collaboration doesnt
eventually turn into collusion and require anti-trust regulations
to be invoked. Competition should be fair and healthy with a
sense of mutual respect.
Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: Dr. Aung Tun Thet: I appreciate all your views and suggestions.
I take pride in seeing you - young men - in highly responsible
positions at the forefront of Myanmars development. Walk on.
Our countrys future lies with you.
Thank you all. A
In Myanmar there is no venture
capital, no tax exemptions. Its all
you need to help yourself, were
not there for you, and its tough
going. In other countries, its
possible to get an Internet
connection in one day... here, it
takes a million forms and months
of waiting.
June 2013
Culture
In 1894 - nine years after King Thibaw,
the last king of Burma - was sent into
exile in India, artists from the former
royal court were hard at work copying
the artifacts of the old order. Among these
objects was a book of knowledge meant
for courtiers and the royal family's chil-
dren, containing over 400 colourful
sketches with short descriptions below
each. The British eventually took the
book to the Colonial Library in London,
a fate that befell many precious objects
from across the colonised world.
In 1952, Dr. Than Tun, a profes-
sor of history from Myanmar, visited the
library and was granted permission to
take photographs of the book. Upon his
return to Myanmar, he distributed
copies of the work to local scholars.
A few lines of explanation about
the history of the Thai kingdom of Ayut-
thaya are necessary here. When the "fa-
ther king" of Ayutthaya, Boromakot, went
to the celestial abode, he left behind two
sons. The eldest, Prince Ekadath, was not
fit for the throne. So the father king com-
manded his ministers to put the young
Prince Utumpon (Chaofa Dawk Madu-
wa) on the throne after his passing.
Chaofa Ekadath allegedly died at the
fall of Ayutthaya in 1767, according to
the Myanmar historical record. Thus, it
June 2013
ACUMEN 65
was Chaofa Utumpon that was more like-
ly to have died at Amarapura than his
brother.
Prince Utumpon was humble and
simple. He had no desire to be king - he
was more inclined to become a monk -
but he was beloved by his people, and
had to obey his father's wishes by tak-
ing over the throne.
According to legend, all the fig trees
in the kingdom flowered in full when
Prince Utumpon was born - a curious
occurrence, as it was not the season
when fig trees generally flower. This was
regarded as a good omen, and the new-
born prince was alternately named Cha-
ofa Dawk Maduwa, meaning "fig flow-
er" in Thai.
Chaofa Ekadath had long been jeal-
ous of his younger brother's successes.
Soon after the young prince assumed the
throne, Ekadath hatched a plot to seize
it for himself. When Chaofa Utumpon
heard of his brother's machinations, he
voluntarily stepped down and entered
the monkhood, as he had never been
passionate about ruling at the best of
times. But it was at this point that the
Myanmar army came knocking at the
gates of Ayutthaya, and it became clear
that Ekadath could not adequately de-
fend the kingdom.
Desperate, Ekadath called on Prince
Utumpon to come out of the monastery
and reassume the throne on behalf of
the people. Utumpon's leadership allowed
the Kingdom of Ayutthaya to get orga-
nized, and raise the spirits of its soldiers
in order to mount a robust defence
against the invaders from Myanmar. Ser-
endipitously, the Myanmar king leading
the attack fell ill, and the Myanmar army
retreated to Amarapura.
With the forces from Myanmar gone,
Ekadath announced his desire to be on
the throne once again, and Utumpon
voluntarily stepped down as he had be-
fore. Taking refuge in a temple known
ACUMEN 65
June 2013
as Wat Pradu Rongdham, he offered his
brother a clear path to power, and de-
clared that he would never shed his
monastic robes again.
