https://en.wikipedia.org/wiki/Category:Conglomerate_companies_of_Myanmar

Conglomerate companies of Myanmar C

Comin Asia

D

Dagon International

H

Htoo Group of Companies

I

IGE Group of Companies

K

Kanbawza Group of Companies

M

Max Myanmar

Myanmar Economic Corporation

P

Peace Myanmar Group

S

Serge Pun & Associates

Shwe Taung Group

Shwe Thanlwin

U

Union of Myanmar Economic Holdings

Y

Young Investment Group

Yuzana Company

Z

Zaykabar Company

Comin Asia Comin Asia is an engineering company and general contractor based

in Cambodia, Vietnam, Thailand, Laos, and Myanmar. Comin participates in major

construction and improvement projects in Southeast Asia and the Mekong River area, including hotels, factories, infrastructure projects, power plants, network security and automation, and office buildings.

Myanmar:

Honey Garments Factory

Coca-Cola Pinya Beverages Myanmar

Dagon International

Dagon International

Type Conglomerate

Industry Construction, Import-Export, Agriculture

Founded 1990s

Founder Dagon Win Aung

Win Thein

Headquarters Sanchaung

Township, Yangon, Myanmar (Burma)

Key people Dagon Win Aung, CEO

Moe Mya Mya, Managing Director

Ei Hnin Pwint (Christabelle Aung)

Thurane Aung (Christopher Aung)

Ei Hnin Khin (Christina Aung)

Subsidiaries

Dagon Timber Limited

Website dagon-group.com

Dagon International Limited (Burmese: ဒဂ ုံအငတ်ာနေရှငေ်ယက်ုံမ္ပဏ)ီ is a major

Burmese conglomerate with interests in construction, timber extraction, agriculture and import-export. The company was founded by Dagon Win Aung and Win Thein in the early 1990s.[1]

Dagon International and its chief executive officer Win Aung have been placed on the American sanctions list since 2009, for its close ties with the Burmese military.

Update about Sanctions[edit]

The following deletions have been made to OFAC's SDN List as April 23, 2015.[4]

Management[edit]

Dagon International is headed by Dagon Win Aung.[5][5] His wife, Moe Mya Mya (also known as Yew Hoon See) serves as the company's managing director.[5] Their children Ei Hnin Pwint (Christabelle Aung), Thurane Aung (Christopher Aung) and Ei Hnin Khin (Christina Aung) also serve as company directors.[5]

Projects[edit]

Dagon International's real estate portfolio includes:

Dagon Centre

Dagon Centre II

Grand Golden View Condominiums

Palm Beach Resort, Ngwesaung Beach

The Oasis Hotel (Nay Pyi Taw)

Thurein Yeik Mon Housing Development

In 2003, the company opened a major retail shopping centre, Dagon Centre at the Myaynigone junction in Yangon's Sanchaung Township.[6] In December 2011, it opened Dagon Centre II, a six story shopping complex containing 60 shops and a theater.[7]

The company also upgraded and extended the national highway from Rangoon to Mandalay.[8]

Controversies[edit]

Through the Dagon Win Aung's ties to the military, the company gained exclusive logging rights to harvest timber from Myanmar's protected forest reserves.[9]

References[edit]

1. Jump up^ "Tracking the Tycoons". The Irrawaddy. September 2008. Retrieved 28 October 2012.

2. Jump up^ McCartan, Brian (26 August 2009). "On the march to do business in Myanmar". Asia Times. Retrieved 28 October 2012.

3. Jump up^ Lalit K. Jha (16 January 2009). "Bush Slaps Sanctions on More Junta Cronies". The Irrawaddy. Retrieved 28 October 2012.

4. Jump up^ "Burma Designation Removals".

5. ^ Jump up to:a b c d "Win Aung - A Rising Crony With Connections". WikiLeaks cable: 07RANGOON1203. US Embassy at Rangoon. 26 December 2007. Retrieved 28 October 2012.

6. Jump up^ Noe Noe Aung (12 December 2011). "Despite new competition, old retail centres retain customer interest". Myanmar Times. Retrieved 28 October 2012.[permanent dead link]

7. Jump up^ Noe Noe Aung (26 December 2011). "Dagon Center II open for business: manager". Myanmar Times. Retrieved 28 October 2012.

8. Jump up^ Wai Moe (5 November 2007). "Dagon Win Aung: The Importance of Being Well-Connected". The Irrawaddy. Retrieved 28 October 2012.

9. Jump up^ Slodkowski, Antoni (8 October 2012). "How Japan Inc stole a march on competitors to enter Myanmar". Myanmar Times. Retrieved 28 October 2012.

Htoo Group of Companies From Wikipedia, the free encyclopedia

Htoo Group of Companies

Headquarters 5 Pyay Road, Hlaing

Township, Yangon, Myanmar

Key people Tay Za, Chairman and Founder

Thiha, Vice Chairman

Pye Phyo Tay Za, Managing Director

Revenue USD $65.1 million

Number of

employees

40,000[1]

Subsidiaries

Air Bagan Holdings Company Ltd.

Htoo Wood Products Company Ltd

Htoo Trading Company

Ayer Shwe Wah Company Ltd.

Myanmar Avia Export Company Ltd.

Myanmar Treasure Resorts

Pavo Aircraft Leasing Company Ltd.

Pavo Trading Company Ltd.

Website www.htoo.com

The Htoo Group of Companies (HGC) is a Burmese holding company, with headquarters at 5 Pyay Road, Hlaing Township, Yangon, Myanmar. HGC is the parent company of Air Bagan, a privately held Burmese airline company. The company has several subsidiaries. Htoo Wood Products Company Ltd. is engaged in logging and export of timber (especially teak). Htoo Trading Company, is engaged in construction, property development, agriculture, transportation, shipping, mining, hotels and tourism operations. Htoo Trading Company and Asia World Company were the first two construction companies granted contracts to build the new national capital in Naypyidaw. Htoo Trading Company is Burma's top private exporter and fifth largest overall, with gross revenues of $65.1 million.

History[edit]

The forerunner of HGC was Htoo Company, established in 1958, by U Zaw Nyunt and Daw Htoo, the parents of Thida Zaw, Tay Za's wife.[3]After the coup d'état by Ne Win's Burma Socialist

Programme Party in 1962, Htoo Company was nationalized. However, its rice mills and saw mills continued to operate as a family business.[4]

Htoo Trading Company was established in 1990, soon after the 1988 coup d'état led by General Saw Maung. At that time, the company was engaged in logging and timber exports in addition to its core rice milling and saw milling business. The company gradually gained access to large areas of virgin forest near the Burma-Thailand border.[5] Htoo Trading Company was later reorganized into the Htoo Group of Companies (HGC) as a result of diversification into other business sectors, reinvestment and expansion.

Leadership[edit]

Tay Za (born 1964) is the Founder and Chairman of HTOO Group of Companies.[6] He became involved in the family business in Gyobingauk, a few miles south of Pyay in 1984.[4] He is a close associate of General Than Shwe, chairman of the State Peace and Development Council (SPDC) and Commander-in-Chief of the Myanmar Armed Forces. Tay Za is also quite close to General Thura Shwe Mann, who he has known since the general was regional commander in the Irrawaddy delta. General Shwe Mann is Chief of Staff of the Myanmar Armed Forces and the third-highest-ranking member of the SPDC, after Than Shwe and Maung Aye (vice-chairman of the SPDC and Deputy Commander in Chief of the Myanmar Armed Forces). Tay Za consolidated his relationship with the junta by creating Myanmar Avia Export, Burma’s sole representative of Russia’s Export Military Industrial Group, (MAPO), and of the Russian helicopter company Rostvertol. Tay Za was instrumental in the junta’s purchase of ten MiG-29 fighter aircraft for US$130 million.[5][6][7]

Thiha (born 1960), elder brother of Tay Za is the Vice Chairman of HTOO Group of Companies.

Pye Phyo Tay Za, eldest son of Tay Za is the Managing Director of HTOO Group of Companies.

Kyaw Thein (born 1947) manages Tay Za's business offices in Singapore. He currently serves as a director for Air Bagan Holdings Company Ltd, Htoo Wood Products Company Ltd, Pavo Aircraft Leasing Co Ltd and Pavo Trading Co Ltd.

Subsidiaries[edit]

Subsidiaries of HTOO Group of Companies include

Aureum Palace Hotels & Resorts

Air Bagan Holdings Company Ltd.

APEX Petroleum Co., Ltd.

Asia Green Development Bank

Bagan Entertainment

First National Insurance Co., Ltd.

FM Bagan

HTOO Construction Development Group

HTOO Trading Company

HTOO Wood Products Company Ltd.

HTOO Zoos and Gardens

Mingalardon Cargo Services

Myanmar Avia Export Company Ltd.: exclusive representative in Burma for Russia’s Export Military Industrial Group (MAPO), and the Russian helicopter company Rostvertol; supplies the Burmese military with spare parts for its aircraft.

Myanmar Treasure Resorts

Pavo Aircraft Leasing Company Ltd.

Pavo Trading Company Ltd.

Asian Wings Airways

Air Myanmar Aviation Services(AMAS) Company Ltd.

Yangon Airport Group(YAG) Company Ltd.

