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The Price of Jade

By
Aye Chan
-

Burma has long been the world’s biggest producer of jade and high quality gemstones. The vast majority coming from the small mining town of Hpakant, in the northern region Kachin Mountains. Chinese dealers buy up much of the jade and locals smuggle it across the border due to the fact that foreigners are not allowed in the town.

Over the past decade Chinese consumer spending has increased considerably and jade prices have kept pace with this trend. However recent fears over a shortage of Burmese jade due to export restrictions are alarming the markets. Also the fear that bigger mining companies who have access to modern mining technology and machinery are expected to replace current labour-intensive forms of mining which could deplete the mines stocks much quicker than the old traditional methods.

The Chinese have always had a great passion for jade and although much of Burma’s raw jade goes into mainland China, a great deal of it eventually ends up in the Hong Kong jewellery stores. A big Hong Kong jade trader commented on an industry website recently that he is having difficulty in sourcing Burmese raw jade.

A report shows that just several years ago a piece of Burmese jade purchased at trade fairs in Guangdong, southern China, for around US$2,700 and then processed into jewellery would then sell for approximately ten times the price of the original raw stone. In Hong Kong and Macau demand is now falling due to the fact that mainland traders are struggling to acquire raw jade and having to charge higher prices.

At one time raw stones that were priced at US$1,600 are now being sold for at least US$2,400.

Myanmar’s Ministry of Commerce (MMOC) trade data provided shows that in 2011/2012 jade was the country’s second-biggest source of revenue and was valued at US$780 million. A 2013 report from Harvard University completely contradicts the MMOC report and puts the value of Burmese jade sales as high as $8 billion in 2011/2012. The huge difference in the figures of the two reports is undoubtedly due to the fact that most of the jade leaving the country into China is unregulated or not documented correctly. Jade mining companies that sell their products through legal channels are subject to high government taxes up to 30 percent of the sale value. Hence the vast amount of illegal smuggling that occurs.

Febuary

By
Aye Chan
-

Who’s not paying their taxes?

By
Aye Chan
-

In the United Kingdom, HM Revenue & Customs has beaten its “massively ambitious” target for total revenue collected as a result of its tax investigation work by £2bn in the 2012-13 tax year, hitting a new record, UHY Hacker Young reports. So great was the haul that some might be tempted to question the degree of enforcement effort being focused by HMRC on its tax investigation efforts, a tax partner at the accountancy group noted.

In a statement released in December 2013, UHY Hacker Young reported that a record £20.7bn in additional revenue was collected by HMRC through compliance work focused on tax avoidance and evasion in the 12 months to the end of March 2013. This, it noted, represented an 11% increase from the £18.6bn taken in the previous year.

The year’s target of £18.7bn was already £2bn higher than HMRC’s target for the previous year, the accountancy group pointed out.

The extra revenue extracted by HMRC’s tax investigators came both from small businesses and individuals, the UHY Hacker Young data shows: that from small businesses jumped 30% in the year to 31 March, to £565m, while the share clawed back from investigations into personal tax returns rose by 38% to £609m.

Target ‘smashed’

Roy Maugham, a tax partner at UHYHY, said that even though HMRC’s target for the amount of extra revenue it wanted to “claw back” through its compliance investigations in 2012-13 had been“massively ambitious”, it had “managed to smash through it”.

“This is good news for the Treasury, but you have to ask whether all the extra enforcement activity needed for HMRC to over-shoot its target is a good thing or not,” Maugham added.

“There is a risk that HMRC’s hardline tactics pressurise some into making payments that they might not even owe.

“Not all of the extra tax take is from clear-cut tax evasion – it is often from HMRC imposing its view of how the tax system works on SMEs and individual tax payers, through the use of an army of tax inspectors and lawyers.

“Businesses and taxpayers that can’t afford professional advice to deal with a HMRC investigation don’t stand a very good chance.

“Many feel they have no choice but to just pay up otherwise they risk being dragged into expensive litigation.”

The record HMRC compliance tax take also comes at a time when many businesses and individuals are still struggling with the effects of the recession, Maugham noted, and as budget cuts are putting a strain on HMRC’s resources.

The Revenue’s currently high rate of staff turnover is also reducing the ranks of experienced personnel which, Maugham noted, could increase the risk of mistakes in its tax calculations, while pressure on HMRC to maximise its tax might also be encouraging some staffers to pursue more contentious claims.

HMRC:

‘Outstanding results’ A spokesperson for HMRC responded to the UHY Hacker Young comments by noting that since 2010 the UK government had invested nearly £1bn in HMRC “to catch the cheats”, and now, “that investment is delivering outstanding results”.

“The vast majority of taxpayers play by the rules, and on their behalf we are increasingly employing sophisticated computer systems and risk analysis to catch the minority who don’t,” the spokesperson added.

