Sports Motion: January 2018

Wednesday, January 17, 2018

VP Encourages Traders to Maintain Rice

Zarni Min Naing/MBT

Workers are loading rice sacks on their shoulders at Botahdaung Jetty, Yangon, as the H.E U Myint Swe, Vice President No.1 encouraged traders to maintain rice export ability as the country’s major export itemH.E. U Myint Swe, Vice President No.1, encouraged traders to maintain the amount of rice exported and feels optimistic about Myanmar’s potential for future growth in the sector.

Myanmar exported 2.2 million tons of rice in first 8 months of 2017-18 Fiscal Year, a record high amount in more than 60 years, therefore, U Myint Swe, urged the traders to maintain the export amount.

‘‘This is a record high in over sixty years since the independence, in eight months we reached the amount of the previous one year’s amount. If we keep up the amount of export, then we can compete with Thailand and Vietnam in global rice market,’’ U Myint Swe said.

“Increasing rice export can help farmers’ livelihoods improve, and provide food security for the country,” U Aung Htoo, Deputy Minister of the Ministry of Commerce, said.

As the volume of rice export in first eight months of 2017-18 Fiscal Year reached 2.2 million tons, the value of rice export reaches over $673 million and over $ 400 million higher than of the same period of 2016-17 fiscal year.

In 2016-17 Fiscal Year, 1.7 million tons of rice was exported and the Ministry of Commerce estimates the amount of rice export this fiscal year to reach 2.8 million tons.

Higher demand from Sri Lanka, Bangladesh and African countries and expanding rice export to 14 other countries are the main reasons the rice export increased.

According to the data from United States Department of Agriculture (USDA), Myanmar is now the fifth largest rice exporter after India, Thailand, Vietnam, and Pakistan. Rice sector is included in National Export Strategy (NES) and beans and rubber are included in NES.

Nauk ma mhar tot par buu

Director :

Type : Comedy

Actor : Phyo Ngwe Soe,

Actress : Thet Mon Myint,

Watch movie from original source - Part 1

Tuesday, January 16, 2018

Singapore Tourism Board to Offer New Tourism Packages

Tourist are visiting in Bagan, an ancient city in central Myanmar, southwest of Mandalay, standing on the eastern banks of the Ayeyarwady River

Singapore Tourism Board in cooperation with Mandalay Region Hotels and Tourism Department will offer new tourism packages for Singapore and Mandalay Regions, these will be available for travelers of both countries in early 2018.As for Myanmar travelers to Singapore, the new packages will include four days and five nights, which offer direct flights from Mandalay to Singapore and will have better customer service than previous flights to Singapore. “The new travel package will reduce time and energy for those who want to visit, or for those doing medical checkups in Singapore.” according to U San Yu, Deputy Director of Mandalay Region Hotels and Tourism Department,

‘‘By doing so, tourism business between Mandalay and Singapore will develop. Visitors can take a direct flight from Mandalay to Singapore or vice versa. For people who want to visit Mingun in Sagaing or Bagan, now they won’t need to spend extra time or money, so there will be less costly for them,’’ he told Myanmar Business Today.

Singapore based Silk Air will provide direct flights to Mandalay. This is good news for Mandalay because many travelers visit famous destinations such as Mingun, Sagaing, Bagan, and Poppa. Almost all visitors travel to these areas during their stay in Myanmar, direct flights from Singapore to Myanmar will be more convenient for those who want to visit these areas.

2.9 million visitors visited Myanmar in 2016 and number of visitors is expected to reach 7.5 million in 2020, according to the Ministry of Hotels and Tourism.

Myanmar Works for Sustainable Tourism Development

U Aung/Xinhua

Temples are seen at the ancient city of Bagan in Mandalay region, Myanmar. Bagan stood as an ancient capital from 11th to 13th centuries and was a Buddhist center with about 10,000 pagodas and religious structures spreading more than 80 sq-k

Myanmar's Second Vice President U Henry Van Thio recently called for exploring sustainable tourism development plan, stressing the need to create new tourism routes and attractions and to combine innovation with its abundant natural resources to create more choice for tourists. U Henry Van Thio, who is also Chairman of the Central Committee for the Development of the Natural Tourism Industry, urged for laying down systematic plan for developing the tourism sector.