Yangon United Football Club

Elite Tech[8]

Sanctions[edit]

On October 18, 2007, the Office of Foreign Assets Control (OFAC) of the United States Department of the Treasury imposed financial sanctions against Tay Za, his wife Thidar Zaw, his eldest son Pyae Phyo Tay Za, and five of the companies controlled by Tay Za, including Htoo Trading Company and Air Bagan.[9] The sanctions were instituted in response to protests against the junta on the streets of many cities in Burma in September 2007.[10]

On 5 February 2008, those sanctions were expanded to include some of Tay Za's partners, including Aung Thet Mann, Thiha and U Kyaw Thein, as well as HGC itself. Also named in the new sanctions order were Khin Lay Thet, wife of General Thura Shwe Mann, Myint Myint Ko, wife of Construction Minister Mon Saw Tun, Tin Lin Myint, wife of Lieutenant General Ye Myint, the head of Military Affairs Security, and Myint Myint Soe, wife of Minister of Foreign Affairs Nyan Win.[11]

The sanctions were expanded pursuant to Executive Order 13448, which authorizes the United States Secretary of the Treasury to designate senior regime officials, human rights violators in Burma, persons engaged in public corruption in Burma, financial and material supporters of the Government of Burma, and spouses and dependent children of previously designated individuals. The designation freezes any assets the designees may have subject to U.S. jurisdiction, and prohibits all financial and commercial transactions by any U.S. person with the designated companies and individuals.[11]

The business being related to the government of Myanmar, since 2008 it is also subject to European Union sanctions which include seizing corporate and personal assets.[12]

On 7 October 2016, the United States Department of the Treasury implemented termination of the Burma Sanctions Program[13] in accordance with the Executive Order issued on the same date by the U.S President Barack Obama,[14] which effectively removed Tay Za, along with other Business Tycoons from OFAC's Specially Designated Nationals list, effectively removing HTOO Group of Companies and its subsidiaries off the previously imposed sanctions.

References[edit]

1. Jump up^ "How sanctions made Burma's richest man". Financial Times. 12 August 2011. Retrieved 12 August 2011.

2. Jump up^ Ye Lwin and Kyaw Thu (4–10 June 2007). "Govt dominates foreign trade as gas sales pump up exports". The Myanmar Times.

3. Jump up^ Montlake, Simon (28 September 2011). "Burma's Showy Crony". Forbes. Retrieved 10 April 2012.

4. ^ Jump up to:a b Tay Za: Keynote Speech on Third Anniversary of Air Bagan

5. ^ Jump up to:a b Wai Moe (23 October 2007). "Tay Za Grounded". The Irrawaddy.

6. ^ Jump up to:a b The Irrawaddy (September 2008). "Tracking the Tycoons". The Irrawaddy.

7. Jump up^ Peter Beaumont and Alex Duval Smith (7 October 2007). "Drugs and astrology: how 'Bulldog' wields power". The Guardian.

8. Jump up^ "No plan to cut SIM card prices, says govt". Weekly Eleven. 25 September 2012. Retrieved 3 October 2012.

9. Jump up^ Executive Order 13448: Blocking Property and Prohibiting Certain Transactions Related to Burma, 18 October 2007.

10. Jump up^ Brian McCartan (21 February 2008). "Smart sanctions target Myanmar tycoon". Asia Times Online.

11. ^ Jump up to:a b "HP-807: Treasury Action Targets Financial Network of Burmese Tycoon and Regime Henchman Tay Za". US Department of Treasury. 5 February 2008.

12. Jump up^ COMMISSION REGULATION (EU) No 411/2010 of 10 May 2010 amending Council Regulation (EC) No 194/2008 renewing and strengthening the restrictive measures in respect of Burma/Myanmar, Official Journal of the European Union

13. Jump up^ "TREASURY IMPLEMENTS TERMINATION OF BURMA SANCTIONS PROGRAM" (PDF). 7 October 2016. Retrieved 16 October 2016.

14. Jump up^ "TERMINATION OF EMERGENCY WITH RESPECT TO THE ACTIONS AND POLICIES OF THE GOVERNMENT OF BURMA" (PDF). 7 October 2016. Retrieved 16 October 2016.

IGE Group of Companies From Wikipedia, the free encyclopedia

IGE Group of Companies

Native name အ ုံငဂ် ီအီီး ကုံမ္ပဏအီုံပ်စုံ

Type Limited company

Industry Timber, Oil & Gas, Electricity,

Banking, Hotels, Telecommunications,

Construction

Founded 1994

Headquarters Yangon, Myanmar

Owner Nay Aung

Pyi Aung

Number of

employees

3,000

Subsidiaries

Aung Yee Phyo Company

UNOG Company

United Amara Bank

IGE Group of Companies (Burmese: အ ုံငဂ် ီအီီး ကုံမ္ပဏအီုံပ်စုံ) is one of Myanmar's 5 largest

conglomerates, possessing 8 subsidiaries that employ 3,000 people.[1] IGE also possesses Myanmar's second largest timber trading company.[2] It also exports Burmese rice.[2] IGE Group of Companies was established in 1994 in Burma, and registered in Singapore in 2001.[2] The company is also active in the country's oil and gas sector.[2] In 2007, IGE earned over US$75 million in revenues.[1] The company was previously subjected to economic sanctions by the United States government, because of its ties to the State Peace and Development Council, the former military junta.[3]

It is owned by Nay Aung, the son of Aung Thaung, a politician and former military general.[4]

Subsidiaries[edit]

Aung Yee Phyo Company

The Amara Hotel

Grand Amara Hotel

FCGC Co.,Ltd

Amara Communications

UNOG Trading[5]

United National Oil & Gas Co., Ltd. (UNOG)[6]

United Amara Bank[7]

References[edit]

1. ^ Jump up to:a b Aung Min; Toshihiro Kudo (2014). "Business Conglomerates in the Context of Myanmar's Economic Reform" (PDF). Myanmar's Integration with Global Economy: Outlook and Opportunities. Bangkok Research Report. Retrieved 11 July 2015.

2. ^ Jump up to:a b c d "BURMA: INDUSTRY MINISTER'S FAMILY BENEFITS FROM CONNECTIONS". Embassy of the United States, Rangoon. Retrieved 11 July 2015.

3. Jump up^ Schectman, Joel (31 October 2014). "New Blacklisting Shows Myanmar Business Perilous". Wall Street Journal. Archived from the original on November 8, 2014. Retrieved 11 July 2015.

4. Jump up^ "Tracking the Tycoons". The Irrawaddy. September 2008. Retrieved 11 July 2015.

5. Jump up^ "The Myanmar Times Bank Survey 2014". Myanmar Times. 15 July 2014. Retrieved 11 July 2015.

6. Jump up^ WEB

7. Jump up^ "The Myanmar Times Bank Survey 2014". Myanmar Times. 15 July 2014. Retrieved 11 July 2015.

Kanbawza Group of Companies From Wikipedia, the free encyclopedia

Kanbawza Group of Companies

Native name ကနမ္ဘာဇကုံမ္ပဏအီုံပ်စုံ

Industry Construction, garments, insurance,

banking, oil, communications, cement,

aviation and mining

Founded 1994

Headquarters Yangon, Myanmar

Owner Aung Ko Win

Subsidiaries

Air KBZ

Myanmar Airways International

Kanbawza Bank

IKBZ Insurance Company[1]

Website www.kbzgroup.com.mm

The Kanbawza Group of Companies (Burmese: ကနမ္ဘာဇကုံမ္ပဏအီုံပ်စုံ) is a major Myanmar-based

conglomerates, possessing 11 subsidiaries across industries such as construction, garments, insurance, banking, oil, communications, cement, aviation and mining.[1]

Kanbawza Group is owned by Aung Ko Win (also known as Saya Kyaung), a former schoolteacher with close connections to General Maung Aye, the second in command of the former military junta, the State Peace and Development Council (SPDC).[1] He is married to Nan Than Htwe, the niece of Win Myint, a former SPDC official.[1]

Subsidiaries[edit]

Air KBZ[1]

Myanmar Airways International[1]

Kanbawza Bank[1]

IKBZ Insurance Company[1]

References[edit]

1. ^ Jump up to:a b c d e f g h Aung Min; Toshihiro Kudo (2014). "Business Conglomerates in the Context of Myanmar's Economic Reform"(PDF). Myanmar's Integration with Global Economy: Outlook and Opportunities. Bangkok Research Report. Retrieved 11 July 2015

Max Myanmar From Wikipedia, the free encyclopedia

Max Myanmar Group of Companies

Native name မ္က်စမ်မ္ေမ်္ာကုံမ္ပဏအီုံပ်စုံ

Industry Conglomerate

Predecessor Max Myanmar’s Trading Company

Founded 1993

Founder Zaw Zaw

Headquarters Yangon, Myanmar

Key people Zaw Zaw

Products Cement and rubbers

Services Banking, Hotel, Construction,

Manufacturing, Petroleum, Gems and

jewellery, Trading, Services

Subsidiaries

Ayeyarwady Bank

Website www.maxmyanmargroup.com

Max Myanmar Group of Companies (Burmese: မ္က်စမ်မ္ေမ်္ာကုံမ္ပဏအီုံပ်စုံ) is a Burmese company,

known for its ties to the Burmese military[1]owned by a local tycoon, Zaw Zaw.[2]

Contents

[hide]

1History

2Portfolio

3Controversy

4References

History[edit]

The Max Myanmar Group of Companies was originally established as Max Myanmar Co., Ltd. in 1993. It started operation by importing buses from Japan, simultaneously followed by import of generators and earth-moving equipment and machinery. The company has since diversified its portfolio through connections to military officials, to include not only import-export, but also construction, hospitality and tourism, manufacturing, banking services and gems mining.[3] Through an aggressive growth strategy, the Company steadily expanded and diversified into the fields of civil construction, mechanical engineering, transportation, hotel, rubber plantations and banking industry.[4]

Portfolio[edit]

The company was involved in the construction of Naypyidaw, Burma's new capital. It built and operates Royal Kumudra Hotel.[1] Max Myanmar also constructed Zabudipa Stadium for the 2013 Southeast Asian Games, to be held in Naypyidaw.[5]

Max Myanmar is also involved in a $120 million USD infrastructure project, the Kaladan Multi-Modal Transit Transport Project, with Essar Group, an Indian firm.[6] The project will link the landlocked Indian state of Mizoram to Sittwe in Burma's Rakhine State and allow cargo vessels to travel along the Kaladan River.[6]