Ki ng Ekadat h
found himself in a dif-
ficult position. His mor-
al authority had weak-
ened greatly by this
point, and he found it
difficult to mobilise the
ci t y' s popul at i on
against the threat from
Myanmar. Weak mo-
rale and rampant dis-
sent t hreat ened t o
bring down the king-
dom. Once again, Eka-
dath called upon his
little brother to assume
the throne. Utumpon,
deeply ensconced in
monastic life, refused.
His identity re-
vealed by a captured
offi cer of the Thai
court , he recei ved
medical attention but
died soon after the fall of the city. He
was cremated with the full honours be-
stowed upon a king. So while legend has
it that Ekadath died in Amarapura, the
historical record would seem to show
otherwise.
Utumpon and his people were
brought to Ava (Innwa). They encoun-
tered tremendous illness and hardship
along the way, and many did not sur-
vive the journey. The Myanmar invad-
ers suffered alongside their Thai captives.
According to the Titzatta Dipani, a courtly
text on the supernatural written by an
aide to King Thaibaw, one Myanmar
soldier appeared to his family as a ghost.
Another soldier fell ill and was left be-
hind, but, managing to recover many
months later, eventually returned to his
native village. His wife, thinking he had
died at the front, found a new spouse in
his absence. Upon news of his return,
the three were not sure how to sort out
their predicament, and the husband asked
for the intercession of a prominent judge
in the matter. There are many other sto-
ries relating to the aftermath of the siege
of Ayutthaya that went unrecorded; some
The early years of King Ekadath's
rule were relatively tranquil. But before
long, trouble began to brew on the King-
dom's northern frontier. An army sent
by Ayutthaya's Myanmar foes had been
camped out for two years in what had
been the Lanna Kingdom, near Chiang
Mai, making careful preparations for a
final, no-holds-barred assault on Ayut-
thaya. Alarmed, Ekadath recruited forc-
es in the north, stockpiled provisions, and
established garrisons at both Ayutthaya
itself and at Uttaradit, close to the terri-
tory controlled by the Myanmar army.
But despite his preparations, a second
Myanmar force swept up from the south,
and Ekadath found himself facing both
the northern and southern factions at the
gates of Ayutthaya.
A depiction of Mount Meru - Win Maung/Tam-
pawaddy
Culture
The Myanmar forces im-
posed a siege upon Ayut-
thaya, which lasted for 14
months. Unable to hold out
any longer, the 417-year-
old city fell on April 7, 1767.
King Ekadath was found
incognito at the city gates,
starving and emaciated, by
Myanmar soldiers.
ACUMEN 67
the royal court of Ava,
and others were post-
ed to just outside of the
city limits. These set-
tlements were located
just north of the city.
In 1859, these settle-
ments became the cen-
tre of Mandalay, which
itself enjoys the dis-
tinction of being My-
anmar's last royal cap-
ital.
Many of these Thai
"captives" settled in
different parts of My-
anmar. A number of
Thai villages were
found along the Mu
river; another group of
Thais went very far up
the Chindwin river,
and founded a village
opposite the town of
Maukkadaw in Sagaing divison. Panset
village, as it was known, was discovered
by the British Lt. Pemberton, who ar-
rived in Ava after travelling by foot from
Manipur to Ava on August 3, 1830. The
Thais are still there, and are multiply-
ing: A visit by a medical team in Octo-
ber 2002 found that there are now three
villages populated by the descendants of
the court of Ayutthaya at Panset.
Utumpon, the monk king, was also
cared for upon his arrival at Ava. Aside
from his period of residence at Ava, he
also lived at Amarapura, across the riv-
er in Sagaing, and in the royal district
north of Ava that eventually became in-
corporated into the city of Mandalay.
Utumpon died during the reign of
King Badon(1782-1819), and was cremat-
ed in Linzin-gon cemetery, the Myanmar
word for Lan Xang, the Lao kingdom
centred around what is today Luang Pra-
bang. The name is significant, as it is
reflective of the diverse populations that
lived in the area at time. Situated at the
Western end of the iconic U Bein's
Bridge, the cemetery was used by the
Thais, Lao, Muslims, Armenians and Chi-
nese that resided in the royal city of
Amarapura.