"Despite the abundance of natural scenery and tourist attractions, the number of visitors to Myanmar still remained below expectation," he said.

While promoting Myanmar to the world as a place of interest, he emphasized the need to provide convenient and safe services and safe food to visitors.

He highlighted the points including the availability of visa-on-arrival, direct international flights and visa-free entry to nationals of targeted countries.

President of Myanmar Tourism Federation U Yan Win suggested that the government supply funds for tourism development, open border entrances and give visa exemption to visitors from member countries of the Association of Southeast Asian Nations (ASEAN) as well as from China, Japan and South Korea.

According to statistics, more than 2.9 million foreign tourists visited Myanmar in 2016 and as of the end of October 2017, the figure stood at 3.1 million, an year-on-year increase of 20 percent.

Myanmar expects 3.5 million tourist arrivals in 2017.

In accordance with the theme of the world tourist organization of last year, which is "Sustainable Tourism -- a Toll for Development," Myanmar has adopted a policy of sustainable development of tourism.

Myeik Archipelago in southern Tanintharyi region, made up of more than 800 islands, is attractive for eco-tourism, such as hiking, bird watching, diving, trekking and snorkeling.

The visitors also used to enjoy sightseeing trips on luxury motor boats.

However, visitors are banned from touching natural coral reefs and taking the shells of sea snails.

According to the tourism authorities, nine local and foreign companies have been granted to build more hotels on 12 islands of Myeik, expecting 200 more hotel rooms to be added in the current open season.

Meanwhile, Myanmar's Tourism Federation has called for preserving Indawgyi Lake, the country's largest fresh water lake northernmost Kachin state, also a heaven for birds, to promote eco-tourism.

Visitors were exploring the area by boat or on hikes or bikes.

Myanmar is also striving for enlisting Bagan as one of the world's cultural heritages lying in the central part of the country with thousands of religious edifices and pagodas.

Cooperation is being made with intellectuals and technicians for the maintenance of Bagan, which has over 3,000 Buddhist temples, monasteries, stupas and momuments.

Energy tycoon studying projects in Myanmar, ready to invest billions

Gulf Energy Development Pcl’s billionaire founder Sarath Ratanavadi plans 150 billion baht ($4.6 billion) of investment in power plants over the next four years after the company’s listing this month.

The initial public offering’s proceeds will help fund some of the outlay, with the rest coming from loans, Sarath, the company’s chief executive officer, said in an interview in his Bangkok office. His net worth is about $2.2 billion based on Gulf Energy’s $733 million IPO, according to the Bloomberg Billionaires Index.

"Gulf Energy will have stronger financial leverage for more expansion following the IPO, as new power plants require a large amount of money,” Sarath said on Friday. “The company is looking at a number of opportunities in Thailand and neighboring countries.”
The firm is studying projects in such countries as Myanmar, Laos and Vietnam, where faster economic growth will boost demand for electricity, he said. Southeast Asian nations are enjoying an economic boom, spurred by a global recovery that’s buoying exports.

Read about how Gulf’s IPO minted Thailand’s second billionaire in a month

Sarath said the investment plan will focus on gas-fired electricity and probably cover acquisitions of existing power plants and green-field projects. Gulf Energy generates almost all of its power from natural gas and will double output to 4,647 megawatts by 2024, according to a filing.
Coal faces regulatory curbs due to pollution and returns on renewable energy are comparatively low, Sarath said. Such risks underscore the need for measured expansion, he added.
The IPO is the largest first-time share sale in Thailand since Jasmine Broadband Internet Infrastructure Fund priced a $1.7 billion offering in 2015, according to data compiled by Bloomberg. It adds to the $2.5 billion of first-time share sales in the country this year, up from $1.5 billion during the same period in 2016, the data show.
Thailand is set for a “strong recovery” after years of slow economic growth, Sarath said, adding that industrial customers have boosted demand for electricity, steam and other supplies.