On 23 March 2008, Max Myanmar launched Nay Pyi Taw Taxi and Car Rental Service, a metered taxi service, to Naypyidaw.[7]

In 2010, Max Myanmar acquired a 60% share (worth K 5 billion) in the development of Pyay Towers (a high-rise complex that will include a shopping center, offices and apartments).[8]

In August 2010, Max Myanmar opened its private bank, Ayeyarwady Bank, with nationwide branches, after receiving a banking operation license from the Central Bank of Myanmar.[9]

On 13 March 2011, 550 bedded Yankin Children's Hospital, which Max Myanmar redeveloped, equipped and furnished a former Ministry of Mining building at a cost of K9 billion (US$10 million), opened to help ease the strain on the city’s other paediatric facility.[10]

In April 2011, Max Myanmar won a government auction bid to buy the Department of Population office in Yangon's Kyauktada Township, at the cost of K15 billion.[11]

On 4 January 2012, the company opened Ayeyarwady Hotel, the first hotel at Naypyidaw's National Landmark Garden.[12] The 15 acres (6.1 ha) complex was built at a cost of $35 million USD.[12] On 22 January 2011, Max Myanmar signed a production-sharing contract with the Burmese Ministry of Mines to produce coal at a 5,200 acres (2,100 ha) plot in Sagaing Region's Kalewa Township.[13]

In July 2012, a struggling Singaporean bed linen maker Aussino Group proposed a $47.38 million USD reverse takeover by Max Myanmar.[14] In this deal, Aussino would issue shares to buy a new firm called Max Strategic Investments (MSI), to provide capital of Max Myanmar to operate petrol stations in Burma and give Max Myanmar majority control of the Singaporean firm.[14]Max Myanmar currently operates 21 petrol stations in Burma.[15] In the 2011-2012 fiscal year, MSI had a reported consolidated revenue of $75 million USD.[16] They also involved in cement industry this year.

In July 2012, Zaw Zaw announced that Max Myanmar would be withdrawing from its involvement (and $2 million USD of shares) in a massive $50 billion USD project to construct a special economic zone (with a port and industrial complex) in Dawei.[17][18]

In December 2012,Max Myanmar Company has paid 13 local land owners more than 700 million kyats (US$806,000) in compensation for the acquirement of farmlands in Ngwehsaung Sub-township, Ayeyawady Region. The company paid a total of 728.5 million kyats (US$838,400) for 106 acres of land and it was the first time such compensation has been paid to landowners and it is the largest amount paid ever, according to locals, and the farmers were pleased. [19]

In 2013, acquired a majority 60-per cent stake in the Pyay Towers project for US$ 5.8 million, one of Yangon's most prominent property developments. [20]

Max Myanmar responded to the land-grab problems happening in the country in 2013 as Zaw Zaw pledged to return unused land that had been acquired through the government. [21]

Controversy[edit]

This article's Criticism or Controversy section may compromise the

article's neutral point of view of the subject. Please integrate the section's

contents into the article as a whole, or rewrite the material. (September

2013)

In 2004, Max Myanmar was involved in the illegal confiscation of 5,000 acres (2,000 ha) of land in Mon and Kayin States to plant rubber plantations.[22] The rubber plantation, located in Bilin Township, is joint venture between Max Myanmar and a military-owned company.[23]

On 23 September 2009, Delta United FC (now Ayeyawady United F.C.), owned by Max Cement (a subsidiary of Max Myanmar), was involved in a controversial win against Yadanabon F.C., whose fans accused Zaw Zaw of unfairly influencing the referee during the match.[24] On 28 September, Zaw Zaw transferred ownership of the football club to Premier Coffee, citing a conflict of interest, as he also serves as the chairman of the Myanmar Football Federation.[24][25]

In April 2010, Max Myanmar Construction constructed a 500 feet (150 m)-long Thingyan pandal (water pavilion) for Nay Shwe Thway Aung, the grandson of Than Shwe by the shores of Yangon's Inya Lake, despite city regulations that limit the length of pavilions to less than 140 feet (43 m).[26]

Max Myanmar has been known to dump earth from its jade mines into the Uru and Nanmayang streams in Kachin State.[27]

As of 2012, Max Myanmar has also been involved in land seizures in Dagon Seikkan Township, forcing it to implement a mutual profit-sharing system with farmers.[28]

References[edit]

1. ^ Jump up to:a b Brunn, Stanley D. (2011). Engineering Earth: The Impacts of Megaengineering Projects. Springer. pp. 1029–1030. ISBN 9789048199198.

2. Jump up^ "Corporate Structure". Max Myanmar Group of Companies. Retrieved 15 November 2013.

3. Jump up^ "Our Company". Max Myanmar Group of Companies. Retrieved 3 October 2012.

4. Jump up^ "MAX MYANMAR GROUP OF COMPANIES". Max Myanmar Group of Companies. Retrieved 15 November 2013.

5. Jump up^ "Sports stadiums 85% completed for 27th SEA Games". Weekly Eleven. 14 August 2012. Retrieved 3 October 2012.

6. ^ Jump up to:a b Thein, Cherry (5 December 2011). "Kaladan transport project in spotlight". Myanmar Times. Retrieved 3 October 2012.

7. Jump up^ Thein Lin (31 March 2008). "Metered taxis come to Nay Pyi Taw". Myanmar Times. Retrieved 3 October 2012.

8. Jump up^ Kyaw Hsu Mon (2011). "NDCG hands Pyay Towers over to Max Myanmar". Myanmar Times. Retrieved 3 October 2012.

9. Jump up^ Phyo Wai Kyaw; Su Hlaing Tun (16 August 2010). "Ayeyarwady Bank opens". Myanmar Times. Retrieved 3 October 2012.

10. Jump up^ Cherry Thein (21 March 2011). "Children's hospital opens in Yankin". Myanmar Times. Retrieved 4 April 2012.

11. Jump up^ "Govt property auction nets K800b". Myanmar Times. 4 April 2011. Retrieved 3 October 2012.

12. ^ Jump up to:a b Han Oo Khin (17 January 2011). "K30 bn hotel opens in capital". Myanmar Times. Retrieved 3 October 2012.

13. Jump up^ Shwe Gaung, Juliet (31 January 2011). "Sagaing coal deals inked". Myanmar Times. Retrieved 3 October 2012.

14. ^ Jump up to:a b "Max Myanmar bids for Aussino". Myanmar Times. 9 July 2012. Retrieved 3 October 2012.

15. Jump up^ Sim Ping Khuan, 25 July 2012. "Max Myanmar Group proposes S$70m reverse takeover of Aussino". Channel News Asia. Retrieved 3 October 2012.

16. Jump up^ "Aussino Group to acquire Max Myanmar's petrol kiosk business for $70m". The Edge. 25 July 2012. Retrieved 3 October 2012.

17. Jump up^ Pisit Changplayngam (6 July 2012). "Italian-Thai seeks investors to replace Max Myanmar in Dawei". Reuters. Retrieved 3 October 2012.

18. Jump up^ "Local companies to replace Max Myanmar in Dawei Special Economic Zone". Weekly Eleven. 15 September 2012. Retrieved 3 October 2012.

19. Jump up^ "Max Myanmar Company pays $806k in compensation for seized land". weekly eleven. 2012-12-11. Retrieved 2013-03-25.

20. Jump up^ "Five-star hotel going up in Yangon". Investvine.com. 2013-02-15. Retrieved 2013-02-16.

21. Jump up^ "Myanmar's land grab problem". Bangkok Post. 2013-08-26. Retrieved 2013-08-31.

22. Jump up^ "PHOTO SET 2005-A: Food and Livelihoods". Karen Human Rights Group. 27 May 2005.

23. Jump up^ "Widespread Militarization and the Systematic Use of Forced Labour in the Campaign for Control of Thaton District". Surviving in Shadow. Karen Human Rights Group. 17 January 2006.

24. ^ Jump up to:a b Han Oo Khin (5 October 2009). "MFF chief relinquishes Delta United". Myanmar Times. Retrieved 3 October 2012.

25. Jump up^ Kyaw Kha (2 October 2009). "Mysterious transfer of soccer club". Mizzima. Retrieved 3 October 2012.

26. Jump up^ Min Thet (6 April 2010). "Crony builds massive marquee for Than Shwe kin". Mizzima. Retrieved 3 October 2012.

27. Jump up^ Myint Maung (23 July 2010). "Floods wash away homes in Phakant". Mizzima. Retrieved 3 October 2012.

28. Jump up^ "Agri firm eyes alternative farming systems". Weekly Eleven. 23 August 2012. Retrieved 3 October 2012.

Myanmar Economic Corporation From Wikipedia, the free encyclopedia

Myanmar Economic Corporation

Native name မမ္ေမ်္ာာ့စီီးပ ီးန ီး နကာ်ပ ုံန ီးရှငီ်း

Industry Conglomerate

Founded February 1997

Founder Ministry of Defence (Burma)

Headquarters Yangon, Myanmar

Subsidiaries

Innwa Bank

The Myanmar Economic Corporation (Burmese: မမ္ေမ်္ာာ့စီီးပ ီးန ီး နကာ်ပ ုံန ီးရှငီ်း; abbreviated MEC) is

one of the two major conglomerates and holding companies operated by the Burmese military. Founded in 1997 to establish profitable heavy industries that can provide the Burmese military access to supplies of important materials (e.g. cement and rubber), MEC's operations are shrouded in secrecy.[1] In 2009, MEC had 21 factories, including 4 steel plants, a bank, a cement plant and an insurance monopoly.[2] Its headquarters are located on Ahlon Road in Yangon's Ahlon Township.[3] MEC has remained on the United States' list of sanctioned companies due to its affiliation to the Burmese military.[4] MEC also operates Innwa Bank, one of Burma's few banking chains.[5]

MEC is operated under the Ministry of Defence's Directorate of Defence Procurement (DPP), with its private shares exclusively owned by active-duty military personnel.[6] The corporation's capital was established through revenues generated from the public auctioning of state-owned enterprises throughout the 1990s.[7] Through joint ventures with foreign companies and mergers with smaller companies, MEC has positioned itself as one of Burma's largest corporations.[7] In 2000, MEC launched Cybermec Information Technology Center, an IT venture.[8]

Along with Union of Myanmar Economic Holdings (UMEHL), MEC is widely observed to generate most of the Burmese military's operating revenue, which are not held accountable to the Burmese parliament, the Pyidaungsu Hluttaw.[9] The former Vice-President of Burma, Tin Aung Myint Oo, is a former Myanmar Economic Corporation chairman.[10]

References[edit]

1. Jump up^ "Myanmar: The Politics of Economic Reform"(PDF). Asia Report N° 231. International Crisis Group. 27 July 2012.