In January 1987, armed with
only the tiniest of clues from the afore-
mentioned book, I went out in search of
the Thai king's tomb in Linzin-gon cem-
etery. An eminent scholar, U Pana, now
85 years old, living close by, led me to a
pillar-shaped tomb. Daw Aye, a 101-year-
old ladywho lived 2 furlongs north of
the pillar, testified that she had been told
since her school days that the pillar was
Utumpon's grave. Although there is no
stone inscription to back this up, many
elderly people in the area repeated this
story. So while there is no tangible evi-
dence that this pillar is, in fact, related
Utumpon, circumstantial evidence led me
identify it as the Thai king's tomb.
The tomb's pillar shape represents
Mount Meru, as evidenced by indenta-
tions at the pillar's four cardinal points,
symbolising the abodes of Four Guard-
ians of the world (known as Catu-Maha-
of these have been incorporated into oral
histories and legends.
Upon their arrival at the royal city
of Ava, the ladies of the Thai royal fam-
ily were given temporary accommoda-
tion within the 'drum-shaped' walls of
the inner city. The princes and their men
were housed inside the fort itself, and
the rest of the Thai captives stayed out-
side. The officials at Ava were instruct-
ed to see to it that the Thais were made
comfortable and, after a while, they were
granted permanent quarters in the city.
Some of the Thai artisans came to serve
Lotus bud tomb housing the ashes of Phra Khru
Luang Phoun Samek, Champasak, Laos - Wali-
lak Song Siri
June 2013
rits). The symbolism is intended to al-
lude to the notable mythological figures,
such as Rev. Rahula, the son of the Bud-
dha, who were cremated on Mount Meru.
Similar pillar tombs are found in Cham-
pasak in Laos, throughout Isan (north-
east Thailand), and also in Myanmar.
In 1989, I wrote an article entitled
"The King's Tomb?," which was pub-
lished in Today magazine in Myanmar.
It was translated into Thai and published
in a Thai journal, which increased the
profile of the tomb at Amarapura. Many
Thai tourists have subsequently made the
pilgrimage to Amarapura to pay their
respects. Direct flights from Bangkok and
Chiang Mai to Mandalay have helped
promote cultural tourism in this regard.
In February 2013, a joint Thai-Myanmar
expedition of scholars and architects
came to the site to find out if the tomb is,
in fact, King Utumpon's. The excavation
has yet to turn up any solid evidence
linking the pillar to the Monk King, but
the researchers feel that they will ulti-
mately find what they are looking for.
This effort by scholars, historians,
architects and archeologists from both
countries is the first of its kind, and there
will be other chances in the future to do
further research. As culture knows no
borders, and Thailand and Myanmar
have a long shared history, this sort of
cooperation is nothing if not positive.
While I have only touched on Thai set-
tlements in Myanmar for the purposes
of this article, there is evidence of wide-
spread Myanmar settlement in Thailand
as well, especially in the north of the
country. Many popular foods in Thailand
were first introduced by settlers from
Myanmar.
The Mayor of Greater Mandalay has
pledged to protect the site if anything of
significance is found there. He indicated
his desire to construct a park around the
old tomb, which will serve as a tangible
example of the goodwill and friendship
between Thailand and Myanmar. A
A rough sketch of the area under excavation, Lizin-gon cemetery, February 2013.
Culture
June 2013
Dining Out
June 2013
ACUMEN 71
F
uji House has been a fixture at 116
University Avenue in Yangon for
nearly 16 years. The restaurant is located
in an affluent area of Yangon surrounded by
car showrooms, embassies and the prestigious
University of Foreign Languages. Befitting its
stately environs, it is a classy and elegant
establishment. Despite its name, Fuji House
offers a wide variety of cuisines, including
Western, Chinese, Thai, Korean, and, of course,
Japanese.