January Cover

By
Aye Chan
-

Moe Kyaw ’s Journey

By
Aye Chan
-

The tale of how winning a competition in 1997 led to a trip to Manila and a career in accountancy. The Managing Partner of Win Thin & Associates tells the Myanmar Insider of his journey to the top of his profession and his view on the tremendous opportunities ahead.

Name: Moe Kyaw

Job Title: Managing Partner

Win Thin & Associates (Associate Firm of

Pricewaterhouse Coopers)

Age: 45

MI: How did you begin your career in Myanmar? How did you arrive at the position you are in today?

MK: I completed my Bachelor of Commerce degree from Yangon Institute of Economics in 1993. Thereafter I was admitted into the CPA programme. The Myanmar CPA programme is such that you do your bonded training while working for an audit firm. That’s how I became involved as a trainee with Win Thin and Associates (WTA), working from 9am to 5pm, after attending classes from 7am to 9am. After completion of my training, I joined the same firm as a junior auditor. It was at that time that Myanmar’s former military government tried to open up the country. A few investors came and one of them was SGV Manila. SGV was a member firm of Arthur Andersen at that time. They decided to appoint WTA as their sole Myanmar representative and eventually we also formed SGV Win Thin Consulting Ltd in Myanmar, headed by a manager from the Philippines. Our objective was for them to assist in the development of audit methodology for our firm. With the tie up, staff were given the opportunity to be sent to Manila for a month for training. There was a competition via a test, and I scored first. I was sent to Manila in 1997. That was my first ever foreign trip, as well as my first ever experience taking an airplane. After I came back, I became an audit supervisor and, one year later, was promoted to audit manager. By 2001, Arthur Andersen collapsed due to the Enron scandal and our SGV joint venture was also dissolved. We formed a new consulting entity independent of our audit outfit, named Win Consulting Ltd. In 2003, in an amazing gesture, our founder and chairman U Win Thin decided to distribute shares in WTA to all fully fledged CPAs working within the firm. We have to take note here that, in Myanmar, auditing services are allowed to be carried out by the firm as a corporate entity, but all the shareholders must be a CPA to render audit services. Audit reports can only be signed by a licensed Myanmar CPA. It was then that I became a shareholder/partner in WTA. In 2012, I became the managing partner of the firm.

MI: Do you ever think of diversifying your business interests?

MK: I believe, as auditors, we want to avoid conflicts of interests as much as possible. As such, I do not want to deviate much from the audit and assurance fields. I also avoided making investments into private companies. I have spent more and more time on consulting and advisory services from 2011 onwards, due to the significant increase in foreign client numbers after Myanmar opened up. We signed a Memorandum of Understanding (MOU) with PwC (Pricewaterhouse Coopers) in November 2012 and became the local affiliate of one of the Big 4. I provided tax and market entry advice for PwC clients. As part of my contribution back towards the development of the profession in Myanmar, I give lectures on the CPA programme on practical auditing. I am also a central executive committee member of the MICPA (Myanmar Institute of Certified Public Accountants) and a secretary of the CGA (Commerce Graduates Association).

MI: Do you see any of your firms having to change or adapt to Myanmar’s new trends and its opening up to international markets?

MK: With humility, I would like to point out that WTA is supposed to be the largest local accounting firm in Myanmar. We are also attending as the Myanmar representative the ASEAN federation of accountants. We are the only firm with a separate in house training centre, providing formal talks and training to staff each week; specialists from PwC, professors and experts from the Yangon Institute of Economics and the IMA Institute. Our firm also earned many invites to participate in international forms, seminars and talks relating to Myanmar. We have to continue to walk the current path to keep up our good approach. The audit field is protected from international markets, as foreign audit firms cannot sign off on local company audits. ASEAN members have also decided that public practice – i.e. auditing – will only be allowed to local CPAs in accordance with an MRA to be signed at ASEAN level. For the advisory side, the tie up with PwC allowed us to hone our expertise further through interaction with more international clientele. Having said that, we really need to improve on our audit methodologies and standards to be on par with international levels so that we can increase our audit fee in line with the fee these international firms are charging.

MI: With the benefit of hindsight, would you have done anything differently when you started, and if so, why?

MK: Both my parents are Karenies [one of Myanmar’s major ethnic groups]; my father is a civil servant and my mother is a housewife. As Karenies, we are typically contented people. If I had started in other lines, or if I had switched to other firms or fields, I would not have done as well as I am now.

MI: How do you feel that foreign companies now entering into business here will affect the local workforce, and do you feel that they will bring new opportunities to existing local businesses?