Source: Bloomberg

Foreigners interested to purchase real estate in Myanmar, but leagal ownership not allowed and prices remain unrealistic

Prices continue to drop in the Myanmar property market as a dramatic oversupply in all categories of Yangon real estate persists! In our update for previous years, extreme prices were common – $8psf for office space, and $5500/mo+ for quality apartments. With the opening of so many new real estate projects of all types – malls, hotels, condos, and offices – key industry trend measures such as purchase prices, rental rates, occupancy levels, and average daily rates are at almost unbelievably low levels(for this market), with more downward pressures expected as several mega developments open in the coming months.

The lifting of U.S. Sanctions has also opened up access to a few key building that were previously on the blacklist. In short, it is STILL a great time to be an occupier/renter seeking new spaces. Expect to see rent prices continuing to drop in 2017 and 2018.

Until recently, real estate was one of the limited numbers of wealth management vehicles in Myanmar, and most developments were locally-owned. Under Western sanctions that prevented interaction with international banking and capital markets, successful business persons in Myanmar stored their wealth in land and buildings. They regularly bought and sold land assets, like institutional investors in the west would buy and sell blue chip stocks and mutual funds, with speculation driving up prices. The price of land further skyrocketed as the suspension of western sanctions became reality, and foreign developers were priced out of the market.

Myanmar’s New Companies Law

On December 6, 2017, Myanmar’s President U Htin Kyaw approved the new Myanmar Companies Act, 2017, replacing the country’s century-old Companies Act of 1914. The new law aims to change the way companies are regulated in the country. It will modernize company formation and management, and significantly revise corporate governance in Myanmar, bringing the country’s company legislation at par with international standards. The Act was drafted by Myanmar’s Directorate of Investment and Company Administration (DICA) with technical assistance from the Asian Development Bank (ADB). It offers a wide range of regulations that are relevant to foreign investors and businesses operating in Myanmar. Some of these are discussed below.Change in the definition of foreign companiesOne of the most significant changes introduced in the Act is the new definition of foreign companies. In the old Companies Act of 1914, even a company with a one percent of its shares owned by a foreign investor was classified as a foreign company. To sustain the “local company” status, companies had to maintain a 100 percent local ownership, thereby largely restricting foreign investment in Myanmar’s domestic companies.

The new Companies Act allows foreign investors to hold up to 35 percent of shares in a domestic company without the company losing its classification as a “local company”. The change in the foreign company definition unlocks huge business potential in areas that were previously restricted to foreign investors, such as banking and finance. It authorizes foreign investors to trade in shares on the Yangon Stock Exchange,which was previously restricted to local companies.
Further, it is much easier for companies to transform its legal status from “foreign” to “local” or vice versa, without seeking prior approval from the regulator. The concerned domestic company only need to notify DICA, if it transforms its legal status to that of a foreign company, that is, if the foreign investors share in the company increases beyond the prescribed limit of 35 percent.
This effectively opens up Myanmar’s economy to foreign minority ownership and paves the way for more foreign investments.

Amendment to rules related to company administration

Earlier, every company required a minimum of two shareholders and two directors for the incorporation of the company. The new Act reduces this requirement to a minimum of one shareholder and one director, allowing investors to make their Myanmar company a 100 percent owned subsidiary.
As per the new legislation, the director of the company need not be a Myanmar citizen, but must fulfill conditions to pass the “ordinary resident” status. In other words, she or he must be present in Myanmar for a minimum of 183 days in a year to qualify as the director of a company.
Further, the new Companies Act explicitly details the duties of corporate directors, including the duty regarding the use of position and use of information. It also details duty in relation to obligations of a company and duty to act with care and diligence.

Other important changes

Capital management: The Act allows more flexible capital structures and changes to share capital that will permit companies to raise or reduce capital with fewer procedural requirements.

Company registration process: Simplifying the application process for incorporation and registration of companies, the Act exempts investors from the need to obtain a trade permit from DICA. The change will significantly enhance the ease of doing business in Myanmar.