2. Jump up^ Steinberg, David I. (2009). Burma/Myanmar: What Everyone Needs to Know. Oxford University Press. ISBN 9780195390681.

3. Jump up^ "MYANMAR ECONOMIC CORPORATION". Excluded Parties List System. U.S. Government. Retrieved 30 September 2012.

4. Jump up^ Bruce, Victoria (16 July 2012). "Reporting rules for US firms revealed". Myanmar Times. Retrieved 3 October 2012.

5. Jump up^ "Administration Eases Financial and Investment Sanctions on Burma". HumanRights.gov. United States Government. 11 July 2012. Retrieved 3 October 2012.

6. Jump up^ Singh, Ravi Shekhar Narain (2005). Asian Strategic And Military Perspective. Lancer Publishers. p. 209. ISBN 9788170622451.

7. ^ Jump up to:a b Min Zin (August 2003). "Waiting for an Industrial Revolution". Irrawaddy. Retrieved 3 October 2012.

8. Jump up^ "Generals invest in IT". Business. The Irrawaddy. August 2000. Retrieved 3 October 2012.

9. Jump up^ "Junta stocking up on weapons for rainy day: observer". Mizzma. 24 December

2009. Retrieved 3 October 2012. |first1= missing |last1= in Authors list (help)

10. Jump up^ Heather, Victoria (3 October 2012). "VP pushed out over corruption, resistance to reforms". Democratic Voice of Burma. Retrieved 3 October 2012.

Peace Myanmar Group From Wikipedia, the free encyclopedia

Peace Myanmar Group Company (PMG)

Native name ပ (စ)်မမ္ေမ်္ာဂရုံ(ပ်)ကုံမ္ပဏ ီ

Type conglomerate company

Industry beverage

Founded 1993

Headquarters Yangon, Myanmar

Key people Tun Lin (MD)

Owner Yang Mao-liang

Subsidiaries

Peace Myanmar Electric Company

United Paints Group

United Can Factory

Skyward International Trade

Peace Company

Asia General Electric

Website www.pmgmyanmar.com

Peace Myanmar Group Company (Burmese: ပ (စ)်မမ္ေမ်္ာဂရုံ(ပ်)ကုံမ္ပဏ)ီ is a Myanmar-

based conglomerate company, including a major bottled drinking water and alcoholic beverage manufacturer.[1]

It was founded in July 1993 by Yang Mao-liang, a Kokang warlord and head of a rebel group, the Myanmar National Democratic Alliance Army (MNDAA).[1] The company is known for its alcohol brands, including Myanmar Rum, Myanmar Dry Gin, and Myanmar Whiskey.[1]

Money laundering

In 2007, it was investigated by the Burmese government for tax evasion.[2] The company is used to launder and reinvest MNDAA's drug profits in the legal economy.[3]

References[edit]

1. ^ Jump up to:a b c "Burmese Tycoons Part III". The Irrawaddy. August 2000. Retrieved 11 July 2015.

2. Jump up^ "Burmese Junta Cracks Down on Tax Evasion Cases". The Irrawaddy. 30 May 2007. Retrieved 11 July 2015.

3. Jump up^ A Failing Grade: Burma's Drug Eradication Efforts (PDF). Alternative ASEAN Network on Burma. 2004. ISBN 978-9749243343.

Serge Pun & Associates From Wikipedia, the free encyclopedia

Serge Pun & Associates

Founded 1983

Founder Serge Pun

Headquarters Yangon, Myanmar

Owner Serge Pun

Subsidiaries

First Myanmar Investment

Yoma Strategic Holdings

Yoma Bank

Serge Pun & Associates (also SPA Group) is a major Myanmar-based conglomerates, engaged in 8 core sectors with 25 subsidiaries, involved in automobiles, real estate, retail, luxury tourism,

agriculture and financial services.[1] Its flagship company, First Myanmar International (FMI), was established in 1992 as one of Myanmar's first publicly traded companies.

SPA Group was founded by Serge Pun, a Sino-Burmese, in Hong Kong in 1983 as an investment holding and operating company.[1] The company was registered in Myanmar in 1991.[1]

Subsidiaries[edit]

First Myanmar Investment[1]

Yoma Bank[1]

SPA Motors[1]

Successful Goal Trading[1]

Convenience Prosperity Company[1]

Yoma Yarza Manufacturing[1]

Pun Hlaing International Hospital[1]

Pun Hlaing International School[1]

References[edit]

1. ^ Jump up to:a b c d e f g h i j k Aung Min; Toshihiro Kudo (2014). "Business Conglomerates in the Context of Myanmar's Economic Reform" (PDF). Myanmar's Integration with Global Economy: Outlook and Opportunities. Bangkok Research Report. Retrieved 11

July 2015. Cite uses deprecated parameter |coauthors= (help)

Shwe Taung Group From Wikipedia, the free encyclopedia

Shwe Taung Group of Companies

Formerly

called

Olympic Construction Group

Type Private

Industry Conglomerate

Predecessor Olympic Construction Company

Founded 1990

Headquarters Myanmar

Key people Eike Htun (Chairman)

Aung Zaw Naing (Managing Director)

Products Real estate, Construction &

Engineering, Cement & Construction

Materials, Energy & Infrastructure,

Trading and Retail

Website www.shwetaunggroup.com

Shwe Taung Group of Companies (Burmese: န ွှေနတာငက်ုံမ္ပဏအီုံပ်စုံ; Shwe Taung Group) is a

Myanmar conglomerate. It has a large construction and engineering arm and is the parent company of a cement business in Myanmar. It also own Octagon International Service Trading which is the importer of machinery and construction vehicles. Shwe Taung Group was formerly known as Olympic Construction Company, and is renamed as Shwe Taung Group in 2004 after the banking scandal, money laundering accusation and drug links against the affiliated Asia Wealth Bank by the US department of Treasury and the bank's subsequent sanction in 2003 by the US Government and closure by the Government of Myanmar.[1][2][3]

Contents

[hide]

1Suspected money laundering and drug links

2Key figures

3See also

4References

5External links

Suspected money laundering and drug links[edit]

As recent as 2007, the US continue to suspect Shwe Taung Group (formerly Olympic Construction Group) of laundering drug money, as evident by the leaked US embassy cable exposed by wiki-leaks.[4] Law enforcement agencies continue to suspect Shwe Taung group chairman, Aik Htun, close ties to the drug traffickers and the "rich investors" behind Shwe Taung Group is questionable with some claiming Aik Htun is just a "front man" for various parties.[5][6]

Key figures[edit] For more details on this topic, see Eike Htun.

The Chairman of Shwe Taung Group is Aik Htun, also spelt Eike Htun, while his son, Aung Zaw Naing, is Managing Director.

(Burmese: အ ုံက်ထ ေီ်း IPA: [aiʔ tʰʊ́ɴ]; variously spelt Eik Tun, Eike Htun, and Aik Tun) is a prominent

Burmese businessman, best known as the managing director and vice chairman of the sister company of Olympic Construction company, the Asia Wealth Bank,[7][8] which was Burma's largest private bank until the banking crisis of 2003.[9] The US Secretary of Treasury also designated Asia

Wealth Bank as financial institutions of primary money laundering concern [2] and the department report notes that the Asia Wealth bank have been linked to narcotics trafficking organizations in Southeast Asia.[3] This findings by the US treasury is only rescinded the against the bank as the results of the revocation of the bank licenses by the government of Myanmar, not because of remedial actions by the bank.[10]

See also[edit]

Asia Wealth Bank

Eike Htun

References[edit]

1. Jump up^ http://www.fincen.gov/statutes_regs/patriot/section311.html

2. ^ Jump up to:a b http://www.fincen.gov/statutes_regs/patriot/pdf/311_burmese_banks.pdf

3. ^ Jump up to:a b "Money Laundering in Burma".

4. Jump up^ http://dazzlepod.com/cable/07RANGOON114/

5. Jump up^ Eike Htun (September 2005). "Eike Htun drug link allegation and accused for being a puppet for powerful interest". The Irrawaddy. Retrieved 15 May 2013.