MK: In Myanmar, good talent with foreign exposure is hard to find. Local accounting experts are rare and in general not of high capabilities. It is offset by the fact that Myanmar people are generally quick at learning. Another resource would be Myanmar returnees [people of Myanmar origin working overseas, now returning home]. Their numbers keep on increasing. One issue keeping them from returning would be education for their children, so competition for qualified staff is very tough now. Our firm is preparing on many fronts to keep our staff; it’s not just about money, but management, continuing education and foreign training that we provide for our staff. We have regular staff parties and outings that we sponsor. And last but not least, I believe we pay our staff the highest allowances, bonuses among the CPA firms in Myanmar.

MI: From a business perspective, what do you feel are the biggest challenges facing you in the next one to three years?

MK: Capacity, skills and knowledge. We will definitely face increased competition locally and from abroad. In addition, right now, most professional services firms are small and dispersed. We will need to look at mergers and acquisitions; to become sizeable to compete with foreign firms for business.

MI: Hypothetically speaking, if you were entering into business for the first time in Myanmar, what are the key factors of consideration, and what would be the typical issues that you would address before putting money in?

MK: I would want to have adequate knowledge of laws and regulations. Also, foreign investors typically asked for issues on money transfers out of Myanmar. Since August 2012, a foreign exchange management law was enacted and there are official, secured ways to transfer money in and out of Myanmar legally. Investors have to go through the right channels for money movements to show investments into Myanmar.

MI: How do you see Myanmar comparing with its Asian neighbours in the short and long term future?

MI: I think it’s going to be a long while before Myanmar catches up with its neighbors. Firstly, our education system suffers from the past 60 years of weak policies, lack of good governance and management. There is one current generation of the Myanmar working population whose skills and competencies are well below those of our some Asian neighbouring countries, such as Singapore, Malaysia, Indonesia. Even in Cambodia, I noted that most of the people I interacted with are now improving their English, so we should not underestimate other neighbouring countries, too. At present, the government is no doubt going in the right direction by investing in infrastructure and capacity building. These are long term projects and the effects would not be felt in the immediate future. We have to be patient.

MI: If you could make one major change in the country to make it more competitive, what would it be?

MK: It would be two, not just one. First, it would be changes to the educational system; I mean, not just change a bit here and there, but wholesale changes; revolutionary change by adopting a system that works internationally and putting that in Myanmar without much localisation. A good analogy would be, instead of building a house from scratch, we just get the prefabricated unit. Second, we need to get the enforcement of law and order working. We have laws, but sometimes law does not seem to apply if you are a crony of some kind. This has to change.

MI: What advice would you give to someone looking to start up a business and invest in Myanmar? mk: To do the right things and to go down the straight path. Follow the law and it will be great for your future and your reputation. Sometimes, my clients ask why others can do the wrong things and get away and they cannot do the same. My standard response would be: When others are doing the wrong things and you are doing right, you become better! See this challenge as an opportunity. Just like a Myanmar proverb, “Kyee Lan Sar Sarr”, you do not have to eat like a crow, always turning around and watching out, if you do the right things.

MI: Can you briefly explain the differences of Myanmar accounting standards versus the IFRS or IAS? mk: Prior to 2002, we did not have formal Myanmar Accounting Standards (MAS) per se, even though we have referred to British standards since independence times. In December 2002, the Myanmar Accountancy Council adopted International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS) as MAS and MFRS (Myanmar Financial Reporting Standards). We only adopted certain standards, as some were not applicable to Myanmar at that point in time. In 2010, we replaced the old MAS and MFRS with new IAS/IFRS in place at that point in time. All our standards are in English. We adopted the main provisions; we have not yet prescribed a SIC (Standards Interpretation Committee) or IFRIC, which should be part of our standards. mi: What would be your advice to the future accountants/CPAs on their roles in the modern business world that Myanmar is gradually being exposed to?

MK: Myanmar opening up will offer you tremendous opportunities in the coming year. Be prepared to grasp these opportunities, stick to your ethics, and you will be in good stead.

 

 

 

 

 

 

Empowering the Future of Myanmar’s Women

By
Aye Chan
-

The construction industry has always been looked upon as the domain of the male of the species. This month, the Myanmar Insider interviews the dynamic Daw Hla Waddy, who took charge of a family building project and developed it into a major construction business.

Name: Daw Hla Waddy

Age: 65

Main Companies: New Step Services Co.

(Distributor of New Chinthe Concrete Brand)

Square Power Group Co. (Cement Factory)

Depawaddy Co. (Construction and Property

Development)

Profession: Businesswoman

Vice President of the Myanmar Women

Entrepreneurs’ Association (MWEA)

MI: When did you start your first business in Myanmar, and is it still operational today? If so, how has the business model changed from when you first started?

