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Attracting MICE: Trapping a Lucrative Tourism Market Segment

By
Aye Chan
-

Last May, Tiens, a Chinese conglomerate, treated its top performing employees to a four-day trip to France,

visiting Paris and southern France to celebrate its 20th anniversary. The 6,400 employees required 140 hotels for accommodation. The whole trip cost $19 million, small change for the billionaire-owner grateful to the contribution of his staff to the profitability and success of his conglomerate. If the personal funds spent by the employees are to be counted, the amount will be higher.

Also last May, ministers of the Asia-Pacific Economic Cooperation (APEC) member countries meet in the island resort of Boracay in the Philippines. Boracay Island is the most popular summer vacation place in the Philippines with its sugary-fine white beach. The organizers pampered the minis- ters and their staff with beach parties and tropical-themed festivities in the evening and between sessions, highlighting the country’s tourism tag line – It’s more fun in the Philippines!

The holiday trip to France and the APEC ministerial meeting in the Philippines are examples of meetings, incentives, confer ences and events (MICE), a lucrative tour- ism market segment. Corporations, professional and industry associations, private international organizations and multilateral organizations hold regular meetings, conferences, exhibits and events. They even give holiday trips as incentives to top per- forming personnel or as rest and recreation measures. In today’s harried environment, work-life balance is the mantra for corporations who would like to avoid burn-out of its employees. Also, to further push for higher productivity, top performers are given incentives to travel abroad to rest and renew their energy and motivate them to work harder.

Myanmar’s recent experience with MICE was during the hosting of ASEAN when it assumed chairmanship of the regional association for 2013-2014. The country hosted preparatory meetings and the main summit where heads of states not only of the 10-member countries, but also world leaders from the US, China, Japan and India. The successful handling of the ASEAN activities showed the country’s capacity to manage MICE. There is however a need to sustain the interest in the country’s capacity to host MICE clients.

Official data showed in 2014 there were 3 million tourists who visited the country and spent an estimated amount of $1.14 billion. Of the total number of tourists, 70% were from Southeast Asia, and the rest are from Europe. At present, Myanmar is attracting backpackers and group tours interested in its temples, remnants of colonial architecture and unexplored areas. Tourism development activities are thus geared towards addressing this market segment.

MICE, a more profitable market segment can become part of Myanmar’s tourism market. There are several reasons to develop the country as a MICE destination:

  • Participants to MICE have more purchasing power;
  • Participants stay several days in the venue and may extend more even after the event;
  • Satisfied MICE participants are good word-of-mouth marketing channels;
  • MICE are regular activities, and repeat customers can be expected.

The MICE market can be classified into three main categories. First are private companies. Continuing growth experienced by the Southeast Asian region is a reality that will support not only trade but also tourism. It will further be sustained by the ASEAN economic integration. Chinese and Indian companies are another source of customers as it shares common borders with the country. Western multinational companies with offices in the ASEAN region will also be a good source of MICE clients.

The second set are professional and industry associations – bankers and financial professionals, engineers, doctors, accountants, etc. both at the national level and regional levels meet regularly. These organizations meet not only as a function of an association but also organize conferences to introduce new technologies or enhance skills and capacities. Corporate sponsors also organize conferences and events to highlight their products and services, and these are attended by professionals using the products.

Advocacy groups and international development agencies are the third group. These include groups advocating for the environment, health, gender and other development issues.

The main question now is not how do we trap the MICE, but rather, is the government interested in making the country a primary MICE destination? The government and the various stakeholders in the tourism sector should decide if the market segment is worth exploring and serving. If it decides to develop itself as a MICE destination, the government and the various stakeholders have to consider the following:

Good and affordable facilities

The principal consideration is the venue. MICE require not only accommodation facilities, but the most important are the function rooms – a spacious plenary session hall that can accommodate a big number of participants. Space is important because in contemporary events, the activities will not be limited to sitdown meetings but will included groups dynamics that require physical activities and thus more space. Hotels make their ballroom double also as the plenary session halls. Adjacent rooms for small group or break-out sessions are also needed.

The function rooms should be complemented with good public address system. Another important support is translation services for conferences with different nationalities as participants. Internet connection is another element in the package that clients will look for in a venue.

Aside from the functional element of the venue, security of the participants to the MICE activities should be assured. Venues should have a comprehensive security measures that will prevent any untoward incident that will happen to participants.

At present, Myanmar is expensive compared to its neighbors. Most of the MICE facilities are in Nay Pyi Taw, far from the popular tourist spots that participants can visit as a side trip.

Accessibility

Looking at the ASEAN member-countries as the primary MICE client, Myanmar has to improve accessibility with the neighboring countries. The e-visa was a good move and will facilitate fast processing of docu- ments for foreign participants coming to the country. More flights connecting key cities with the main MICE areas like Yangon and Mandalay is also important. Other gateways should be opened to areas potential as MICE sites. The quality roads and transport facilities between the venue and tourist areas have to be improved.

Places of interest within the venue

Within the venue, there should also be activities that will make the life of the participants interesting. A variety of activities is necessary to relieve the tension and the stress related with the conference or the event. The more “distracting” the activities, the better for the participants who will look for alternative activities.

Hub of tourist places of interest

After the events, there are participants who would like to explore the area and places of interest that are distinct. This element makes Yangon and Mandalay as the best place for MICE. Nay Pyi taw may have the most number of hotels that can host MICE activities, but it is too far to most popular tourist spots that participants can visit. Developing MICE areas other than the key cities of Yangon, Mandalay and Nay Pyi Taw is a must if the tourism sector is serious in its effort at capturing MICE clients. For a start, areas in the Mon state like Mawlamyine, Taungyi in the Shan state, or even Ngapali in Rakhine state can be considered.

Marketing

Selling Myanmar as a MICE destination requires an integrated campaign with full government support. The marketing approach has to be prepared involving all stakeholders to generate maximum support focusing on the actors in this specific market segment.