6. Jump up^ "Cablegate: Burma: How the Well-Connected Make Money - Scoop News".

7. Jump up^ "Burmese Tycoons Part I".

8. Jump up^ "U AIK HTUN". AFG Venture Group. 2012. Retrieved 29 October 2012.

9. Jump up^ "Burma's Private Banking Crisis". Retrieved May 2013. Check date values in: |access-date= (help)

10. Jump up^ http://www.gpo.gov/fdsys/pkg/FR-2012-10-01/pdf/2012-23995.pdf

Shwe Thanlwin From Wikipedia, the free encyclopedia

Shwe Than lwin Company

Native name န ႊသ လြငကုမ္ၸဏြီီမ္ တက္

Industry Transportation Media Internet services

Hotels Construction

Founded January 1998

Headquarters Bothataung Township, Yangon, Myanmar

Owner Kyaw Win

Subsidiaries

Shwe Thanlwin Media

Shwe Rural and Urban Development Bank

Shwe Trading

Shwe Thanlwin Highway Co Ltd

Thanlwin Ayeyar Gems Co Ltd

Website {{URL|example.com|optional

display text}}

Shwe Thanlwin Company (Burmese: န ွှေသ ြ ငက်ုံမ္ပဏ)ီ is a major Burmese company.[1] It was

founded by Kyaw Win, a close associate of Kyaw Hsan, a former military general,[2] and enjoyed an exclusive business relationship with the Ministry of Industry in the 2000s.[1]

Following Cyclone Nargis, Shwe Thanlwin was one of the companies awarded contracts by the State Peace and Development Council for reconstruction work in the Ayeyarwady delta region, including low-cost homes for refugees.[3][4] Shwe Thanlwin owns Sky Net, a satellite television channel, through Shwe Thanlwin Media, which was launched on 6 October 2010.[5][6] Shwe Thanlwin also maintains the Bago-Nyaunglebin portion of the National Highway 1 (Burma).[7]

In 2014, the Central Bank of Myanmar issued a license to Shwe Rural and Urban Development Bank, which is a subsidiary of Shwe Thanlwin.[8]

References[edit]

1. ^ Jump up to:a b "Burmese Tycoons Part II". The Irrawaddy. July 2000. Retrieved 11 July 2015.

2. Jump up^ Sandar Lwin (29 September 2014). "Minister insists broadcast sector has full media freedom". Myanmar Times. Retrieved 11 July 2015.

3. Jump up^ Saw Yan Naing (16 July 2008). "Nargis Refugees Offered Low-cost Housing". The Irrawaddy. Retrieved 11 July 2015.

4. Jump up^ "Regime Cronies Win Reconstruction Contracts". The Irrawaddy. June 2008. Retrieved 11 July 2015.

5. Jump up^ Nilar Win (11 October 2010). "Media firm introduces satellite TV, internet and phone services". Myanmar Times. Retrieved 11 July 2015.

6. Jump up^ Boot, William (18 September 2013). "Investors in Burma Telecom Sector Face 'Corrupt, Crony Practices': Report". The Irrawaddy. Retrieved 11 July 2015.

7. Jump up^ "Rangoon-Mandalay highway toll tax doubled". Mizzima. 5 November 2009. Retrieved 11 July 2015.

8. Jump up^ "Shwe Thanlwin awarded banking licence". Eleven Myanmar. 14 September 2014. Retrieved 11 July 2015.

Union of Myanmar Economic Holdings From Wikipedia, the free encyclopedia

Myanma Economic Holdings Limited

Native name မ္နာ္ာ့ စီီးပ ာီးန ီး ဦီးပ ုံင ်ြီမ္ တက ်

Industry Conglomerate

Founded February 1990

Founder Ministry of Defence (Burma)

Headquarters Yangon, Myanmar

Owner Burmese military personnel (60%)

Directorate of Defence Procurement (40%)

Subsidiaries

Myawaddy Bank

Myawaddy Tours & Travel

Myawaddy Enterprises Group

Pyininbin Industrial Park

The Union of Myanmar Economic Holdings Limited (Burmese: မပညန်ထာငစ်ုံ မမ္ေမ်္ာန ုံငင် စီီးပ ာီးန ီး

ဦီးပ ုံင ်ြီမ္ တက်; also called Myanma Economic Holding and abbreviated UMEHL or UMEH) is one

of two major conglomerates run by the Burmese military (through the Ministry of Defence), the other being the Myanmar Economic Corporation (MEC).[1] In May 2012, when the United States suspended sanctions against Burma (Myanmar), sanctions against UMEHL were kept in place, because of its affiliation to the Burmese Tatmadaw.[2]

UMEHL also operates Myawaddy Bank and the Burmese military's pension fund.[3] The headquarters are located on Maha Bandula Road in Yangon's Botataung Township.[4]

History[edit]

UMEHL was established in February 1990 under the Special Companies Act as the economic arm of the Burmese military, during a period of privatisation and transition from a socialist command economy, with an initial capital of $1.6 billion USD.[5][6] UMEHL was established to generate profits from light industry and the trade of commercial goods.[7]

In the 2000s, several state-run enterprises including sugar factories were transferred under the control of UMEHL and MEH.[8] By 2007, UMEHC wholly owns seventy-seven firms, nine subsidiaries and seven affiliated companies. Its shares are avaible to military units, active duty and retired military and veterans' groups, returning a 30% profit since 1995.[9]

The UMEHL conglomerate is jointly owned by two military departments; 40% of shares are owned by the Directorate of Defence Procurement while 60% of shares are owned by active and veteran defence personnel, including high-ranking military officials of the former ruling military junta,

the State Peace and Development Council (SPDC) and veterans organisations. UMEHL is exempt from commercial and profit taxes.[10]

In 2010, UMEHL opened Ruby Mart, a 50,000-square-foot (4,600 m2) 5-storey shopping complex in Yangon's Kyauktada Township, in a building that once housed the Ministry of Commerce's Myanmar Agricultural Produce Trading.[11]

UMEHL is one of 18 Burmese firms involved in the development of the 50,000 acres (20,000 ha) Thilawa Special Economic Zone near Yangon.[12]

The conglomerate has also been involved in lucrative partnerships with drug lords.[13]

Economic interests[edit]

UMEHL has a monopoly on the country's gems sector and also has a significant portfolio in various industries including banking, tourism, real estate, transportation, and metals.[14] With its affiliation to the Burmese military, which directly ruled the country for almost 50 years, UMEHL has exclusive access to secure preferential contracts with foreign firms.[8] Most FDI in Burma is done through joint ventures with UMEHL.[15]

Among its subsidiaries include:[10][11]

Bandula Transportation

Parami Bus

Myawaddy Trading

Five Stars Ship Company

Myawaddy Bank

Virginia Tobacco Company Limited

Myawaddy Tours & Travel

Myawaddy Enterprises Group

Pyininbin Industrial Park (in North Yangon's suburbs)

UMEH Textile

Jade mines (in Kachin State)

Ruby and sapphire mines (in Shan State)

UMEHL has a 45% share in Myanmar Brewery Limited (MBL), which manufactures Tiger Beer, Myanmar Beer, ABC Stout and Anchor Beer. Myanmar Brewery Limited is a joint venture between UMEHL and Japan's Kirin Company, which bought the 55% stake of Fraser and Neave Ltd in 2015. Prior to the acquisition, UMEHL was involved in a controversial attempt to acquire a majority stake in Myanmar Brewery, which controls over 2/3 of the country's beer market.[16]

References[edit]

1. Jump up^ McCartan, Brian (28 February 2012). "Myanmar military in the money". Asia Times. Retrieved 30 September 2012.

2. Jump up^ Brady, Brendan (7 September 2012). "Boom Days In Burma". Newsweek. Retrieved 30 September 2012.

3. Jump up^ Min Zin (August 2003). "Waiting for an Industrial Revolution". The Irrawaddy. Retrieved 30 September 2012.

4. Jump up^ "UNION OF MYANMAR ECONOMIC HOLDINGS LIMITED". Excluded Parties List System. U.S. Government. Retrieved 30 September 2012.

5. Jump up^ Zin Linn (2 June 2012). "Burma and the international development aid and FDI". Asia Tribune. Retrieved 30 September 2012.

6. Jump up^ Myat Thein (2004). Economic Development of Myanmar. Institute of Southeast Asian Studies. ISBN 9789812302113.

7. Jump up^ "Myanmar: The Politics of Economic Reform" (PDF). Asia Report N° 231. International Crisis Group. 27 July 2012.

8. ^ Jump up to:a b Fujita, Kōichi; Fumiharu Mieno; Ikuko Okamoto (2009). The Economic Transition in Myanmar After 1988: Market Economy Versus State Control. NUS Press. ISBN 9789971694616.

9. Jump up^ David I. Steinburg. Burma/Myanmar: What Everyone Needs to Know. Oxford University Press. pp. 164–165. ISBN 978-0-19-998167-0.

10. ^ Jump up to:a b Singh, Ravi Shekhar Narain (2005). Asian Strategic And Military Perspective. Lancer Publishers. p. 209. ISBN 9788170622451.

11. ^ Jump up to:a b "Junta-controlled firm opens shopping centre in Rangoon". Mizzima. 11 October 2010. Retrieved 3 October 2012.

12. Jump up^ "500 foreign, local firms get land permits". Weekly Eleven. 30 September 2012. Retrieved 3 October 2012.

13. Jump up^ Burma: Prospects for a Democratic Future. Brookings Institution Press. 1998. ISBN 9780815775812.

14. Jump up^ Callahan, Mary P. (2005). Making Enemies: War And State Building in Burma. Cornell University Press. ISBN 9780801472671.

15. Jump up^ Tin Maung Maung Than (2007). State Dominance in Myanmar: The Political Economy of Industrialization. Institute of Southeast Asian Studies. ISBN 9789812303714.

16. Jump up^ Sean Gleeson (August 7, 2015). "Time Called on Myanmar Beer Battle as Military Conglomerate Agrees to Buyout Terms". The Irrawaddy. Retrieved March 7, 2016.

Young Investment Group

Young Investment Group

(YIG)

Type Private

Industry Conglomerate, across multiple business

sectors

Founded 1998

Headquarters B

Products Insurance, Finance, IT & Telecom,

Energy, Mining, Automobile,

Construction, Manufacturing and

Trading

Number of

employees

6000 local and worldwide

Parent

n/a

Website http://www.yigmm.com/

Young Investment Group (YIG) is a private company in Burma employing more than 6000 local workers and operating 16 subsidiaries in Myanmar, China and Singapore.

Established in 1998.