DHW: In 1987, I tied up with a contractor to build apartments over the land that I owned in Yangon. After the 1988 student’s demonstrations, the contractor ran off and I was left with a half completed property without a roof over my head. I had no choice but to take charge and complete the construction on my own. I took everyone from labour leaders to painters to engineers as my teachers and tried to learn as much as I could. After the building was completed, people liked the workmanship and I was asked to develop my relative’s and neighbour’s plots. That was how I got into business. It was really boom time for property development from 1990 and 1995 and I managed to develop many properties as I earned the trust of more and more people. The business continues today and still bear the original name “Depawaddy”. In terms of changes to the business model, the ratio of split between land owner and builder has changed somewhat; in the 90s, it was 60:40 in favour of the contractor builder. Nowadays it is more like 50:50.

MI: What made you decide to diversify your business interests?

DHW: In 1987, I tied up with a contractor to build apartments over the land that I owned in Yangon. After the 1988 student’s demonstrations, the contractor ran off and I was left with a half completed property without a roof over my head. I had no choice but to take charge and complete the construction on my own. I took everyone from labour leaders to painters to engineers as my teachers and tried to learn as much as I could. After the building was completed, people liked the workmanship and I was asked to develop my relative’s and neighbour’s plots. That was how I got into business. It was really boom time for property the upgrading of skill sets, knowledge and technology. For example, a Japanese group who want to build a concrete factory in the new Thilawa Industrial Zone want to JV with me. They are asking for ISO certification, which I currently do not have. I am therefore restructuring my companies at present to catch up to international levels and standards.

MI: Hypothetically, if you were entering into business for the first time in Myanmar, what type of business would you consider as having the most growth potential?

DHW: Since I do not know much business outside the construction sector, I do not think I am qualified to answer that. I would of course recommend the construction sector, due to the number of infrastructure projects sponsored by government alone. In terms of margins, construction and property development development from 1990 and 1995 and I managed to develop many properties as I earned the trust of more and more people. The business continues today and still bear the original name “Depawaddy”. In terms of changes to the business model, the ratio of split between land owner and builder has changed somewhat; in the 90s, it was 60:40 in favour of the contractor builder. Nowadays it is more like 50:50.

MI: What made you decide to diversify your business interests?

DHW: In 1998, I was engaged as a contractor to construct most of the FMI City; Yoma Bank neighbourhood centre, sports club and more than 300 bungalows. In around 2000, there was a serious economic crisis in Myanmar, with uncontrollable inflation, as well as a banking crisis. The construction industry was in recession and I was in serious debts, as the prices I agreed with FMI for construction were now falling below the cost of my materials. It’s like a famous Myanmar proverb, “Twat Yay Taw – Sat Tha Htay, Twat Kyi Taw – Sat Ma Shi”, which means “At the time of planning, I was a rich factory owner, by the time of the actual audit, I did not even own the machines”. In 2004, I was offered the position of Managing Director at Chinthe Concrete, a company controlled by SPA (Serge Pun and Associates), a related company of FMI. When the five year investment license was completed for Chinthe Concrete in 2009, the company was voluntarily liquidated. I was offered to buy over the assets of the company at revalued book values. That was how I ended up from being a contractor developer to the owner of New Step Services Co Ltd (New Chinthe Concrete). Eventually, I ended up providing one stop service in the construction industry, from piling concrete to construction. If you had lived in Myanmar during the past 20 years, you would also have learned how to take opportunities as they come along. Government policies at that time were haphazard; I called it “elephant ear government economic policies” – opening and shutting certain things at regular intervals.

MI: Do you see any of your main business interests having to change or adapt to Myanmar’s new trends and its opening up to international markets?

DHW: As Myanmar opens up, we have more foreign investors coming in and we are also subject to more competition. My businesses need international partners to replace and upgrade old machines and capital injections to compete with international players. We directly benefited from the government opening up the country; the market demand for our products and services has increased tremendously and our sales have also grown significantly for the past two years.

MI: With the benefit of hindsight, would you have done anything differently when you started your first business, and if so, why?

DHW: Business wise, I would not have done anything differently. From a personal perspective, I wish I had taken up further studies that would help me run my businesses more effectively. Both my parents are farmers from the Irrawaddy Division and I was the first ever to graduate from our village. I was therefore content with a basic degree at that time.

MI: How do you feel that foreign companies now entering into business here will affect the local workforce, and do you feel that they will bring new opportunities to existing local businesses?

DHW: Yes, entry by international players has pushed up salaries and demand for skilled personnel. Myanmar is already facing a skill shortage, even prior to their entries. At the same time, most of the businesswomen at the MWEA had the foresight to see this coming a couple of years ago. As such, we have discussed and implemented various methods to keep our skilled staff. For myself, my companies set aside ten percent of yearly profits for our staff. We also provide housing benefits, which staff appreciate, as rentals are high and space is a premium in Yangon. In addition, we also paid volume based bonuses depending on our factory production volume. All in all, it’s both good and bad for local businesses; some who have the capacity to serve or tie up with foreigners would benefit, and those who do not will be left worse off. The capacity to tie up, in turn, is dependent on the track record of the companies.