While the food is diverse and authentic,
what really sets Fuji House apart is the
atmosphere its management has cultivated. Its
well-manicured lawns, luxuriant bamboo grove
and pond all lend to its atmosphere of refined
calm and tranquility. The restaurant is best
known for its authentic Japanese-style sukiyaki
and hot-pot dishes, as well as its high-quality
coffees. Fuji House uses premium Blue
Mountain coffee for all of its coffee drinks, so
customers can be assured of quality and good
taste in every drink they purchase. The bar is
also renowned for its extensive cocktail menu.
The restaurant has multiple rooms for
various functions and events, including a
dedicated hot-pot room, a take-out coffee station
and a special room for private functions, as well
as the regular a-la-carte dining room. To attract
the lunch crowd from the American embassy
next door, Fuji House offers a Japanese lunch
special bento box, which offers reasonably good
value at K8000.
Fuji House has become a popular venue
for special events, and has become a magnet
for the areas elite to socialize and relax. With
its diverse and high-quality menu, wide selection
of dri nks and ref i ned and di st i nct i ve
atmosphere, Fuji House has managed to win
the hearts of expats and locals alike. A
ACUMEN 71
Yangon - Guangzhou
MON CZ - 3056 17:40 22:15
TUE 8M - 711 08:40 13:15
WED CZ - 3056 11:20 15:50
THU 8M - 711 08:40 13:15
FRI CZ - 3056 17:40 22:15
SAT CZ - 3056 11:20 15:50
SUN 8M - 711 08:40 13:15
Guangzhou - Yangon
MON CZ - 3055 14:45 16:35
TUE 8M - 712 14:15 15:50
WED CZ - 3055 08:40 10:30
THU 8M - 712 14:15 15:50
FRI CZ - 3055 14:45 16:35
SAT CZ - 3055 08:40 10:30
SUN 8M - 712 14:15 15:50
Yangon - Phnom Penh
WED 8M - 403 16:50 19:15
SAT 8M - 403 16:50 19:15
Phnom Penh - Yangon
WED 8M - 404 20:15 21:40
SAT 8M - 404 20:15 21:40
Yangon - Taipei
DAILY CI - 7916 10:50 16:10
TUE BR - 288 11:35 17:20
FRI BR - 288 11:35 17:20
SAT BR - 288 11:35 17:20
Taipei - Yangon
DAILY CI - 7915 07:00 09:50
TUE BR - 287 07:45 10:35
FRI BR - 287 07:45 10:35
SAT BR - 287 07:45 10:35
Yangon - Kunming
DAILY MU - 2032 14:40 18:00
TUE CA - 906 14:15 17:35
WED CA - 906 14:15 17:35
MU - 2012 12:20 18:10
THU CA - 906 14:15 17:35
FRI 8M - 501 07:50 11:50
MH - 743 16:55 21:10
SAT 8M - 501 07:50 11:50
SUN MH - 743 16:55 21:10
Kuala Lumpur - Yangon
DAILY AK - 1420 15:05 16:15
AK - 1424 06:55 08:00
MH - 740 10:05 11:15
MON 8M - 502 12:50 13:50
TUE 8M - 502 12:50 13:50
MH - 742 14:45 15:55
WED 8M - 502 12:50 13:50
FRI 8M - 502 12:50 13:50