YIG Business Sectors[edit]

The conglomerate is involved in business sectors in Myanmar ranging from trading and automobile to insurance and micro-finance

The business sectors are:

Insurance: YIG conduct its insurance business via Young Insurance Global Co. Ltd. (license entity Great Future International Insurance Co) . It is one of the 12 companies in Myanmar that is awarded the insurance license by the government.[1][2]

Finance: YIG is also one of the companies in the country to be awarded a finance license by the Burma Government.[3] The company engage in SME financing and also have a separate entity providing Micro-financing.

IT & Telecom: YIG telecom division provide site survey and installation. It is also involved in the country's BTS deployment projects.

Energy: YIG have an oil and gas exploration division handling E&P, Surveying and Logistics, and a Hydro Power division which is involved in the Myitha and Yazagyo Hydropower projects. On 10 Oct 2013, the Myanmar Ministry of Energy announced that YIG Joint venture company, Pacific Hunt Energy Corp, won 2 key PSC blocks in Indaw-Yenan and Taungoo-Pyinmana area.[4] Other winners of the other blocks include other key energy players such as Eni and Petronas Carigali.

Automobile: Established since 2002, YIG automobile division Young's Auto is one of the earliest and major car importer of Myanmar.

Trading: The trading arm of YIG handles the import of heavy machinery, construction materials and automobiles and the export of manufactured goods.

Mining: YIG mining companies are one of the major companies in Burma involved in rubies and jade mining. In addition to precious gems mining, the company has also mine gold and minerals.

Manufacturing: YIG has factories producing manufactured goods. It also have Gin factories in the Magway and Mandalay regions

Construction: The company construction arm is involved in real estate development, infrastructure, housing and factory construction

References[edit]

1. Jump up^ "12 private insurance companies given conditional approval to start operating in Myanmar".

2. Jump up^ "Myanmar Private Insurance Firms".

3. Jump up^ "Central Bank of Myanmar".

4. Jump up^ "MOE announcement of onshore oil&gas blocks winners".

Yuzana Company

Yuzana Company Limited

Native name ယုံဇေကုံမ္ပဏြီီမ္ တက်

Industry Conglomerate

Founded 1994

Founder Htay Myint

Headquarters Yangon, Myanmar

Number of

locations

Yuzana Centre, Shwegondaing

Road, Bahan Township

Key people Htay Myint, Pu Kyi

Divisions

Yuzana Construction

Yuzana Hotels

Website www.yuzanahotels.com

Yuzana Company Limited (Burmese: ယုံဇေကုံမ္ပဏြီီမ္ တက်) is a Burmese company involved in the

construction, agriculture, hospitality, real estate and fishery industries.[1]

Yuzana Company was established in 1994 by Htay Myint, a businessman with close ties to Khin Nyunt, a former Burmese prime minister and Than Shwe, the former head of the country's military junta.[1][2] Yuzana began as a fisheries venture in Myeik (Mergui) in Southern Burma's Taninthayi Division.[3] Yuzana Company also owns palm oil, sugarcane, teak, physic nut (Jatropha curcas), and rubber plantations.[2][3]

Yuzana is one of Burma's largest producers of lahpet (pickled tea leaves), a national dish.[4]

Yuzana is also one of four indigenous Burmese companies that harvests marine shrimps, in a 50 acres (20 ha) farm.[5]

Projects[edit]

In 1994, Yuzana Company opened one of Burma's largest shopping centers, Yuzana Supermarket, in Rangoon.[1] In 1997, it opened Yuzana Hotel, an 198 room hotel in Rangoon.[1] In the 1990s, the company constructed Yuzana Garden City, a suburban housing development in Rangoon.[3]

In 2007, Yuzana Company was awarded a build-operate-transfer government contract to redevelop the 120 miles (190 km) Stilwell Road, which linked northeast India and China during World War II and collect toll and tax fees for 30 years.[6]

In November 2010, Yuzana Company opened a 20,000 square feet (1,900 m2) tapioca powder factory in Kachin State, near the company's plantations in the Hukawng Valley.[7] The factory is reported to be the largest in Southeast Asia.[7]

In 2011, Yuzana Company was named as one of the subcontractors for a major development project, to establish a special economic zone in Dawei.[8]

Tourism[edit]

Yuzana Company currently operates three hotels in Myanmar:

1. Yuzana Hotel - Bahan Township, Yangon

2. Yuzana Garden Hotel - Mingala Taungnyunt Township, Yangon

3. Yuzana Resort Hotel - Ngwesaung

Controversy[edit]

Yuzana Company, as well as its founder Htay Myint, are currently subject to American investment sanctions.[9]

The company has received preferential government loans to subsidize financially unsound projects.[10]

Land confiscation and habitat destruction[edit]

Since 2006, Yuzana Company has seized over 400,000 acres (1,600 km2) of land from Kachin State farmers to plant sugarcane and cassava in massive mono-crop plantations.[11] That year, the Burmese government granted Yuzana Company a land concession to develop an agricultural development zone in Kachin State's Hukawng Valley (much of it in the Hukawng Valley Tiger Reserve), in Danai and Hpakant Townships.[12] Within the boundaries of the land concession were seven villages that housed approximately 5,000 farmers.[12]

In August 2012, after negotiations with the National Democratic Front, Htay Myint elected to return a more than 1,000 acres (400 ha) of farmland to farmers in Hpakant Township.[13] The farmers had sued Yuzana Company for the uncompensated confiscation of 1,038 acres (420 ha) of farmland in 2010.[14] 200,000 acres (81,000 ha) of the plantations are in the Hukawng Valley Tiger Reserve.[15]

The company has razed forests and destroyed animal corridors in the world's largest tiger reserve.[16] In 2011, Kachin News Group, an ethnic news organization reported that the Burmese military had been stockpiling weapons in Yuzana Company's crop plantations in the Hukawng Valley.[11]

In July 2012, Yuzana Company was named as one of the perpetrators involved in illegal farmland seizures (initially part of a contract farming scheme) in Yangon Region's Dagon Seikkan and East Dagon Townships.[17]

References[edit]

1. ^ Jump up to:a b c d "Burmese Tycoons Part I". The Irrawaddy. June 2000. Retrieved 11 October 2012.

2. ^ Jump up to:a b Rogers, Benedict (2012). Burma: A Nation At The Crossroads. Random House. ISBN 9781448118656.

3. ^ Jump up to:a b c "Tracking the Tycoons". The Irrawaddy. September 2008. Retrieved 11 October 2012.

4. Jump up^ Allchin, Joseph (3 February 2012). "Burma Farmers Fear Land Act". The Irrawaddy. Retrieved 11 October 2012.

5. Jump up^ Juliet Shwe Gaung (7 December 2009). "Prawn and shrimp exports falling, says MPEA". Myanmar Times. Retrieved 11 October 2012.

6. Jump up^ "Burma's Yuzana in India-China Road Link Deal". The Irrawaddy. 23 November 2007. Retrieved 11 October 2012.

7. ^ Jump up to:a b Thae Thae Htwe (22 November 2010). "Tapioca factory to open in Kachin". Myanmar Times. Retrieved 11 October 2012.

8. Jump up^ Ko Wild (22 December 2011). "21 villages to be relocated for Dawei project". Mizzima. Retrieved 11 October 2012.

9. Jump up^ "EXPANSION OF THE NATIONAL EMERGENCY WITH RESPECT TO BURMA" (PDF). US Government Printing Office. 22 October 2007. Retrieved 11 October 2012.

10. Jump up^ Aung Zaw (September 2005). "Tycoon Turf". The Irrawaddy. Retrieved 11 October 2012.

11. ^ Jump up to:a b "Burmese Army stockpiles weapons in Yuzana Company, Hukawng Valley". Kachin News Group. 25 January 2011. Retrieved 11 October 2012.

12. ^ Jump up to:a b "Tyrants, Tycoons and Tigers: Yuzana Company Ravages Burma's Hugawng Valley" (PDF). Kachin Development Networking Group. 25 August 2010. Retrieved 11 October 2012.

13. Jump up^ Kya Hpone Kyaw (31 August 2012). "Yuzana Company says it will compensate the confiscate land in Hugawng valley". Retrieved 11 October 2012.

14. Jump up^ Phanida (19 July 2010). "Farmers to sue junta crony's Yuzana Company if talks fail". Mizzima. Retrieved 11 October 2012.

15. Jump up^ "Mono-crop Plantations Threaten Tiger Reserve". The Irrawaddy. 25 August 2010. Retrieved 11 October 2012.

16. Jump up^ Gooch, Frederick (2011). Shoot on Sight. Xlibris. p. 207. ISBN 9781456899820.

17. Jump up^ "Ministers, MPs involve in land seizures". Eleven Myanmar. 30 July 2012. Retrieved 11 October 2012.

Zaykabar Company From Wikipedia, the free encyclopedia

Zaykabar Company Limited

Type Conglomerate

Industry Construction

Founded 1990

Founder Khin Shwe

Headquarters Yangon, Myanmar (Burma)

Key people Khin Shwe, Chairman

Zay Thiha, Vice-Chairman

Parent

National Development Company Group

Divisions

Mya Yeik Nyo Foundation

Zaykabar Company Limited (Burmese: နဇကမ္ဘာကုံမ္ပဏ;ီ also spelt Zay Gabar or Zay Ka Bar) is a

major Burmese conglomerate with interests in construction and telecommunications. The company was founded by Khin Shwe in 1990.