Protection to minority shareholders: Allowing for more flexibility in the organization of a company, the new legislation introduces more protection to minority shareholders. It empowers such shareholders to sue on behalf of the company, even if the directors of the company do not approve of the claims. Companies may also provide other instruments in their constitution that minority shareholders may use to further their interests.
Further, the law legally authorizes companies to carry on any business and activities, after obtaining a relevant license and therefore no longer need to define the objectives of the company in its Memorandum of Association.

Source: ASEAN Briefing

Southeast Asian Mobile Money Market Heating Up in 2018

Yangon, Myanmar, 8 January 2018 – Southeast Asia's mobile money and agent banking scene continues to race
forward as regional authorities, international experts and industry stakeholders gather once again for the 9th
Mobile Money & Agent Banking Summit 2018 to be held on February 7-8 at the ParkRoyal Hotel in Yangon,
Myanmar.

This ninth edition of the strategic regional assembly will focus on the most pressing issues and concerns of these
rapidly developing markets such as: the future of digital payments; financial inclusion challenges; e-money
functionality; cross-border transactions; social media payments; the digitizing of cash; and more. The Summit's
regional focus will also cover major developments in neighbouring countries including India's payment
ecosystem; Cambodia's first remittance service, as well as a primer on Lao's mobile money landscape.

The 2018 Summit's host of industry experts presenting and sharing their insights and forecasts include: Stephen
Swan, Head of Product & Digital at Wave Money; Mark Flaming, Chief Digital Officer of Yoma Bank; Jacques
Voogt, Chief M-Commerce Officer at Ooredoo Myanmar; Tim Scheffmann, CEO of Scheffmann Ltd; Justin Ho,
Vice President of Amdocs Mobile Financial Services; Paul Luchtenburg, Country Coordinator (Myanmar) for
UNCDF; Pramod Saxena, Founder & Chairman of Oxigen Services India; Anthony Perkins, Chief Digital
Services Officer, Smart Axiata Cambodia and more.

“In Southeast Asia, mobile money is moving at an amazing pace with fintech companies WeChat and AliPay in
China leading the way. It’s no longer just about Mobile Money and more about the fintech companies in the
region creating better value propositions and relevant services around messaging tools and social engagement,"
said Stephen Swan, Head of Product & Digital for Myanmar-based Wave Money. "Grab is another example,
whereas it first started out as a cab hailing service to now providing a digital wallet in some countries that allows
users to make instant purchases with their Grab credits while earning reward points for every transaction. The
launch of the developer portal from Wave Money is in recognition of the fast-growing e-commerce sector in
Myanmar and the company’s commitment to provide fast, easy and safe financial services to a diverse range of
customers including businesses in Myanmar."

Key event partners that will be exhibiting at the event include leading communications and media software and
services provider Amdocs, and the blockchain-based microfinance and payments platform Everex.
Justin Ho, Vice President of Amdocs Mobile Financial Services, said: "The 9th Mobile Money & Agent Banking
Summit 2018 presents a wonderful opportunity for us to meet with some of the most prominent players in the
Emerging Markets financial and telecommunications and technology ecosystem, especially in the burgeoning
Myanmar market. We look forward to brainstorming and sharing our insights and discussing how critical agent
banking and open banking initiatives will play an important role in the coming years for financial and greater
economic inclusion."

Conference organizer Magenta Global (Singapore)'s CEO, Maggie Tan, added: "The 2017 World Payments
Report found that global digital transaction volumes grew 11.2% in the last year, reaching more than 433 billion,
the highest growth of the past decade. Emerging economies such as Myanmar, Cambodia, Vietnam, Laos, India,
Bangladesh are implementing digital payment innovations. We invite you to join this Summit and hear how these
countries and their stakeholders are navigating the digital disruption."

Nestle to produce half of its products in Yangon

Imports of Nestle products to Myanmar would be reduced to 50 per cent next year when the firm’s recently-opened factory in Dagon Seikkan Township of Yangon reaches full production.