MI: From a business perspective, what do you feel are the biggest challenges facing you in the next one to three years?

DHW: I felt the biggest challenge would be the upgrading of skill sets, knowledge and technology. For example, a Japanese group who want to build a concrete factory in the new Thilawa Industrial Zone want to JV with me. They are asking for ISO certification, which I currently do not have. I am therefore restructuring my companies at present to catch up to international levels and standards.

MI: Hypothetically, if you were entering into business for the first time in Myanmar, what type of business would you consider as having the most growth potential?

DHW: Since I do not know much business outside the construction sector, I do not think I am qualified to answer that. I would of course recommend the construction sector, due to the number of infrastructure projects sponsored by government alone. In terms of margins, construction and property development typically have margins of around 40 percent, whereas concrete production and selling only earns me like 25 percent in a good year.

MI: How do you see Myanmar comparing with its Asian neighbors in the short and long term future?

DHW: The earliest that we can be on par with some of our neighbours is ten years. It depends on the policies of the government. The government has to implement policies that encourage business growth both in the short term and long term. Businesses, in turn, will drive the economic growth. MI: If you could make one major change in the country for any of your business ventures, what would it be?

DHW: The banking system and funding for the SMEs. Currently it’s extremely difficult to raise funds for ventures. All borrowings are based on collaterals. There is no such thing as project financing yet, so I really hope that there will be more funding available for SMEs undertaking projects.

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

DHW: I believe most foreign investors are adopting a “wait and see” approach to investment in Myanmar. I have met up with many; we meet, we greet, we show them around and they go home. I think they are waiting to ensure that there will be no changes in government policies after 2015. One piece of advice would be, “No risks, no returns”. If you want everything to be ready and stable in Myanmar, you cannot expect to see high returns.

MI: In addition to running your own business, you have also acted as the head of the Myanmar Women’s Entrepreneur Association. How do you ended up being in that position?

DHW: In 1995, Professor Daw Yi Yi Myint, head of the Yangon Institute of Economics then, wanted to start the MWEA. She saw an article about me being the only prominent woman in the construction industry in DANA magazine and invited me to join to be part of an initial gang of 30. I was the MWEA joint secretary for eight years, and secretary for another eight before I assumed the current position of vice president.

MI: Can you briefly explain the activities of the MWEA?

DHW: The MWEA is open for all active businesswomen or women who are involved in business education. Our main objective is to develop female entrepreneurs. We provide extremely useful networking sessions; new members can showcase their wares and market their products through monthly gatherings. We also provide development courses during these events.

MI: How does the MWEA encourage more women to become entrepreneurs?

DHW: We provide monthly talks, we provide guidance to those women in need. We also realise the importance of education for women. We have done a survey which shows that families are generally poorer if the women in the family are uneducated. As such, we sponsor girls for primary education for five years. We started that programme (“Foster Mothers”) in 2004 and more than 400 poor and underprivileged girls have benefited from this. We also provide special loans to fund promising ventures from villages and/or farmers. To support the government’s initiative to lower poverty across the country, we have also began providing micro loans to some female staff of the MWEA members.

MI: As a female entrepreneur running such a big enterprise, how do you manage to balance work and family?

DHW: As women, we have to display many fronts. For husbands, we have to take care of them, sometimes sweet talk to them and put them in front of us. These little efforts will count a lot towards getting their unwavering support. For children, love and affection are a must. There is always a supportive husband behind every single successful female entrepreneur.

MI: What would be your advice for aspiring female entrepreneurs?

DHW: With Myanmar opening up, there are bound to be plenty of opportunities available. As such, I would caution them to be more goal focused and to take on limited challenges. Do not do everything, and everyone has bandwidth!

 

 

 

 

 

 

 

 

 

yangon day Trips

By
Aye Chan
-

Working in the city everyday can take its toll on our sanity. I try to get away for a few days every month to recharge the batteries and enjoy some of the delightful places that Myanmar has to offer. Here are five of my favourites.

Bago

The city enjoyed its glory days in the 13th century when Kubilai Khan’s Mongol forces destroyed Bagan, forcing King Warau to move the seat of his Mon Empire to Bago. The city was annexed by the Taungoos in 1539 but continued to flourish as a busy river port before the river changed its course in the 18th century, leaving Bago to become the mid sized regional town it continues to operate as today.

Hardly surprisingly for a city so steeped in Buddhist history, Bago is renowned for its abundance of temples and pagodas and has been described by visitors as a “Buddhist Disneyland”.