Zaykabar and its owner Khin Shwe have been placed on the American sanctions list since 2007, for its close ties with the Burmese military.[1]

Projects[edit]

In October 2007, Zaykabar opened Royal Mingalardon Golf Course, a 280 acres (1.1 km2) and 21-hole golf course as part of Mingaladon Garden City, a housing estate on the outskirts of Yangon.[2]

In 2008, Zaykabar opened Pyay Garden Condominium, a 25-story condominium tower in Yangon's Mayangone Township, the tallest building in Myanmar.[3]

Zaykabar also owns and operates Mya Yeik Nyo Royal Hotel in Yangon.[4]

In May 2010, after the privatization of the country's petrol market, Zaykabar was one of few companies to be issued operating licenses for petrol stations, under the name of Toe Naing Mann, Shwe Mann's son.[5][6]

In September 2011, Zaykabar established its philanthropic arm, Mya Yeik Nyo Foundation for Health, Education and Culture.[7][8]

Zaykabar operates 2 entertainment venues at Yangon's Kandawgyi Lake, the Karaweik Oo Yin Kabar fun fair area (which includes a mini-zoo and playgrounds) and the Myaw Sin Kyun Island, a concert venue.[9]

Zaykabar also owns Cherry FM, a radio station in Taunggyi but broadcast from Yangon.[10] The station is headed by Khin Shwe's daughter, Zay Zin Latt.[11]

Controversies[edit]

In the 1990s, Zaykabar hired Bain & Company, among other firms, to lobby on behalf of the Burmese government to lift trade sanctions in the United States.[12]

In 1997, Zaykabar seized 5,000 acres (20 km2) of land in Mingaladon Township (on the outskirts of Yangon) to construct Mingaladon Garden City, including an industrial zone (Yangon Industrial Zone No. 4), office towers, a mall, 4,000 residential bungalows and a 21-hole golf course.[13] In

February 2010, Zaykabar acquired an additional 845 acres (3.42 km2) of land from Shwenantha village.[14] Farmers allege that they were coerced and duped into giving up their land tenure rights in exchange for paltry compensation.[14] Some farmers received 300,000 kyat in compensation, far below the existing market value of 2 million kyat per acre.[15] Others received little to no compensation.[16]

In May 2012, Zaykabar defied government orders to halt the bulldozing of farmlands.[14] On 17 May 2012, the said farmers filed an application with the Ministry of National Planning and Economic Development to establish a farming collective, the Shwe Wah Su Paung Nyi Nyar Company, to be better positioned to retain their right to farm their lands.[17] In July 2012, farmers protested the confiscation of their farmland, as many farmers had received little or no compensation.[13] Zaykabar's chairman Khin Shwe, who is currently an Amyotha Hluttaw MP, refuted the farmers' grievances at a parliamentary session on 23 July 2012.[15] That same day, the company filed defamation charges against Nay Myo Wai, a Peace and Diversity Party politician who has been advocating on behalf of the farmers.[18]

In September 2011, 150 rubber plantation farmers from Mon State's Kyaikmaraw Township protested the confiscation of 830 acres (3.4 km2) of land by Zaykabar.[19] The farmers had been unfairly compensated for their land, each receiving about 350,000 kyat in total, far below the existing market value of 800,000 to 3 million kyat per acre.[19] In the works is a $220 million USD cement factory project that will be capable of manufacturing 3,300 tons of cement daily.[19]

References[edit]

1. Jump up^ McCartan, Brian (26 August 2009). "On the march to do business in Myanmar". Asia Times. Retrieved 28 October 2012.

2. Jump up^ Zaw Win Than (20 August 2007). "Zaykabar takes swing at Asia's golf tourists". Myanmar Times. Retrieved 28 October 2012.

3. Jump up^ Kyaw Soe Lin (8 October 2007). "Myanmar's tallest building to open in style early 2008". Myanmar Times. Retrieved 28 October 2012.

4. Jump up^ Zaw Win Than (30 July 2012). "Foreign hotels meet cap as local prices take off". Myanmar Times. Retrieved 28 October 2012.

5. Jump up^ "Sons of top generals handed fuel-station permits". Mizzima. 14 June 2010. Retrieved 28 October 2012.

6. Jump up^ "Drivers in Rangoon unhappy about petrol rationing". Mizzima. 26 April 2011. Retrieved 28 October 2012.

7. Jump up^ Cherry Thein (31 October 2011). "Mya Yeik Nyo Foundation to start work in November". Myanmar Times. Retrieved 28 October 2012.

8. Jump up^ Shwe Yinn Mar Oo (19 September 2011). "Businessman to found K1b fund for education". Myanmar Times. Retrieved 28 October 2012.

9. Jump up^ May Thaw (2 July 2007). "Yangon recreation centres attract more visitors". Myanmar Times. Retrieved 28 October 2012.

10. Jump up^ Kyaw Zin Htun (16 November 2009). "Internet radio on the way: Red Link". Myanmar Times. Retrieved 28 October 2012.

11. Jump up^ "Junta allows more FM Radio Stations". Mizzima. 4 June 2009. Retrieved 28 October 2012.

12. Jump up^ Smith, R. Jeffrey (24 February 1998). "Burma's Image Problem is a Moneymaker for US Lobbyists". Washington Post.

13. ^ Jump up to:a b "As political reforms unfold in Myanmar, formerly cowed farmers seek redress for lost land". Associated Press. 22 October 2012. Retrieved 28 October 2012.

14. ^ Jump up to:a b c Noe Noe Aung (14 May 2012). "Zaykabar defies order on farmland". Myanmar Times. Retrieved 28 October 2012.

15. ^ Jump up to:a b "Farmlands will not return to farmers, says MP". Weekly Eleven. 28 July 2012. Retrieved 28 October 2012.

16. Jump up^ Noe Noe Aung (27 February 2012). "Company lied about project for industrial zone: farmers". Myanmar Times. Retrieved 28 October 2012.

17. Jump up^ Noe Noe Aung (28 May 2012). "Farmers apply to establish company to challenge Zaykabar". Myanmar Times. Retrieved 28 October 2012.

18. Jump up^ Noe Noe Aung; Win Ko Ko Latt (30 July 2012). "Zaykabar files defamation charge against politician over land dispute". Myanmar Times. Retrieved 28 October 2012.

19. ^ Jump up to:a b c Kun Chan (7 September 2011). "Farmers protest cement factories' compensation for their land". Mizzima. Retrieved 28 October 2012.

https://en.wikipedia.org/wiki/Category:Retail_companies_of_Myanmar

Retail companies of Myanmar C

City Mart Holdings

D

Diamond Plaza (Mandalay)

G

Gamone Pwint

L

Loi Hein Company

M

Myanmar Distribution Group

S

Sein Gay Har

S

► Shopping malls and markets in Myanmar

City Mart Holdings From Wikipedia, the free encyclopedia

City Mart Holding Co.,Ltd.

Native name စီီးတီီးမတ် ဟိ ီးဒငီ်းလီမိတက်

Type Private

Industry Retail

Founded 1996 in Yangon, Myanmar

Headquarters No.1-11, Padonmar Stadium (East Wing),

Bargayar Street, Sanchaung

Township, Yangon, Myanmar

Key people Win Win Tint (Founder and Managing

Director)

Brands City Mart Supermarket

Ocean Supercentre

City Care Pharmacy

Seasons Bakery

Marketplace by City Mart

City Baby Club

City Books & Music

Popular Bookstore

City Express

Number of

employees

8000

Website www.cmhl.com.mm

City Mart Holdings (CMHL, Burmese: စီီးတီီးမတ် ဟိ ီးဒငီ်း) is Myanmar’s one of the

largest retail chain,[1] employing more than 8,000 employees. The City Mart Group started as a modern supermarket in 1996 in the north wing of Bogyoke Aung San Stadium[2] but has since expanded into many different aspects of modern retail trade such as supermarkets, pharmacies, bookstores, baby stores, convenience stores and bakery & coffee shops. The stores are primarily located in the cities of Yangon, Mandalay and NaypyitawNow it also expanded in some major towns in Upper Myanmar.[3][4][5][6][7]

City Mart Holdings Co., Ltd. was ranked 31 in Myanmar for the fiscal year 13/14 Income Tax Ranking, and 5 for the Commercial Tax Ranking Myanmar Index.[

1Myanmar Retail Sector

2Businesses under CMHL

o 2.1City Mart Supermarkets

o 2.2Ocean Supercenters

o 2.3Marketplaces by City Mart

o 2.4City Baby Clubs

o 2.5City Care

o 2.6City Books & Music

o 2.7Seasons Bakery

o 2.8City Express

3CSR activities

4References

5External links

Myanmar Retail Sector[edit]

In 2015 modern retail in Myanmar accounted for approximately 10 percent[9] of the fast-moving consumer goods (FMCG) segment, but as local purchasing power grows, the demand for modern consumer goods is expected to rise.[10] The McKinsey Global Institute predicted in a report from 2013 that Myanmar’s economy could quadruple by 2030, from around $45 billion to $200 billion. The report predicted a likewise increase in the consumer class spending capabilities with a yearly increase of $100 billion per year.[11]

Businesses under CMHL[edit]

City Mart Supermarkets[edit]

The City Mart Supermarkets are catered to urban households focusing on food and lifestyle. As of 2016, 26 City Mart Supermarkets have opened in Yangon and Mandalay.[12] Many City Mart Supermarkets have pop-up stores inside them for beauty products, pharmacy, wine & spirits, kitchen utensils etc. Most stores have a wide selection of foreign products.

Ocean Supercenters[edit]

Ocean Supercenter was the first hypermarket to open in Myanmar in 2006. They are known as the one-stop place for shopping food, clothing, beauty products, household products and much more. As of 2016, there are 10 Ocean Super centers located in Yangon, Mandalay, Naypyidaw, Monywar, Mawlamyaing and Pathein.[13]

Marketplaces by City Mart[edit]

Marketplaces by City Mart offer a wider range of international and premium products in Yangon. They offer special treats like locally produced coffee and chocolate products.[14] Opened in 2011 as a premium supermarket brand in the Golden Valley shopping center. Second outlet opened in 2013 at the FMI Center Parkson.

City Baby Clubs[edit]

City Baby Clubs sell daily essentials, accessories, toys and food products for mothers and baby care. The Baby Club has expanded to 6 outlets in Yangon and Mandalay.