Office Market 4 Q 2014

By
Aye Chan
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Research & Forecast Report Yangon Supply pipeline increases amid growth in demand

New office supply targeted for completion in 4Q 2014 slides as developers struggle to meet their deadlines. As a result, the additional stock in 2014 is slightly lower than 2013’s 31,000 sq m. Nevertheless, Yangon’s total office stock continued to expand, ending at 107,000 sq m of net useable space. Looking forward, the supply pipeline will remain robust with better-quality offices to come online within a span of four years. Colliers predicts the office market will yield an annual average increase of 70,000 sq m from 2015 to 2018.

Meanwhile, the occupancy rate continued to improve in 4Q 2014, albeit at a modest rate of 0.44% QoQ. On an annual basis, the demand was high, registering a 9% increase in net take-up from 2013’s 26,000 sq m. In 2015, the average occupancy rate is projected to temporarily decline following the completion of new sizeable projects. However, the rate is set towards an upward trajectory in the medium to long term once key investment sectors are liberalised further.

Project completion continues to slide as supply pipeline expands

“New projects were deferred as developers failed to meet their target completion date. As with the end of 2014, the total office supply in Yangon ended at 107,000 sq m of net useable space. The additional stock for the year reached 28,366 sq m, but this figure is much lower than the previous forecast of 60,000 sq m and is slightly lower than 2013’s new supply of 31,000 sq m. Out of the six new office developments set to be introduced in 4Q 2014, only Parkside One was launched as scheduled. This newly opened office building in Sanchaung Township offers some 5,500 sq m of leasable space – a development by Green Vision.

Meanwhile, the construction pipeline is building up amid prospects of increasing demand. In 2015, new supply is estimated to reach over 60,000 sq m, more than twice that of 2014. This translates to 12 new dedicated office buildings broadly distributed citywide. For instance, Union Financial Centre (Shwe Taung Development Co., Ltd.) and Strand Square (Flying Tiger) are set to open in Downtown; Vantage Tower and The Office @ Novotel Yangon Max (Max Myanmar) are expected to be launched in the next six months in Kamaryut Township, Inner City zone; and Uniteam Office Tower (Uni-team Marine) and Eastern Business Centre will reinforce the growing supply stock in the Outer City zone.

While the majority of new developments for 2015 are expected to be of improved quality, the sizes are relatively small, being under the 10,000 sq m range. However, sizeable projects are now under construction, with completion dates targeted in the medium to long term. These are Sule Square (Shan- gri-La Group), Kantharyar Office Tower (Asia Myanmar Shining Star), Time City Office Tower (Crown Advanced Construction Co., Ltd.), Pyay Office Tower (Noble Twin Dragon Pte Ltd.), Junction City Office Tower (Shwe Taung Development Co., Ltd., & Keppel Land), Golden City Office Tower (Golden Land Real Estate Development Co., Ltd. and Nature Link Co., Ltd.), HAGL Myanmar Centre Office Tower Phase 1 (Hoang Anh Gia Lai Myanmar Co. Ltd.), Crystal Tower (Shwe Taung Development Co., Ltd.) and Dagon City Office Bldgs. (Marga Global Investment Ltd.).

Colliers predicts that the office market will yield an annual average size of 70,000 sq m from 2015 to 2018, totalling some 25 new upcoming office buildings. The annual projections may vary as we look forward, with new mid-sized projects expected to launch in the near future. Meanwhile, sluggish construction activity was observed in some developments.

Classifying a premium grade office building

While many better-quality office options are now underway, there remains an absence of proper international Grade A buildings in Yangon. Although some upcoming office projects are perceived as premium in quality, a number fall short of internationally accepted specifications. Based on regional grading guidelines, Colliers has predetermined some key considerations in defining premium office buildings in Yangon. The quality of the development shall be examined for various technical aspects, such as the project’s location, the buildings size, the cost of the development, the floor plate and layout efficiency, the type of ownership, the general finishes (both interior and exterior), the rental and capital value levels, the building’s total efficiency, the floor-to-ceiling clearance, the property management, the type of equipment and the availability and quality of its facilities (fire system, building intelligence, backup power and redundancy system, airconditioner, elevator, and telecommunication) to name but a few.

At present, there is barely 38,000 sq m of toptier office space in Yangon. Besides the existing Sakura, Union Business Centre and Centerpoint, 14 new better-grade developments are now in the pipeline, representing over 300,000 sq m of new toptier supply. However, out of the total, only 30% has been preidentified as premium grade. This number will change once final development executions are fully examined.

Occupancy rates to be buoyant despite sizeable new supply

The citywide average occupancy rate slightly improved in 4Q 2014 to 88.9%, a rise of 0.4% QoQ. On an annual basis, the rate is up by 4.8%, translating to an occupied stock of over 95,000 sq m in 2014. The improvements in the occupancy were mainly driven by Downtown, whereas the Inner City zone witnessed a stable rate over the past two quarters. Demand in the Outer City zone remained the highest, being almost fully occupied for the whole of 2014.

The occupancy rate may head into a temporary decline towards the middle of 2015 amid the introduction of considerable new supply. However, the entry of foreign banks and securities companies will help buoy the take-up rate, which brings our baseline forecast to 89% over the next 12 months. However, the strengthening presence of international companies coupled with the continuous domestic expansion plans exert upward pressure to the overall take-up rate, potentially driving occupancy to over 90% by the end of 2015.

In the long run, demand drivers look to remain healthy. The administrative and management office requirements are set on an upward trajectory concurrent with the country’s road to industrialisation. The ASEAN integration will strengthen the in- flow of investments, eventually fuelling businesses and increasing office demand.

Moreover, the economy is currently witnessing an early stage of expansion, which will drive further growth in various investment sectors. However, the remaining barriers to entry for key industries such as banking and insurance will restrain demand until further liberalisation measures take place.

Average rent to increase at a rather modest pace

Note: Yangon’s historical office rental rates were revised and rebased as a result of a revamp in the sampling size conducted in 4Q 2014.

The citywide average office rental rate ended at USD 69.17 per sq m monthly in 4Q 2014, a slight increase from 3Q 2014’s USD 68.75. This translates to roughly USD13,750 per sq m monthly for a 200 sq m office unit.