MH - 742 14:45 15:55
SAT 8M - 502 12:50 13:50
SUN MH - 742 14:45 15:55
Yangon - Singapore
DAILY 8M - 231 08:00 12:25
8M - 6232 11:30 16:05
SQ - 997 10:25 14:45
3K - 586 11:30 16:05
Y5 - 233 10:10 14:40
MI - 517 16:40 21:15
MON MI - 509 00:25 05:00
TUE MI - 509 00:25 05:00
FRI 8M - 233 15:05 19:30
SAT 8M - 233 15:05 19:30
MI - 509 00:25 05:00
SUN 8M - 233 15:05 19:30
MI - 509 00:25 05:00
Singapore - Yangon
DAILY 8M -232 13:25 14:50
8M - 6231 09:10 10:40
SQ - 998 07:55 09:20
MI - 518 14:20 15:45
3K - 585 09:10 10:40
Y5 - 234 15:35 17:05
MON MI - 520 22:10 23:35
FRI 8M - 234 20:30 21:55
MI - 520 22:10 23:35
SAT 8M - 234 20:30 21:55
MI - 520 22:10 23:35
SUN 8M - 234 20:30 21:55
MI - 520 22:10 23:35
D DD DDA AA AAY YY YYS SS SS FLIGHT FLIGHT FLIGHT FLIGHT FLIGHT DEP DEP DEP DEP DEP ARRI ARRI ARRI ARRI ARRI D DD DDA AA AAY YY YYS SS SS FLIGHT FLIGHT FLIGHT FLIGHT FLIGHT DEP DEP DEP DEP DEP ARRI ARRI ARRI ARRI ARRI D DD DDA AA AAY YY YYS SS SS FLIGHT FLIGHT FLIGHT FLIGHT FLIGHT DEP DEP DEP DEP DEP ARRI ARRI ARRI ARRI ARRI
Yangon - Bangkok (BKK)
DAILY TG - 302 14:55 16:50
TG - 304 09:50 11:45
TG - 306 19:45 21:40
PG - 702 10:30 12:25
PG - 704 18:20 20:15
PG - 706 07:15 09:30
8M - 331 16:30 18:15
8M - 333 08:20 10:05
Bangkok (BKK) - Yangon
DAILY TG - 301 13:00 13:45
TG - 303 07:55 08:50
TG - 305 17:50 18:45
PG - 701 08:50 09:40
PG - 703 16:45 17:35
PG - 705 20:15 21:30
8M - 332 19:20 20:05
8M - 334 11:30 12:15
Yangon - Bangkok (DMK)
DAILY FD - 2752 08:30 10:20
FD - 2754 17:50 19:35
FD - 2756 12:50 14:40
Bangkok (DMK) - Yangon
DAILY FD - 2751 07:15 08:00
FD - 2753 16:35 17:20
FD - 2755 11:35 12:20
Mandalay - Bangkok (DMK)
DAILY FD - 2761 10:45 13:10
Bangkok (DMK) - Mandalay
DAILY FD - 2760 08:50 10:15
Yangon - Kuala Lumpur
DAILY AK - 1421 16:45 21:00
AK - 1425 08:30 12:45
MH - 741 12:15 16:30
MON 8M - 501 07:50 11:50
TUE 8M - 501 07:50 11:50
MH - 743 16:55 21:10
WED 8M - 501 07:50 11:50
June 2013
International Flight Schedules
D DD DDA AA AAY YY YYS SS SS FLIGHT FLIGHT FLIGHT FLIGHT FLIGHT DEP DEP DEP DEP DEP ARRI ARRI ARRI ARRI ARRI D DD DDA AA AAY YY YYS SS SS FLIGHT FLIGHT FLIGHT FLIGHT FLIGHT DEP DEP DEP DEP DEP ARRI ARRI ARRI ARRI ARRI D DD DDA AA AAY YY YYS SS SS FLIGHT FLIGHT FLIGHT FLIGHT FLIGHT DEP DEP DEP DEP DEP ARRI ARRI ARRI ARRI ARRI
SAT CA - 906 14:15 17:35
SUN CA - 906 14:15 17:35
Kunming - Yangon
DAILY MU - 2031 13:30 14:00
TUE CA - 905 13:00 13:15
WED CA - 905 13:00 13:15
MU - 2011 08:35 11:30
THU CA - 905 13:00 13:15
SAT CA - 905 13:00 13:15