Its most famous pagoda is Shwemawdaw, standing 46 feet higher than the more famous Shwedagon in Yangon and said to be the tallest pagoda in the world. It has been rebuilt several times over the years and apparently contains two hairs and two teeth of the Buddha.

Other places worthy of a visit are the Hintha Gon Pagoda, the reclining Shwethalyaung Buddha and Kanbawzathadi Palace, a reconstruction of the palace built by 16th century ruler King Bayinnaung.

Bago can be reached in less than two hours from Yangon’s Aung Mingalar Bus Station.

Dallah

As Yangon sprouts shiny, modern condominiums and imports the latest Japanese cars, across the river in Dallah, life continues much as it did hundreds of years ago.

Bulls plough the abundant farmland around the town and houses are not much more than basic wooden huts on stilts. Outside, the owners sit lazily, watching the day go by and puffing on their cheroots.

It’s a beautiful, calm spot to really get to grips with the country without venturing too far from Yangon.

The operators of the Dallah Ferry, which leaves from Yangon’s Pansodan jetty, have (unfortunately) recognised the town’s popularity among tourists – hiking foreigner prices five fold in the last few years – but still it doesn’t attract too many tourists, and the ten-minute ferry trip offers a fascinating, if brief, glimpse at river travel in the country.

In Dallah itself, the most popular ways of travelling around are either by bicycle or trishaw, and there are a number of placid pagodas, but the town’s highlight is the simple lifestyle offered in comparison to the relative chaos on the other side of the river.

Twante

Twante sits on the scenic canal by the same name, and it is through this waterway that boats travel from Yangon.

Once renowned for its art, today Twante attracts visitors interested in the city’s burgeoning pottery industry. Pots are worked by hand as an assistant manually turns the potter’s wheel. Once the pots have been painted and dried, they are baked for five days. They are then transported to the surrounding Irrawaddy region for sale, where they are generally well received thanks to the reputation Twante’s pottery industry has built for itself.

The most popular pottery shed is Oh Bo (most rickshaw drivers in the town will have heard of it), and another popular site is the Shwesandaw Pagoda.

British writer George Orwell also spent some time living in the town and the old Police Commissioner’s house in the town is thought to be where he lived during his brief stay there.

Thanlyin

Despite being an important town during the British Empire, Thanlyin (named Syriam by the British) was actually founded by a Portuguese adventurer by the name of Filipe DeBrito.

DeBrito served under the King of Arakan, becoming the governor of Thanlyin in 1599, but in 1613, his empire was ransacked by the Burmese and DeBrito’s reign came to a humiliating end as he was impaled on a spike for desecrating Buddhist shrines.

During World War II, Thanlyin was used by foreign – mostly timber – merchants, but that population has now moved on and has been replaced by a large Indian contingent.

The town these days is very small and mostly revolves around an old church from the 18th century, as well as a central marketplace, while nearby Kyauktan is another popular spot worthy of a visit.

mount kyaiktiyo (golden rock)

Leave Yangon early in the morning, climb aboard a bus from the bottom of the mountain that traverses the winding roads to the top, and rush back down to catch the first bus back, and Mount Kyaiktiyo – one of the country’s most pious sites – is possible as a day trip. However, if a little more time is available, it’s a more comfortable trip over two days.

Kinpun is the mountain’s ground zero. It’s a pleasant, basic town, accessible in less than four hours from Yangon. A few local restaurants here and there and the one road filled on each side with shops selling the usual tourist trinkets, but aside from that, there aren’t many reasons to stick around. There are a few basic but reasonable accommodation options in town for those who want to spend the night.

Some choose to travel to the top by bus but, again, those with time on their hands are advised to walk.

It’s challenging but not too strenuous, and can usually be done in about five hours. The path is well maintained and you will be greeted by the friendly smiles of the local people as you ascend.

Up top, as the Golden Rock is a popular pilgrim site for Buddhists, it is particularly busy, but it’s worth spending a bit of time to take in the beautiful views that stretch across the dense Mon forestry.

Investing in Rubies

By
Aye Chan
-

Rubies are unquestionably the most sought after of all the precious gemstones in the world, and amongst the most expensive. There are only a few countries in the world that produce rubies, with Myanmar being the industry leader, generating over 80 percent of the world’s supply of these precious stones.

Looking back at history, you will see that gold and silver coins and a variety of precious gemstones have long been used as an established means of bartering for goods and services. Today, natural, unenhanced rubies are among the rarest and most valuable of all gemstones.

As an investment, precious gemstones and diamonds are considered to be an investment in a hard asset, just as gold and silver are. Today, in many parts of the world, investments in hard assets like land, gold and gemstones are preferred over stocks, bonds, currency and other soft assets.