HayriDevrimCobek, managing director of Nestle Myanmar, said in an exclusive interview all the Nestle products in Myanmar have been imported from other Asean countries until this year, but its factory plans to produce half of them next year.

“We will continue to import half of our products from different countries. Thailand is obviously our main supplier right now, but we are also importing from Vietnam, Malaysia and the Philippines,” he said.

In a bid to ensure deeper, wider distribution of its products throughout the nation, the firm has joined forces with Myanmar Distribution Group and other local partners since it formed a Yangon-based subsidiary in September 2013.

“We will focus on all channels so our products can reach everywhere. We have products for different age and socioeconomic groups in Myanmar. Both wholesale and retail shops play an important role in our distribution strategy,” he said.

Cobek said the firm aims to reach 80,000 retail shops across Myanmar soon. He also plans to launch a new product every two months, as his team has spent a couple of months designing products especially for Myanmar people.

“To develop a new product, it usually takes between 12 and 16 months. We have to do a lot of tests before the launch of a product to ensure high quality. The quality is non-negotiable for us. We never compromise on the quality of our products,” he said.

He said the firm would keep on innovating and launching new products, in addition to expanding its distribution network through different channels including its recently-launched Facebook page.

Currently, the firm has distributed six major brands in the market: Lactogen, Cerelac, Milo, Nescafe, Bear Brand and Maggi. He claimed that all the products were designed to enrich the quality of life and to contribute to the healthy future of Myanmar people of different ages, from birth to the elderly.

“Nestle has over 2,000 brands globally. Among them, we have chosen six to invest in Myanmar. We want our international quality products to reach everywhere at an affordable price,” he said.

Cobek is proud to say that most of the firm’s products are market leaders in Myanmar, except for Bear Brand enriched malted milk, which was launched two weeks ago, and Nescafe, which has to compete with over 50 coffee brands.

To him, Bear Brand is a localised innovation specially designed for Myanmar in which real milk is used to help Myanmar fight against iron deficiency. According to World Health Organisation, nearly half of adult women in Myanmar suffer from iron deficiency.

“We are on the top ranking in the [coffee] mix category where we are competing with local companies who are doing very well in terms of local taste. We are looking more into all categories,” he said.

“Instead of looking at the amount of market share which does not cover the whole of Myanmar, we are looking for the trends right now such as who is gaining, losing, etc. Globally, Nestle is the leader in coffee. Our ambition is to achieve the same position in Myanmar.”

He said sales volume should grow four times in four years, putting Nestle in the top three in Myanmar’s food and beverage business. To achieve this, the firm has invested US$25 million (Bt817 million) in Myanmar, and will continue to invest further.

He said the firm would prioritise three things – human resources, local manufacturing and branding. The workforce has grown threefold from 43 to 150 staff within one and a half years. Among them, only 10 are expatriates and the local employees’ average age is 29.

Though Cobek considers finding and recruiting skilled workers as a key challenge, he seems impressed by Myanmar people’s willingness to learn new skills.

“I have managed people from 35 different nationalities throughout my career. So I can really see the difference in Myanmar. The average learning ambition is very high and the energy is very impressive. We are investing in our people on that front,” he said.

Source: Eleven Weekly Media

Yangon is on the list of the world’s top cities that may soon become global financial capitals and havens for the super-rich

Yangon is on the list of the world’s top cities that may soon become global financial capitals and havens for the super-rich, global real estate consultancy Knight Frank predicts in its annual

Belgrade, Panama City, Addis Ababa and Yangon are listed as cities that with their emerging markets and regional influence have a “bright future,” according to the report.
Yangon is said to have grown in importance as a magnet for foreign investment since Myanmar began opening up in 2011.

The report lists the world’s most important cities. Top of the list in 2015 are London, New York, Hong Kong, Singapore and Shanghai.

The Wealth Report covers the property market and global development trends that help shape the investment strategies of wealthy individuals around the world.

Source: Mizzima

Top 10 predictions for Myanmar property sector in 2018: Colliers

Yangon is expected to experience growth in the office market this year. Thiri Lu/The Myanmar Times

The year 2017 elicited mixed market opinions while this year is expected to experience growth in the office market and industrial market, a real estate research firm suggested.