The increase in rent was mainly recorded in the Inner City zone, which grew by 2% QoQ. Both average rents in Downtown and the Outer City zones remained stable over the past two quarters. Meanwhile, compared to the same period in 2013, the citywide average rental rate was up by 6%. The highest annual rental growth was seen in the Inner City zone at 23% YoY, followed by the Outer City zone at 9% YoY. In Downtown, the average rent has been stable since 4Q 2013 at USD82 per sq m monthly. The forecast direction for the citywide average rent remains upward in 2015, albeit at a more modest rate than witnessed in the past two years. We can assert the lack of international standard office buildings this year will keep premium rental rates relatively stable.

Myanmar’s Beans and Pulses

By
Aye Chan
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Myanmar is in the limelight to- day, as a favorite tourist destination with its pristine beauty, glittering pagodas, strong Buddhist influence and rich heritage of a populace different from the rest of the world. It is also a haven of natural resources, from the world’s best Mogok rubies, numerous precious and semiprecious stones, to oil and gas, and a wide range of agricultural products. Agri- culture is the mainstay of the country with 70% of its population dependent on it for survival, and during the early 1960s it was also the world’s largest producer of rice, a position it is trying to regain through planned initiatives. Not so well known is the fact that Myanmar is a leading producer of eans and pulses, and exports these to 52 countries. It retains its position as one of the world’s top five producers of bean and pulses, which include Canada, India, Aus- tralia and Tanzania. Agricultural exports are important for Myanmar’s economy and can prove to be one of the high growth areas due to the country’s locational advantage,favorable climatic conditions and fertile soil.

Beans and Pulses – The Nutritious Staple

Beans are the most significant legume for human consumption since they rank as the second richest source of protein in our diet. Pulses include all the edible seeds that grow in pods, and include all types of peas, beans and lentils. Cheap and affordable, besides protein, they are also a rich source of dietary fiber, minerals and vitamins. They are also low in fat and are great sources of energy, helping the human body get rid of dietary deficiencies. Their protein content is as high as 24%. They are the perfect complement to staples such as wheat and rice to complete a nutritious, wholesome meal.

Over 13,000 species of pulses are found worldwide. There are numerous varieties of beans and pulses sold in their raw whole form, split and de-husked form, or spilt with husk intact, and the number increases with variation in color. Besides all the bean vari- eties, these also include various pea variet- ies like chick pea, black eyed pea, green split pea, pigeon pea and yellow peas.

However, pulses and beans do not enjoy the same importance as rice, which is a more significant staple and forms a more crucial part of people’s diet. Rice is also consumed in nearly every country in the world though the same cannot be said for beans and pulses. They are a significant export crop for Myanmar since it enjoys a comparative cost advantage.

Estimates reveal that globally, approximately 20 million tons of beans and pulses with a market value of USD 10 billion are produced annually, of which around 35% are traded across borders to countries where these are consumed regularly.

The cultivation of beans and pulses in Myanmar

The production of beans and pulses can be traced back to the British Rule, when the first seeds were brought from India, along with growers, to be cultivated on the rich Burmese soil. A ready Indian market ensured a significant proportion of the produce being exported to India, and this trend continues even today. The growth of this segment of agricultural products has been coincidental without any conscious planning to expand it. The big push for the beans and pulses cultivation was driven by the private sector and their emergence as a cash crop with huge export potential came only after 1988 with incentives given by the government to farmers.

One of the principal factors responsible for the increased production of beans and pulses is the need to use land instead of keeping it idle after the monsoon paddy. Beans can be planted at the beginning of the win- ter season and can thrive on the leftover moisture of the monsoons, not requiring additional artificial irrigation facilities in the absence of rain. This makes their cultivation undemanding and cost effective with no additional allocation of resources required. Their shorter growing period of just 3-4 months from plantation to harvest is another plus. The higher margins at which they were then sold became an added advantage and became an impetus for farmers to allo- cate their farm land to beans over paddy. A ready market with a steady demand coming from neighboring India pushed the beans and pulses production further.

The land acreage under beans and pulses has been constantly increasing with seventeen different varieties being cultivated. The most significant among these are black matpe, green mung bean, chick pea, pigeon pea, cow pea, red kidney bean, velvet bean, and soy bean. Of these, black matpe (black gram), green mung bean (green gram) and pigeon pea, are the most important, accounting for over 80% of the total export value. This explains why the land area in which they are cultivated increased four times in a single decade at the turn of the century. Gradually, the cultivated area for green gram, that had previously been confined to the Lower Myanmar areas of Ayeyarwaddy and Bago, began to extend to the Upper Myanmar regions of Sagaing and Magwe, and these have now overtaken the production levels of the lower region. Pigeon pea is extensively cultivated in Upper Myanmar especially, Sagaing, Magwe and Mandalay. The Market for Myanmar’s Beans and Pulses

Myanmar’s beans and pulses have acquired a good reputation internationally and they have a ready market in countries like India, UAE, Thailand, Bangladesh and Japan, and 49 other countries. The three quality grades of beans include First Quality (FQ), Special Quality (SQ) and Fair Average Quality (FAQ), with the bigger markets for FQ being Korea, Japan and China, and India importing substantial quantities of each grade.

In February 2015, Myanmar exported 90,591 MT of beans and pulses to various countries, which revealed a 19% over the export quantity a year ago. India accounted for 81% of this total export partly because of the ease of procurement, short delivery time and close similarity in the quality and taste of beans and pulses purchased from Myanmar. India happens to be the world’s largest producer, consumer and importer of beans and pulses, unable to fulfill its domestic demand with its growing population and lentils being part of the daily diet. This trend is likely to continue since estimates indicate that by the year 2030, India’s population is likely to touch 1.68 billion and approximately 32 million tons of beans and pulses will be needed to feed this large number of people.

For the present, 1.1 million tons of beans and pulses are exported annually to India, of which 600,000 MT are black matpe (black gram), 300,000 MT of green gram, 200,000 MT of pigeon pea, and another 200,000 MT of other lentils.

India is also the world’s largest processor of beans and pulses, a facility which is not available in the same scale in the biggest producing countries including Myanmar, Canada and Australia. Processing involves sorting, cleaning, dehusking and splitting the beans. Some lentils are polished as well, though the unpolished varieties are healthier to eat. These then are sold as split lentils which are quicker to cook. Nearly a dozen varieties of processed split and dehusked lentils are sold in India.