Because the value of gems has shown to increase at a rate equal to inflation, investors should also expect to hold the stones for 10 years or more to see a sizable return on their investment. Furthermore, investors who collect with a purpose will not only add value to a gemstone investment, but also greatly enhance their collection’s intrigue – especially among other collectors and investors.

Star Rubies are even rarer than the average ruby stone. It is estimated that only one out of every one hundred rubies produced becomes what we know as an elusive “Star Ruby”. These incredible gemstones exhibit a distinct six-ray star that moves across the surface of the stone when the stone is moved to reflect a light source. This brilliance represents the precision of the cut, which allows the maximum amount of light to be reflected back to the eye. Stones with lower than 50 to 70 percent brilliance lose light through the sides of the stone due to imperfections of the stone’s angles.

All things considered, it is no wonder these magnificent gemstones are in high demand amongst many private investors. If you’re looking to invest in a ruby and own one of the rarest of rare gems, a ruby with an excellent cut will offer the best mix between the smoothest finish, the heaviest weight and the shape’s precision. When it comes to high quality rubies, heavy stones hold value more consistently than lighter stones.

What to look for
  • Clarity – Compare clarity according the American Gemological Laboratory (AGL) clarity guide and look for a Free of Inclusion (FI) rating. “Clarity” represents the internal perfection of the stone, and because investment quality rubies require the highest clarity, you must look for flaws (internal cracks or chips) within the stone. You can see some flaws with the naked eye, but you might need a jeweller’s loupe to view the stone at 10x or 20x magnification.
  • Tone – Compare the tone of the ruby, and look for a medium tone score of 55 to 65. Too light a tone and the ruby will appear diluted and washed out. Too dark and the transparency suffers.
  • an AGL rating of “excellent”. “Cut” represents the symmetry of the stone’s shape, the weight of the final cut stone and the brilliance of the finish. Investment grade rubies with an excellent cut offer the best mix between the smoothest finish, the heaviest weight and shape’s precision.
  • Brilliance – Compare brilliance and look for a minimum rating of 95 percent. “Brilliance” represents the precision of the cut, so that the maximum amount of light reflects back to the eye. Stones with lower than 50 or 70 percent brilliance lose light through the sides of the stone due to imperfections of the stone’s angles.
  • Weight – Compare weights and look for a minimum of one carat. “Carat” represents the weight of the stone derived from an ancient measures and weights system. When it comes to investment quality rubies, heavy stones hold value more consistently than lighter stones.
  • Certification – Examine the certification agency and look for a score certified by the AGL. The AGL has standardised international guidelines to describe stone quality. Stones graded without a standardised grading certificate might have undisclosed flaws or might not match third party grading systems.

 

Buy Right

The natural beauty and rarity of gemstones has inspired humanity to use them for personal adornment for as long as history remembers. Some gemstones, such as rubies, can be priced higher than diamonds, as their scarcity endows them with a greater market value. The value of high quality rubies has appreciated tremendously in recent years, as known sources are almost depleted. Owning gemstones not only provides a source of beauty and admiration, but it can also prove to be a sound investment when done right. Anyone can profit from investing in gemstones, as long as you have a strategy that works for you.

Basic tips that you need to know if you are seeking out gems as an investment include:

  • Learn as much as possible about the gemstones – Mistakes made in such an investment can be very expensive. For instance, with so many treatments available today, it is imperative that you know the details of any treatments done to your gemstone collection.
  • Buy the best stones you can find… And be patient!!! – Gemologists from an approved laboratory must certify all purchases.
  • Try to buy below retail prices – Usually, gems bought as an investment should be bought from wholesalers, either as particular gemstones or in lots. Go to reputable dealers or wholesalers who mine or cut the stones themselves. There are many of them in Myanmar – just look for the right ones. It takes patience, but it is certainly worthwhile.

 

 

 

Tell Time with class and Flair

By
Aye Chan
-

Think of luxury watches in terms of automobiles: You have the high end (Maybach) brands, the mid range (Cadillac) brands, and the “basic luxury” (Volvo) brands. Although any of them could cost you a small fortune, some are more exclusive and more highly coveted than the others. Yet, aside from their hefty price tags, these brands have something else in common: Owning a luxury car, no matter how expensive or how exclusive it is, is an investment, as it is with a luxury watch.

Whether you’re in the market to start your own collection or to purchase a gift for someone else, here are a few things to remember when shopping for time.

Style

The unspoken rule about luxury watches is that if it doesn’t go well with your suit, then you cannot consider it a “luxury”. Of course, this rule is moot if you’re purchasing a sports watch. Despite this, consider a watch’s versatility before purchasing. Determine if it’s an everyday watch, for more formal evening gatherings or for sporting events. For this reason, a classic watch is always a wise choice for those who are just beginning to build their collections.