Yangon, coming from a low supply base, remains in a nascent stage of property development, and that fluctuation in rates is a commonplace occurrence, according to Tony Picon, director of Colliers International Myanmar.

In fact, despite headwinds, we have seen continuous growth in the office market as rental levels become competitive. The year also ended with healthy occupancy rates for the retail and serviced apartment sectors.

"We predict this trend to continue in 2018 especially with the industrial market being more bullish.

“Speedy reforms and further economic liberalisation will be fundamental, eventually driving the real estate sector into new heights,” Mr Picon explained.

Colliers International Myanmar has outlined their 10 predictions for Myanmar’s property sector for this calendar year.

1. Retail entertainment will become more prominent

The success of modern retail establishments will drive competitors to adopt more unique offerings. Other than the integration of entertainment features and family-oriented recreational activities, Colliers International recommends developers to capture a wider consumer base through tenancy-mix variation. For instance, by integrating health and wellness tenants such as fitness centres, spas, outpatient clinics and other healthcare-related services in their establishments.

2. Banks gaining more confidence with housing mortgages

More condominium developers will secure bank partnerships this year. Protective measures, such as buyer’s legal security under the new condominium rules, will entice banks to diversify their housing mortgage programs. Colliers suggests that banks should offer more reasonable mortgage terms and partner with lower-tier developments in addition to high-end projects.

3. Industrial sector as a star performer

Increasing labour costs in competing countries such as China, Vietnam and other ASEAN neighbours along with the lifting of US sanctions will prompt a return of the garment industry back to the country. Fast Moving Consumer Goods (FMCG) industry and logistics companies will take a fresh look at the country banking on its geographical and demographic potential. While we understand that infrastructure may remain inadequate in the near to medium term, we continually urge industrial developers to focus on improving land development as well as provisions for generators for redundancy purposes.

4. Emergence of smaller serviced apartments for lease

With relatively reasonable rents along with basic but functional features, limited and lower-tier serviced apartments will gain further traction despite being smaller in scale. Growth in apartments dedicated purely for lease are likely, more so with the relative absence of competition from small condominium units for rent. Additionally, limited supply in the medium term provides a window of opportunity for many developers.

5. Downward correction on residential rental yields

Residential rents are seen to continually correct downwards. This will drive capital rates to settle within the high single digit range compared to the 18-22 percent recorded in the past three to four years.

Yields will however remain competitive regionally. We advise investors to be cautious with their selection process and aim for products and locations with high rental potential.

6. Resurfacing interest in Mandalay city, the northern powerhouse

As the hub of the country’s heartland and the last royal capital, Mandalay is Myanmar’s northern powerhouse. With mixed-use development seen to be an attractive concept in Mandalay city, other developers are likely to jump on the bandwagon. Big-ticket projects may soon be revealed.

Colliers recommends developers to design satellite communities that offer an upgrade in terms of living quality. Products should be geared towards exclusive landed residences. This should be reinforced with a destination retail to create critical mass.

7. Competitive office rental environment to persist

More tenants will upgrade their office environment, and relocation towards better office spaces will become more evident. The research firm predicts rents to remain competitive amid the decline in new supply this year.

Further clarity in economic policies and quicker reforms will create an impetus for new market entrants as well as for business expansion. Colliers advises landlords to keep lease terms favourable as well as appropriate rental offerings in line with their building quality.

8. Interest towards basic grade apartments

Lower-tier but modern apartments and condominiums are likely to witness better sales performance. While construction delay for larger scale projects is problematic, buyers are likely to gain more confidence towards basic but modern developments, smaller in size and priced more reasonably.

Full enactment of the condominium law may elicit demand this year but affordability will remain an issue. Colliers urges developers to be crucial with site selection - ideally in alternative and accessible development sites in the immediate outskirts of Yangon. With these areas of appropriately priced land, devising offerings for mid-tier satellite communities ought to be a viable strategy.