It is interesting to find that one of the key determinants of beans’ purchase is not price. Some of the more expensive bean varieties are also the highest in demand. This can be attributed to the taste, bean size, color and shelf life without getting infested. The way forward

As the world population increases and, more and more people turn towards vegetarianism, the demand for beans and pulses is bound to increase, and if bottlenecks in the field of agriculture can be overcome, the country can easily meet this increased demand. As Myanmar moves towards the next stage of development, mechanized processes, educating farmers about better farming techniques, better storage facilities, access to better quality seeds, micro financing and improved network of roads to facilitate transportation of produce, are some of the gaps that can be filled by the government with perhaps, participation from private companies or buying countries. Experts in the field would like to see the growth of value added products emerging in the beans and pulses business, setting up of more processing centers and selling processed rather than raw goods. Value addition ensures higher profitability and more employment opportunities for the locals. With foreign participation and technical know-how being made available, the process of surging ahead has already begun.

Setting Standards in the F&B Sector An Interview with General Manager Arjuna G Yoganandan The Pizza Company and Swensen’s Myanmar

By
Aye Chan
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Name : Arjuna G Yoganandan

Nationality : British

Position : General Manager

The Pizza Company and Swensen’s Myanmar Express Food Group (EFG) Myanmar From starting off as a kitchen staff at a chain restaurant, Mr. Arjuna G Yoganandan has made to the General Manager of The Pizza Company and Swensen’s Myanmar after holding management positions through his international journey. Through this interview, Mr. Yoganandan shares our readers with the story behind the existence of The Pizza Company and Sw- ensen’s in Myanmar, its future expansion in the country as well as interesting opinions and remarks on Myanmar and its Food and Beverages (F&B) industry.

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MI : When did you first visit to Myanmar and what was your first impression then?

My first visit to Myanmar was in 2014 December. If I was to remove the malls that are being built around the city, it reminded me of Ceylon (Sri Lanka), the place where I was born. With its majestic pagodas, rich culture and warm people, it’s like coming home.

MI : How did you end up as your current position?

I started off in this business on the best possible position you can be in if you want to learn the ropes of this industry – a kitchen staff at Pizza Hut – Earls Court branch in 1983. From there I worked myself through the system into Management and moved overseas in 1993 to Saudi Arabia as Regional Manager which started my international journey. Many countries and years after, with an extensive knowledge and experience in tow, I was approached by MINOR International, the Franchiser of The Pizza Company and Swensen’s and EFG Myanmar, for this job.

MI : In which ways working in Myanmar different from working in other countries?

Every possible way, as there is no other country except North Korea that has been shut off to the international community for such a long period of time. It is a big challenge for us, yet a unique opportunity to conceive new best practices in the industry that we hope, other incoming international brands follow, which in the long run, will benefit the country and its people.

MI : How did Express Food Group (EFG) Myanmar end up franchising The Pizza Company and Swensen’s in Myanmar?

EFG also owns the Franchise rights of The Pizza Company and Swensen’s to Cambodia and Laos. We have a good relationship with the Parent Company MINOR International, hence when they were looking for a Franchi-

see for this territory, it was a good business decision that was taken by both parties concerned to award it to EFG Myanmar.

MI : How many branches of The Pizza Company and Swensen’s are expected to be opened in the whole country?

We hope to open a total of 50 – 30 branches of The Pizza Company and 20 branches of Swensen’s in Myanmar by the year 2019.

MI : How are you and your team try- ing to meet customers’ expectation here in Myanmar?

(We do that) by following every SOO on Quality, Service and Cleanliness set by our Parent Company MINOR Int. Staff are trained at every aspect of BOH and FOH to ensure full compliance of these standards to meet our customers’ expectations. That said, the rigid standards that we adhere to and implement in Myanmar, are already a benchmark in the food industry worldwide, and we want to elevate the country’s bar to those standards by having them experienced how it is done.

MI : Who do you think are your competitors and how are you planning to compete against them?

Our main competitor would be Pizza Hut when they come. We have an advantage of being here first and to choose the RIGHT sites that are crucial to compete in a new market. Added to this, we have an advantage of building a loyalty base of guests and also being ahead of the game in becoming a preferred employer to the people of Myanmar.

MI : Please tell us more about the quality control system applied in The Pizza Company and Swensen’s Myanmar.

As mentioned earlier, MINOR International has mandatory quality control systems in place that has to be adhered to at all times. For example: Food Quality. Since this market is very new for us until we can source local products that meet the quality standards required, we ship in most of the products from MINOR International from Thailand.

MI : From a business standpoint, what do you feel are the biggest challenges facing you and your team in Myanmar in next 1-3 years?

Human Resources. Acquiring and retaining a skilled workforce due to the incursion of international companies in the country. Even though we provide competitive compensation and benefits package and also support employee’s personal and professional development through various trainings and coaching, at the end of the day, it will always be at the employee’s discretion whether to stay or job hop to the next international company.

MI : Does EFG have any plans to franchise other international F&B brands into Myanmar?

Yes we do and we are in negotiations with other brands that we would like to bring into Myanmar. This is however confidential information.

MI : What is your opinion on country’s current F&B sector?

There are many opportunities to improve on Quality Service and Cleanliness. Service and Cleanliness standards in general are very poor in many eateries/ hotels etc. It is an accepted norm, however with the influx of international brands and hotels coming, this will change to keep up to the expectations of the people of Myanmar and tourists that will visit your country.

MI : What are the critical success factors for a franchising business in Myanmar?

Choose local partners that are strong, choose your brands carefully and choose your opening team locally. These choices will be the foundation of your business to make it a strong one.

MI : If you could make a change to one major government policy in order to ease the way of doing business here, what would it be?

Processing of business visas. Like every body else in Myanmar, we, as expats value our productive time, and having to go in and out of the country every 70 days for renewals becomes an unproductive burden. Hopefully we can have a system in place which can allow us to do this in the country soon.

MI : How are you enjoying your days in Myanmar?

I have found some excellent restaurants with great food and bars that are quiet. When I do find the time, I go to these places to relax and unwind. I also enjoy going to the Shwedagon Pagoda to pray as it gives me an inner sense of peace.