SUN CA - 905 13:00 13:50
Yangon - Beijing
TUE CA - 906 14:15 21:55
WED CA - 906 14:15 21:55
THU CA - 906 14:15 21:55
SAT CA - 906 14:15 21:55
SUN CA - 906 14:15 21:55
Beijing - Yangon
TUE CA - 905 08:05 13:15
WED CA - 905 08:05 13:15
THU CA - 905 08:05 13:15
SAT CA - 905 08:05 13:15
SUN CA - 905 08:05 13:15
Yangon - Chiang Mai
THU W9 - 9607 14:20 16:10
SUN W9 - 9607 14:20 16:10
Chiang Mai - Yangon
THU W9 - 9608 17:20 18:10
SUN W9 - 9608 17:20 18:10
Mandalay - Kunming
DAILY MU - 2030 14:40 17:20
Kunming - Mandalay
DAILY MU - 2029 13:55 13:50
Yangon - Hanoi
MON VN -956 19:10 21:30
WED VN -956 19:10 21:30
FRI VN -956 19:10 21:30
WED NH - 913 11:10 17:05
SAT NH - 913 11:10 17:05
Yangon - Hong Kong
MON KA - 251 01:10 05:45
TUE KA - 251 01:10 05:45
THU KA - 251 01:10 05:45
SAT KA - 251 01:10 05:45
Hong Kong - Yangon
MON KA -250 21:35 23:35
WED KA -250 21:35 23:35
FRI KA -250 21:35 23:35
SUN KA -250 21:35 23:35
Yangon - Frankfurt
WED DE - 2369 06:10 19:35
Frankfurt - Yangon
TUE DE - 2368 14:05 05:10+1
Mandalay - Bangkok (BKK)
DAILY 8M - 335 08:25 10:45
TUE TG - 782 09:30 11:55
WED TG - 782 09:30 11:55
FRI TG - 782 09:30 11:55
SAT TG - 782 09:30 11:55
SUN TG - 782 09:30 11:55
Bangkok (BKK) - Mandalay
DAILY 8M - 336 06:15 07:35
TUE TG - 781 07:25 08:50
WED TG - 781 07:25 08:50
FRI TG - 781 07:25 08:50
SAT TG - 781 07:25 08:50
SUN TG - 781 07:25 08:50
Mandalay - Singapore
DAILY 8M - 335 08:25 15:15
Singapore - Mandalay
DAILY 8M - 336 16:05 07:35
ACUMEN 75
SAT VN -956 19:10 21:30
SUN VN -956 19:10 21:30
Hanoi - Yangon
MON VN -957 16:35 18:10
WED VN -957 16:35 18:10
FRI VN -957 16:35 18:10
SAT VN -957 16:35 18:10
SUN VN -957 16:35 18:10
Yangon - Saigon
TUE VN -942 14:25 17:10
THU VN -942 14:25 17:10
SUN VN -942 14:25 17:10
Saigon - Yangon
TUE VN -943 11:40 13:25
THU VN -943 11:40 13:25
SUN VN -943 11:40 13:25
Yangon - Incheon
DAILY KE - 472 23:45 08:05+1
THU 0Z - 770 00:35 09:10
SUN 0Z - 770 00:35 09:10
Incheon - Yangon
DAILY KE - 471 18:40 22:55
WED 0Z - 769 19:50 23:25
SAT 0Z - 769 19:50 23:25
Yangon - Doha
DAILY QR - 619 08:15 11:15
Doha - Yangon
DAILY QR - 618 21:05 07:00+1
Yangon - Tokyo (NRT)
MON NH - 914 21:30 06:40+1
WED NH - 914 21:30 06:40+1
SAT NH - 914 21:30 06:40+1
Tokyo (NRT) - Yangon
MON NH - 913 11:10 17:05
June 2013
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June 2013

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Editors Note

It has been exciting times in Myanmar as of late. Since political and

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