9. Preferences to skew towards modern upper-scale hotels

Modern upper-scale hotels to gain preference over its outdated counterparts; with features such as better quality amenities and facilities that enhance the overall experiential value having a greater appeal to guests. These features will also allow operators to widen their market outside business and leisure foreign travellers, and tap into the domestic market for functions, corporate seminars, special occasions, events etc.

10. Developers eye southern Myanmar for resort destinations

More developers will head to Myeik islands and explore commercial possibilities for resort and leisure developments. With more than 800 undeveloped pristine islands, the region is in fact a strong draw for luxury travellers. Infrastructure may initially be a challenge, and generators although costly will be necessary. Kawthaung will similarly be an attractive jump off point with hotels offering excursion trips to the nearby islands.

Yangon-Mandalay train journey will shorten to 8 hours by 2023

Japan has thrown its weight behind Myanmar’s railway development by funding the Yangon-Mandalay railway, according to the country’s foreign minister Taro Kono who held a joint press conference in the capital with State Counsellor Daw Aung San Suu Kyi on January 12.

The new diesel electric trains bought from China for the Yangon-Mandalay express debuted in 2016. Photo: Aung Htay Hlaing/The Myanmar Times

The railroad upgrade programme is expected to cut travel time between Yangon and Taungoo to 3.5 hours and the overall Yangon-Mandalay one-way journey to eight hours. The Yangon- Taungoo part is scheduled to complete in 2020

Taungoo is a town in Bago Region between the capital and Yangon.“By 2023, the travel time between Yangon and Mandalay will be eight hours, and this will help the people’s travels as well as easing and speeding up trade,” Taro Kono commented.

The railway connecting Yangon and Mandalay stretches over 380 miles and is a popular route for travellers. Commuters need at least 12 hours to go from one city to another, and the time can go up to 15 hours due to the deterioration in the physical infrastructure.

ODA funded

The project will be funded by an Official Development Assistance (ODA) loan from Tokyo. ODA is broadly divided into bilateral aid, in which assistance is given directly to developing countries, and multilateral aid, which is provided through international organisations.

There are three phases for the scheme. The first priority is to build the Yangon-Taungoo line, covering 166 miles; then Taungoo-Yamaethin will be constructed, spanning 118.5 miles, followed by 100 miles between Yamethin-Mandalay.

“The upgrade programme for the Yangon-Mandalay railway is in progress and the progress is on-going. We signed the agreement for a loan in 2014. But the implementation has been slow. The programme includes a lot of work, such as adding stone to the railroad and upgrading it,” general manager U Htun Aung Thin from Myanma Railways said.

For the Yangon-Mandalay railway, over 3,000 passengers take the train on a daily basis. Hence, Myanma Railways is seeking to revamp the route and shorten the time to eight hours after the upgrade.

The revamp will involve a lot of other work, such as the signalling, the traffic lights guiding the roads which intersect the railway as well as the gates guiding the traffic flow.

“Since two years ago, Japan has set a policy of public-private partnership [PPP] assistance totalling 800 billion yen along a five-year period in order to support peace and reconciliation among the people in Myanmar, which will enable democracy to take root and economy to develop.

“Special assistance will be provided for Yangon’s urban development, transport improvement, power supply, Yangon-Mandalay upgrade programmes which will raise the living standard of the Myanmar people,” Mr Kono explained.

“Now Myanma Railways is already implementing the work for the upgrade and the Japanese are also in preparation for the ongoing project,” U Htun Aung Thin added.

In 2016, Myanma Railways yesterday launched its new Yangon-Mandalay service with diesel electric locomotives and carriages bought from China. The 2000-horsepower locomotives, currently the most powerful in Myanmar, were made by China’s CSR Sifang. The total cost of the contract was put at 11.3 million euros (US$12.3 million).

But that does not shorten the time of travel, which could only be achieved by upgrading the railways with the help from the Japan International Cooperation Agency (JICA).

The Japanese government, through JICA, will upgrade the infrastructure. Myanma Railways would be responsible for upgrading the track and tendering the existing 38 stations for redevelopment.