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Tapping the White Gold Rubber

By
Aye Chan
-

Myanmar rubber exports are set to soar, and could even double within three years, say some industry experts. Plans to diversify the rubber market and improve the quality and added value of the product are being studied.

About 70 percent of Myanmar’s rubber exports go to China, Malaysia, Korea and Singapore, leaving only 8% for local use. The Asia Pacific has been the largest rubber consuming region since 1986 due to its economic and population growth. According to the Thai Rubber Association, the Asia-Pacific currently accounts for 57 percent of global rubber demand and will remain the world’s strongest growth market for rubber.

“Western countries are also increasingly interested in buying Burmese rubber” says an official of the Myanmar Rubber Planters and Producers Association (MRPPA). Germany, Austria, Denmark and New Zealand have shown keen interest. The International Rubber Study Group predicts by 2020 global demand for natural rubber will outpace supply by as much 1.4 million metric tons.

Today, rubber industry is the second largest industry in the world after iron and steel. It is one of the most important raw materials that are important for transportation, industry, defense and medical fields. Natural rubber (NR) and the different types of synthetic rubbers are used in many different end-products. The former is made from the latex derived ‘naturally’ from the rubber tree, while the latter is synthesized from chemicals sourced from petroleum refining. The main use of natural rubber is in automobiles. The other category, general rubber goods, includes hoses, belting, footwear, surgical goods, and rubberized cloth. In developed countries nearly sixty per cent of all rubber consumed is for automobile tyres and tubes. In heavy duty tyres, the major portion of the rubber used is natural rubber. In addition to tyres a modern automobile has more than 300 components made out of rubber. Many of these are processed from NR. Uses of NR in hoses, footwear, battery boxes, foam mattresses, balloons, toys etc., are well known. In addition to this, NR now finds extensive  use in soil stabilization, mining, in vibration absorption and in road making.

Burma is currently ranked seventh in rubber production in Southeast Asia, behind Thailand, Laos, Cambodia, Indonesia, Bangladesh and the Philippines Throughout the country some 1,430,000 acres are devoted to rubber only, according to a report by the Ministry of Agriculture. Myanmar’s rubber production went up by over 40,000 tons, reaching over 100,000 tons in the fiscal year 2011-12 from over 60,000 tons in 2005-06. It is during this period that both Chinese subsidies for rubber production became available in northern Myanmar as well as the central Myanmar government increased the allotment of private rubber concessions to Myanmar companies. These two government backed programmers for rubber development in Myanmar have targeted different geographies with an overall significant increase in rubber development.

Around 85 percent of rubber globally is, in fact, produced by smallholders, with farmers typically owning plots of land ranging anywhere between 5 and 100 acres. Rubber grows well in Tanintharyi region, Kachin, Kayin and Shan states where planting of rubber is being transformed from a small scale to a commercial scale. Rubber is also produced in Rangoon and Pegu divisions. The beauty of rubber is that farmers can plant it with other cash crops such as banana, tea, coffee, cocoa, cassava and pineapple. Not only does this reduce competition for land, it also provides an alternative income for farmers, and the diversity of crops provides a source of food for families. Rubber tapping commences from the sixth year onwards. Rubber tapping is the process by which the latex is collected from a rubber tree. The yield continues for 25 years after which the replantation is done in the 32nd year. The trees cut after 32 years of cultivation fetch good prices as the same is sold as rubber wood and is very popular for manufacturing household furniture

According to MRPPA, in terms of rubber cultivation, Myanmar ranks ninth in the world and two thirds of the total rubber cultivated is in Mon State. About 70 per cent of rubber production in the country is targeted for export. Ninety per cent of the rubber is exported to China and five ASEAN countries -Malaysia, Singapore, Vietnam, Thailand and Indonesia. While China is the main rubber importer from Myanmar, and Chinese middle men seem to operate local rubber economies in northern, eastern and southern Myanmar, the recent investment interest in rubber production and processing by Malaysia and Thailand indicate that there will be increasing demand and therefore competition on Myanmar’s rubber exports. Rubber from Myanmar is also exported to Korea and India.

But Myanmar is far from posing a threat to the world’s top rubber producer, Thailand. The rubber sector has been growing rapidly since 2005, but still needs to improve the quality of its product and to develop export strategies, said U Khaing Myint, secretary general of the Myanmar Rubber Planters’ and Producers’ Association. The best quality rubber in Burma current sells for $3,000 per ton, around $350 less than the best quality rubber in neighboring Thailand. “Thailand is more diversified in terms of both products and market,” said Paul Baker, chief executive of International Economics. “Myanmar rubber had huge potential, but its product was too low grade and needed diversification” he added.

Because of its quality, the price of Myanmar rubber is far lower than the world rubber price, and despite the lifting of sanctions, Myanmar can export only 20 tons of rubber to Europe, said U Khaing Myint.

“We’re looking at how we can upgrade and add value to the product. The world price is US$2500 per ton but we get less than $2200. We export RSS1 (Ribbed Smoked Sheet), RSS3, RSS5, MSR20 and MSR50 grades of rubber, mostly RSS3 and MSR20 (Myanmar Standard Rubber),” said Myint.

Driven by global demand and mainly by the automobile (tyre) industry, natural rubber is a valuable commodity and plantations and processing facilities are continuously striving to increase yield, enhance productivity and improve quality to meet compliance and global standards.

With demand far outstripping supply and prices on the upswing consistently over the last 25 years it makes eminent sense to promote the cultivation of this plant species both as an investment as well as making the country selfsufficient in this very important raw material.





Vegetarianism is Healthy Fact, Fad or Fallacy

By
Aye Chan
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Our bodies are only as good as the food we eat – a cliché that rings true in an age and time when life threatening diseases strike seemingly healthy people, partly because, they have not been eating healthy. Food that tingles the taste buds, with its taste and flavor is one of the pleasures of life that the best of us succumb to – for only what is pleasantly palatable, will be gladly taken in.

Research costing millions of dollars has created a strong awareness about what foods are healthy, and all the processed foods we savor, are not good at all for our health. Little wonder then, that the list of foods being termed ‘junk foods’ is growing longer, and the ranks of people avoiding all kinds of meat is growing globally. A significant part of this list includes non-vegetarian foods, which are delectable, addictive and damaging.