When choosing watches, most men value brand performance (as each brand has a distinctive advantage in terms of consumer loyalty over its competitors, but we’ll get to that in a bit), build quality, features and the watch’s exclusivity, regardless of the price. On the other hand, most women prefer exclusive brands and beautiful, intricately designed and crafted watches, such as those embedded with rare gemstones or those with gold and antique finishes.

If you’re purchasing a gift for your special lady, consider the Cartier La Dona watch; a beautiful and elegant timepiece with a diamond bezeled case and bracelet set in 18k white gold with an elegant, polished finish. Given the fact that this six figure watch has already been discontinued, giving one to your lady love would surely earn you some brownie points

For men, the Breitling Navitimer combines the appeal of aeronautics and the beauty of a chronograph. With a rose 18k gold finish set on a black dial, an elegant brown crocodile leather strap and a five figure price tag, the Navitimer is sure to turn heads.

Again, the first thing to consider when buying luxury watches is that you are making an investment. Figure out if you want to invest in a specific but unique watch, or if you want a classic watch that you can wear everyday.

Water resistance

Given that luxury watches come with expensive tags, it only makes sense to purchase one that will last. That being said, make sure you invest in a watch that is at least 50m water resistant. This means that you can use it while swimming in shallow water or bathing. If you need a watch for snorkelling or other similar water activities, try a watch with 100m resistance. Finally, get a diver’s watch that is at least 150m water resistant if you’re into scuba diving.

When it comes to diver’s watch, the IWC Aquatimer Chronograph Blue is always a popular choice. With a blue dial that provides maximum legibility, even on night dives, it complements every frequent diver’s ensemble.

Brand Name

In the same way a car enthusiast would know the value of your car, watch aficionados will be able to spot a watch’s exclusivity and rareness from afar. That being said, the brand plays a pivotal role in determining a watch’s desirability.

Before we begin discussing different brands, it would be worth pointing out that such brands often carry many products on a single line, meaning that a brand may offer a range of both high end and mid range luxury watches. High end luxury watches showcase exclusive design and astonishing craftsmanship, considering that the majority, if not all, of the watch’s components are handmade. High end luxury watches are also produced in smaller quantities, thus making each piece extremely valuable in its own right. Such items are available only at specialised watch dealers and jewellery stores and prices start at around $5,000 for stainless steel watches and can reach into the millions for other types. Mid range watches are the “stereotype” of luxury; durable, beautiful watches that are both elegant and valuable. Mid range luxury watches are found at watch dealers and jewellers. Stainless steel models start at around $1,000 and the most expensive of the gold on gold variants could reach as much as $20,000. Luxury watches, on the other hand, are sold in department stores and malls. While their prices may be a bit more expensive when compared to “normal” watches, this range of watches is still at the lower end of the luxury spectrum. Nevertheless, luxury watches are elegant, stylish and trendy. A stainless steel model could go for as low as $500, while a gold on gold bracelet variant could sell for as much as $4,000. A watch’s brand, however, is only as impressive as its appearance. If you neglect to properly maintain your luxury watch, then it could appear as ordinary as the ones you will see on the street.

With these guidelines in mind, you are well on your way to purchasing a fine luxury watch.

Big hand. Small hand. Slow Hand.

By
Aye Chan
-

Super rockstar Eric Clapton has always had a passion for music; and the same can be said about his collection of luxury watches.

In 2003, Christie’s auctioneers in New York put up for sale 23 of Mr. Clapton’s Rolex watches. From the collection, 16 watches were chronographs, which are said to be his favourite watches of all time.

His eye for class and distinction, as well as a shrewd knowledge of the market, saw a stainless steel Rolex Oyster Cosmograph, known as an “Albino” (the four dials are all the same silvery colour) was sold for $50,200. However, had he held on to it, five years later the same watch sold for $505,000, although this might have had something to do with the fact that it was previously owned by the rock god.

Another in the collection, the one that he was wearing when he first played the super hit Layla, is a 1965 stainless steel Rolex Yacht Master, which fetched a whopping $125,000 under the auctioneers hammer (the watch is fine, that’s just a phrase).

His penchant for chronographs extends to the Patek Philippe luxury brand. The top seller at the auction was his extremely rare 1950 pink gold chronograph that went for $175,000.

His bug for collecting fine watches has become well known amongst the high society elite and when Christie’s in Geneva sold his platinum perpetual calendar chronograph watch with moon phases in 2012, Patek Philippe had already decided to cease production of this model, making it a very rare and very precious collector’s item.

Two other watches from this run are now cased in platinum. One is on display at the Patek Philippe Museum, while the other was reportedly sold for an undisclosed sum in a private transaction in 1989. Mr. Clapton then purchased this watch sometime in the late 1990s, again, for an undisclosed amount. The same watch was sold at auction in 2012 for over $3,625M – showing that, as with his music, timing is what it’s all about.

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