Non- vegetarian food includes all eating red meat, fish, poultry, and other products derived from animals. This division is a bit hazy, since milk, derived from animals, is considered vegetarian, and forms a significant part of all hard core vegetarian diets.

Over the last two decades, vegetarianism has caught on, and is widely perceived as ‘healthy’, which actually means that it is healthier than a non-vegetarian diet. Vegetarianism refers to a lifestyle, the most significant part of which is following a vegetarian diet that includes plant produce and abstinence of flesh and foods that have an animal source.

Types of vegetarian diets

A diet that includes all plant produce, milk and soy products is loosely classified as a vegetarian diet. Personal preferences, religious beliefs, aversions and convictions have led to the emergence of specific vegetarian diets which include:

  • The vegan diet – The most restrictive form of a vegetarian diet includes avoiding all meats and animal products including milk in all forms and eggs. Many vegans do not have honey also. Their diet includes only fruits and vegetables and soy products.
  • Lacto-vegetarians – A large section of vegetarians fall in this category, whose diet includes vegetables, fruits, beans and nuts as well as dairy products. They abstain from having meat, poultry, fish and eggs.
  • Lacto-ovo-vegetarians – This category of vegetarians excludes meat, poultry, fish but have eggs and dairy products besides vegetarian foods.
  • Pesco-vegetarians – these people avoid meats and poultry, but eat fish, eggs, dairy products and vegetables etc.
  • Semi-vegetarian/flexitarian diet – this is the most flexible diet since it permits certain types of meats, once or twice a week, supplemented by all vegetarian foods. This makes the diet less limiting and healthier since it provides the benefits of both.
  • People following each of the above mentioned diets strongly believe in the benefits of the diet they follow. For them it is a lifestyle reinforced by strong beliefs in avoiding cruelty to other living beings who have as much a right to live as human beings-the motto being, live, and let live. Most vegetarians in the US and Canada have been motivated by a desire for self improvement, to lead a longer, healthier life.

Vegetarian food facts

Vegetarianism is viewed mainly in a positive light around the world, and in many countries gets legal and cultural support due to its link to religious beliefs and practices, in countries like India and the UK. The dictates of religion in India, had kept a larger proportion of the country’s population, vegetarian, for centuries. In such countries, being vegetarian is not limiting in any way since ample non meat food options are available due to greater demand for the same.

Most non-vegetarians wrinkle their nose at the prospect of having a vegetarian meal. Beans and leaves are the least appetizing for them and equivalent to not eating at all. Perhaps they do not realize the health and overall benefits of a plant rich diet, and the ill effects of consuming high-fat animal protein and meats.

Is vegetarianism just a fad?

Vegetarianism has been practiced for far too long to be just a fad, though it cannot be denied that it is becoming increasingly fash- ionable to be a vegetarian. From the earliest time in history, there have been advocates of vegetarianism who used religious, moral and spiritual arguments to woo the meat eating crowd in an attempt to convert them to a diet including the produce of the earth than live beings walking, swimming or flying. The 19th century, and scientific research started popularizing vegetarian diet as being more healthy but till late in the 20th century, vegetarians were a small sect, surviving on the fringe of society and not part of the main stream, except in countries like India, where religion dictated lifestyles and eating habits.

 

Like so many new ‘diets’ being touted as the best for weight loss, heart health, fitness etc, vegetarianism has also been tried initially as perhaps a fad, but the feeling of well being it brings, has converted non vegetarians into vegetarians.

It is in keeping with ‘being cool’ and ‘going green’, but with no harm done, it may be the best route to good health. It may be a fad, but will last out longer than any other, and one that is going to spread across borders, even in places where vegetarian options are limited.

The vegetarianism fallacy

Meat lovers and hard core non-vegetarians have long criticized vegetarianism on various counts. And this is not entirely without reason. Since any food devoid of meat qualifies as vegetarian, a section of people feel eating a bowl of French fries, onion rings, fried dumplings, fritters and other oil-rich foods are healthy too. Just keeping meat out a nutrient-empty diet does not make it healthy. It has to have the requisite nutrients like fiber, protein, vitamins and minerals to qualify as healthy.

It is not entirely true that all vegetarians have lower cholesterol. Vegetarians thriving on heavy fried foods, potatoes and fat rich sweets and savories, are bound to have obesity problems along with cholesterol, hypertension, diabetes and coronary heart disease. India, with a vast vegetarian population, is a typical example.

Vegetarianism has been defined as lifestyle that involves balance, moderation and a conscious effort to balance daily nutrition with the produce of the earth.

Where vegetarianism falls short

There have been concerns about vegetarian diets providing the entire basket of nutrients needed by the human body. The question is about optimal calcium levels which come from milk, and therefore vegans would lose out unless they take calcium supplements.

Meats are a rich source of protein which vegetarians can get from beans, lentils and nuts. Minerals like iron are found in green leafy vegetables like spinach and broccoli, prunes and nuts. The deficiency of Vitamin B-12 needs to be addressed with supple- ments by vegans though other vegetarians get this vitamin from milk and eggs.

A good vegetarian diet

A balanced nutritive vegetarian diet should include, whole grains and cereal, beans and lentils, fruits and nuts, rice, wheat and vegetables. Ovo-vegetarians would have the nu- tritional benefits of eggs, and lacto-ovo-veg- etarians gain from the wholesome goodness of milk and milk products like yoghurt, cheese etc. Vegans can substitute milk with soy milk and other soy products and get wholesome, balanced nutrition.

Vegetarianism in Myanmar

It is not difficult being a vegetarian in Myan- mar with its rich variety of agricultural produce, including fresh fruits and vegetables, numerous varieties of beans and pulses, soy and dairy products. In fact, most salads and soups in Myanmar cuisine can be adapted to a vegetarian palette and supplemented with stir fries that are completely vegetarian if fish sauce and shrimp paste are avoided. The distinct Indian influence in the country ensures plenty of potato based snacks and curries. Every restaurant has vegetarian options, called “the-taa-lo”. Shan noodles, tofu curry, vegetable fried rice, dosa, vegetable biryani and vegetable hotpot are some of the safe meal options that are easy to find.

The case for vegetarianism grows stronger with every passing day. Science and the environment all favor this diet path. For those looking for role models find philosophers like Plato and Nietzche, political leaders like Mahatma Gandhi and Benjamin Franklin, and pop icons like Paul McCartney and Bob Marley, propagating the diets they followed throughout their lives. Turning vegetarian may become a turning point in your lives too.

Exploring Myeik Archipelago

By
Aye Chan
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Nowadays, Myeik Archipelago’s popularity is growing among tourists. Its virgin beaches and unspoiled environment are attracting the tourists. Myeik Archipelago, home to Sea

Gypsies, is also rich in natural resources including precious Myanmar’s Pearl.

Location

Myeik Archipelago is located in Adaman Sea, the Southern part of Myanmar. It has over 800 islands differing in size and stretches an area of 10,000 square miles. Many wild animals, birds, aquatic species and colorful coral reef are also existed.

 Beautiful sights in Myeik Archipelago

Kho Yin Khwa Kyunn (Macleod Island) is good for bird watching. Bo Ywe Island is famous for its magnificent waterfall, which is existed in western shore. Nga Mann is popular for both coral reefs and fascinating dive site. There have many famous dive sites in Myeik Archipelago. Western Rocky Island is also known as Limestone Island. This island can offer fascinating underwater view and have small caverns and a huge archway. The Burma Bank which possesses good shape coral is another famous dive site. Fan forest Pinnacle is well known for black Coral and large barrel sponges. Near Black Rock Island, there have some species of sharks. Shark Cave Island, North Twin Island, North Twin Plateaus are also fa- mous dive sites.

Things we can do in Myeik Archipelago

Like any other beaches, you can swim and dive but the difference is you can swim in crystal clear water. You can snorkel and watch under water beauty of variety of fishes swimming reef to reef. Walking on white and sandy beaches is also the best feeling and collects the shells that are still alive. You can feel the beaches in Archipelago are almost alive. If you are interested in wild- life and birds, Myeik Archipelago is also suit for you because most of the islands are covered with rainforest where you can watch tropical birds including hornbills and wild swine and barking deer, flying Lima, flying foxes and leatherback turtles. Many people think sharks are dangerous animals but people who want to scuba dive do not need to worry about sharks here be- cause sharks there are not dangerous. They are a bit shy and stay away from people. Three kinds of shark species you can watch in Myeik Archipelago are Whitetip, Tawny nurse and Silvertip sharks. In addition to many normal things that can be done in other beaches and islands, you can taste salon traditional cruises and study their extraordinary living styles that are very different. According to surveys on the Internet many tourists who have been to Myeik Archipelago want to experience these cruises and they actually enjoyed them. If you want to relax without irruption and peace, the place you should choose is Myeik Archipelago. Many of islands in this archipelago are secluded.

Accommodation

Many people are worried about accommod ation when they are planning for a trip. In Myeik Archipelago, Andaman resort offers accommodation for visitors. The cost for per person is US$275 per night which is quite expensive by international standard

Transportation

The tourists from Thailand can visit to Myeik Archipelago through Ranoung, Myanmar-Thailand border. There are daily flight except Saturday from Yangon to Myeik with different airlines and there are also weekday flights from Yangon to Kawthaung. Live aboard trips to Myeik Archipelago are also very popular among tourists. From Kawthaung, you travel around Myeik Archipela- go with boats. Liveaboard trip have different kinds of packages such as 3 days 2 nights, 5 days 4 nights, etc. The price for 3 days 2 nights is US$984 per person.

Tourists are also required to pay US$80- 100 as zone fee. The best times to visit Myeik Archipelago are between October to April.

Are you new here?

By
Aye Chan
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Whether you are an expatriate who has just moved into Myanmar or just here for a short visit, you might have already discovered on the internet what the other experienced people say about this country or probably gathered as much information as you can from books and travel websites. You might have heard of Ngapali, Inle and Mandalay, you might even have been to Shwedagon Pagoda and Bagan and they might have told you about how you can get to all these tourist attractions, probably have recommended some places to stay and informed you some tips of dos and don’ts during your stay here. But when you are here for more than a two-week vacation, you will have more questions that those travel guides and blogs haven’t provided the answers yet. You might start to won- der things like how you can manage to have internet access at your home or office to where you should take your family coming weekend, how to choose a dentist or a tailor and eventually where you should go to get a haircut. Here is the Yangon Golden Guide which recently launched its 2015 Edition will answer you above ques- tions and take you across the city where most of the recently arrived expats tried to adapt their new lives in Myanmar. Even if you consider your stay here has been long enough for a guidebook, you will still enjoy lighthearted yet fascinating facts and you may even agree with some of them.

There are a total of 12 sections and you can look up basic information on the coun- try, accommodation, education, health care, dining, shopping, recreation and tips for trips. It seems like a mini-directory with addresses and useful phone numbers but more likely a diary friend of yours trying to guide you through your initial days in the city. It tells you some expressions, social etiquette, festivals and even num- bers and units in Myanmar language under the General Information section. If you are an expatriate just arrived here and completely new to the atmosphere, you may need to read the second section: Getting Settled thoroughly so that you can have an overall idea about accommodation: whether you should choose a house or a ser- viced apartment, a list of real estate agents, about private transportation and driving license, visas, banking and hiring household help. This Golden Guide also provides with useful information about electrical and water supply, Internet service provid- ers, security, landline-telephone and Cable TV that an expat living in Yangon might need in finding household and maintenance services.

When you are in the process of settling here, one of the first things you have to ob- serve is healthcare. There are a number of medical centers, dental clinics and med- ical specialists included in the guidebook. There are many expats here who bring their family and move into the country together and if you are one of them, there is no doubt that there will be more things you need to add to the list of things I have  to take care of. If your have children in your family, you must not skip Education section and Things to do with Children section. There is also a whole section focused on services like mobile, camera and computer repairs, printing, mailing, newspapers and Insurance and Law firms in the book. What more is that you can keep this as your shopping guide (from buying jewelries to books and DVDs) as well as a dining guide.

This Golden Guide to Yangon is organized by the International Friendship Group – IFG which is a network helping women in Yangon to interact, socialize and fundraise. IFG rais- es funds through this Golden Guide and other evens to support local community projects especially for children and elderly. The Golden Guide to Yangon 2015 Edition is currently priced at US$10 and available at Monument Books, Monsoon Restaurant, Pomelo Yangon, Rangoon Tea House and Yangon Bakehouse respectively. IFG published the Golden Guide in 2004 for the first time and then continued its publication in 2006, 2008, 2010 and 2013. This 2015 Golden Guide to Yangon is its latest 6th edition.

 

2015 Jun cover

By
Aye Chan
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Mitv : Representing Myanmar’s Image Interview with Mitv’s Deputy CEO Zaw Thet Maung

By
Aye Chan
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Name : U Zaw Thet Maung Position : Deputy CEO

Myanmar International Television (Mitv)

MI: How did you end up as the Deputy CEO of Mitv?

Mitv is a jointventure channel, born from rebranding the former MRTV-3 in 2010 and run by the cooperation between the Government and Shwe Than Lwin Media. I started as the General Manager at that time. We started to form a team and invested 50% of our time in capacity building and 50% in the operation. It was quite fun and challenging during that time.

[paypal]

MI : Please tell us about your duties and responsibilities.

We’re operating this channel with team- work and my duty is to lead this team in creating the Mitv brand in representing our country image.

MI : What kind of progress has Mitv seen since its foundation in 2010?

Before, the transmission was done from Nay Pyi Taw – Tet Kone area and the censorship was stricter. Now we are broadcasting with self-censorship and self – regulation. And all the productions have become of HD quality. We always listen to our audiences and provide the programs based upon their demands and needs. I think capacity building is the most important progress since its foundation in 2010. Media industry is still very young in Myanmar and we have to train our people due to the shortage of qualified human resources in this field.

MI : What kind of difficulties did Mitv has to face with during this journey? How did your team overcome them?

We had to face many difficulties during this 5 year-journey especially when merging government employees and private sector ones. Due to different backgrounds and perceptions we have to understand both sides to create synergies between these two teams to become one. We have employed about 200 staff here half of them comes from government sector and the other half from the private.

MI : What are Mitv’s major programs for its target audience?

As I’ve mentioned before, we are representing Myanmar so we highlight our culture and traditions, lifestyle, tourist destinations, business, politics and economy. Our targets include businessmen, expats, repats and local audiences who value our country’s customs and traditions. Mainly we broadcast current news and documentaries for which Mitv has a theme “Real People, Real Story” and we cover stories about ordinary people in that the audience might have interests.

MI : How do you deal with the audience’s expectation being the only one English Language channel in the country at the moment?

We always value our audience and listen to their feedback. We have a traditional tele- vision channel which is a linear one that we’re broadcasting right now and also provide with new media platforms; Mitv’s official website, official page on social network, Android and iOS applications as well as live streaming. Thus we can communicate with our audience directly and try our best to serve what they need and want.

MI : What’s Mitv coverage like internationally and locally?

For average international coverage, Mitv is available in ASEAN nations and we have also been streaming on the internet all the time for about two years. Locally, we’re run- ning FTA (free-to-air) analog in Yangon, Nay Pyi Taw and Mandalay while FTA digital on MRTV, DVBBT2 as well as on Skynet and streaming.

MI : How do you recruit quality staff for Mitv?

Team players are always welcome here. Attitude and commitment are the most important for us and we can train them the rest once they join Mitv. We avoid people like worm and pet in our organization. Worm means those who do not perform well and also not get along with anyone. Pet are the ones who only look upward in the organization. That is the reason why we only need team players.

MI : What kind of commercial supports and infrastructure are needed to run a channel like Mitv?

Since we have started as a JV channel (Joint-Venture channel), we do not have any financial benefits till today. In future when Mitv becomes much more popular and available worldwide, we may have a way to provide our channel commercially.

MI : What are Mitv’s current projects and upcoming plans?

Mitv is currently expanding its programs and focusing on a theme called New Face of Myanmar. We’re also expanding our network coverage in 2015.

MI : What are your strategies to compete against the international broadcast brands entering into Myanmar?

I’m very proud to be a part of Mitv which is the only one channel in Myanmar broadcast in English and representing our country’s image. There are a number of global brands representing each nation for example; there’s CNA in Singapore, Arirang in Korea, DWTV in Germany and NHK World for Japan.

We’re using different strategies in order to compete with other international broadcast brands. Since we ourselves are Myanmar nationals, we understand deeply about our country and our people. We don’t acquire any foreign contents. Every single content of Mitv is one hundred percent production by our people and it’s our core competency. We have a strong and creative production team.

MI : What is your opinion on the country’s media sector?

Compare with the previous administrations, now we have freedom of expression and the broadcast law is being discussed in parlia- ment now. I hope we will have a greater future for the media sector.

MI : Which one do you think has much more influence in the country, print or electronic media? Why?

No doubt that electronic media has much more influence than print media because it can reach to millions of people at real time. That’s why every government focuses more on electronic media in their countries.

MI : What are the key success factors in running a TV station?

Clear vision and positioning are very important. It’s also essential to know who the target audiences are and the station must focus on its audience segment.

MI : From a business standpoint, what do you feel are the biggest challenges facing you and your team in Myanmar in next 1-3 years?

Every business sector in Myanmar is at the breakthrough level. Every investor is waiting for the 2015 General Election and the FDI and other SMEs are expected to grow faster after 2015. I can foresee that the availability of efficient human resource will be the biggest issue in Myanmar in next 3 years. On the bright side, our target audience will be wider as FDI grows and the number of expats in the country increases.

MI : What advice would you give to someone looking to start up a business and invest in Myanmar’s media?

I would like to suggest to have faith, belief and enthusiasm for media business and also not to give up when facing with obstacles and difficulties along the way.

MI : If you could make one major change to any government policy, what would it be?

Since I am a media person myself, I would like to focus on the media industry. I feel that people here are misusing the social network. For example, some people tend to criticize or share the photos of tragedies but they forget about sympathy and dignity for the victims and their family. There already have been regulations for television, radio and print but none for the new media plat- form like social network. So I would like to suggest a change to the policy that will suit with the current trends in media industry.[/paypal]

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