City Care[edit]

City Care pharmacies provide pharmaceutical products, beauty and health products. There are 35 City Care stores in Yangon, Mandalay, Naypyidaw, Monywar, Mawlamyaing and Pathein.

City Books & Music[edit]

Local bookstore and music chain providing Myanmar-focused books and magazines as well as original music of both local and international musicians. There are 13 City Books & Music outlets.

Seasons Bakery[edit]

Seasons Bakery provides freshly baked goods. Seasons outlets have expanded to 34 outlets.

City Express[edit]

A convenience store chain opened 24-hours that currently operates 52 outlets in Yangon. City Express started as a mini-shop outlet and opened in April 2011 on Hledan Road in Yangon. Rebranded as City Express in 2013.

CSR activities[edit]

The company started the City Love & Hope Foundation in 2013 to provide support in the following areas to the communities:

Education

Health

Environment

Community Livelihood[15]

References[edit]

1. Jump up^ "Myanmar retail sector ringing up sales | Retail News Asia". Retail News ASIA. Retrieved 2015-10-15.

2. Jump up^ "A Tale of Retail Success". The Irrawaddy. Retrieved 2015-11-02.

3. Jump up^ "Myanmar retail sector ringing up sales". Retail News Asia – via Retail Asia News.

4. Jump up^ "MMRA Home". mramyanmar.com. Retrieved 2015-11-02.

5. Jump up^ "Win Win Tint". Win Win Tint | World Economic Forum. Retrieved 2015-11-09.

6. Jump up^ "Local entrepreneur beats out ASEAN competition". www.mmtimes.com. Retrieved 2015-11-09.

7. Jump up^ "Win Win Tint 39 (Myanmar) - In Photos: Asia's Power Businesswomen 2015". Forbes. Retrieved 2015-11-09.

8. Jump up^ Pwint Thit Sa. "TIME 2014 Myanmar Tax Index" (PDF).

9. Jump up^ "International brands attracted to Myanmar". Mizzima. Retrieved 2015-11-02.

10. Jump up^ "Myanmar retail sector ringing up sales | Retail News Asia". Retail News ASIA. Retrieved 2015-11-02.

11. Jump up^ Chhor, Heang; Dobbs, Richard; Hansen, Doan; Thompson, Fraser; Shah, Nancy; Streiff, Lukas (June 2013). "Myanmar's moment: Unique opportunities, major challenges". www.mckinsey.com. Retrieved 2015-11-02.

12. Jump up^ "City Mart | Myanmar's leading supermarket". City Mart | Myanmar's leading supermarket. Retrieved 2015-11-03.

13. Jump up^ "Ocean – Supercenter, Myanmar's Large format retailer in Yangon, Nay Pyi Taw & Mandalay". oceansupercenter.com.mm. Retrieved 2015-11-03.

14. Jump up^ "Marketplace by City Mart - Lonely Planet". Lonely Planet. Retrieved 2015-11-03.

15. Jump up^ "City Mart Holding Co.,Ltd. - CSR Activities". cmhl.com.mm. Retrieved 2015-10-15.

External links[edit]

City Mart Supermarket

Ocean Supercenter

Marketplace by City Mart

City Baby Club

City Care

City Books & Music

Popular Bookstore

Seasons Bakery

City Express

Diamond Plaza (Mandalay) From Wikipedia, the free encyclopedia

Diamond Plaza

ဒိ ငီ်းမနွီ်းပလာဇာ

General information

Type Shopping Centre

Address between 77th and 78th streets and 33rd

and 34th streets in Kinsana Mahi quarter,

Chanaye Tharsan township.

Construction

started

2010

Opened August 15, 2012

Cost US$40

Owner MCDC,Mamdalay Golden Wings

Height

Top floor 6(Diamond Plaza),7(Yadanabon Super

Centre)

Technical details

Lifts/elevators 20

Design and construction

Architecture

firm

Process Myanmar Company

Structural

engineer

KMT group

Other information

Number of

rooms

600(Tower A),323(Tower B)

Parking Underground Parking and Ground

Parking (approximately 600 cars)

Diamond Plaza (Burmese: ဒိ ငီ်းမနွီ်းပလာဇာ), the biggest shopping centre in Mandalay, was officially

opened in August 15,2012. It is located in downtown of Mandalay near the Mandalay Railway Station. The site has two towers A and B, Diamond Plaza and Yadanarbon Super centre.[1]

Tower A, Diamond Plaza, has Ocean Super Centre and Three mini Cinema, Mingalar Diamond, and one hall in the top floor.

References[edit]

1. Jump up^ Kyaw Hsu Mon (6 August 2012). "Diamond Plaza to open August 15". Myanmar Times. Retrieved 28 February 2017.

Gamone Pwint From Wikipedia, the free encyclopedia

Ga Mone Pwint

Native name ဂမ နီ်းပငွ ်

Type Private

Industry Retail

Founded 1991; 26 years ago in Yangon, Myanmar

Headquarters Yangon, Myanmar

Key people Nay Lin Oo, Chair

Website www.gmp-myanmar.com

Ga Mone Pwint (Burmese: ဂမ နီ်းပငွ ;် GMP) is a major Burmese conglomerate. Ga Mone Pwint is

presently headed by company chair, Nay Lin Oo.[1] The company runs major shopping centers in Yangon.[2]

References[edit]

1. Jump up^ Ye Mon (1 November 2016). "Private company's donation to Yangon Region government prompts questions". Myanmar Times. Retrieved 7 November 2016.

2. Jump up^ Kyaw Hsu Mon (14 December 2009). "Xmas promotions push year-end sales". Myanmar Times. Retrieved 7 November 2016.

Loi Hein Company From Wikipedia, the free encyclopedia

Loi Hein Company Ltd.

Native name လွယ်ဟိနီ်းက မပဏ ီ

Industry Fast-moving consumer goods

Founded 1996

Headquarters Yangon, Myanmar

Owner Sai Sam Htun

Subsidiaries

Loi Hein Distribution Company

Yadanabon FC

Website www.loiheingroup.com

Loi Hein Company Limited (Burmese: လွယ်ဟိနီ်းက မပဏ)ီ is a major Myanmar-based company

specializing in fast-moving consumer goods (FMCG).[1] Loi Hein is known for its soft drink products, including the Alpine bottled water brand, and an energy drink line called Shark.[1]

IBTC was founded in 1996 by Sai Sam Htun, an ethnic Shan.[1]

References[edit]

^ Jump up to:a b c Aung Min; Toshihiro Kudo (2014). "Business Conglomerates in the Context of

Myanmar's Economic Reform" (PDF). Myanmar's Integration with Global Economy: Outlook and

Opportunities. Bangkok Research Report. Retrieved 11 July 2015.

Myanmar Distribution Group Myanmar Distribution Group, established in 1996, is a major FMCG distributor in Myanmar. Through its network of over 24 branches throughout the whole of Myanmar, it delivers to over 32,000 retail outlets each month, and provides consumer goods to Myanmar’s 60 million consumers. MDG’s network infrastructure, supply chain management, distribution, marketing, local know-how and logistical expertise help FMCG brand owners expand their market in Myanmar.

External links[edit]

Myanmar Distribution Group website

Sein Gay Har From Wikipedia, the free encyclopedia

Sein Gay Har

Native name စနိဂ်ဂဟာ

Type Private

Industry Retail

Founded 1985; 32 years

ago in Rangoon, Burma

Headquarters Yangon, Myanmar

Website www.seingayhar.com

Sein Gay Har (Burmese: စနိဂ်ဂဟာ; SGH) is a major Burmese retailer. Sein Gay Har began as a

market in Rangoon's Chinatown in 1985.[1]The company runs major shopping centers in Yangon.[2]

References[edit]

1. Jump up^ "Marketing, advertising, and communication management using effective tools". Sein Gay Har Company Limited. Retrieved 7 November 2016.

2. Jump up^ Kyaw Hsu Mon (14 December 2009). "Xmas promotions push year-end

sales". Myanmar Times. Retrieved 7 November 2016.]

Chapter 6

Business Conglomerates in the Context of Myanmar’s Economic Reform

Aung Min and Toshihiro Kudo

Abstract

The purpose of this paper is to identify the role of conglomerates in the context of

Myanmar’s economic reform process. The paper addresses the research question of the

role of business conglomerates and the Myanmar economy, such as are they growth

engines or just political cronies? We select some of the top conglomerates in Myanmar

and assess their profile, performance, and strategies and examine the sources of growth

and limitations for future growth and prospects. The top groups chosen for this paper

are Htoo, Kanbawza, Max, Asia World, IGE, Shwe Taung, Serge Pun Associates

(SPA)/First Myanmar Investment Group of Companies (FMI), Loi Hein, IBTC,

Myanmar Economic Corporation (MEC), and Union of Myanmar Economic Holdings

Ltd. (UMEHL). There are other local conglomerates that this paper does not address

and they include Shwe Than Lwin Group, Eden Group, Capital and Dagon International

etc., which are suggested for further research about Myanmar’s conglomerates in the

future.

Sources of growth and key success factors of the top business groups are their

connection with government, contact with foreign partners, and their competency in the

past and present. In the context of the economic reform, previously favored business

people appear to recognize that the risks of challenging economic reform could

outweigh the likely benefits. In addition, some of the founders and top management of

the conglomerates are still subject to US sanctions. Market openness, media monitoring,

competition by local and foreign players, sanctions, and the changing trends of policy

and the economy limit the growth of conglomerates. With limited options, the cronies of

the conglomerates will have to reform themselves from their murky past and rebrand

and re-establish themselves as valuable contributors to Myanmar’s new economy. On

the other hand, the US government needs to show clear criteria why they put these

business entities and persons on the sanctions list. Moreover, the US government needs

to show the due procedures how these business entities and persons subject to the

sanctions can be reinstated, or does the US government have no intention lifting the

relevant sanctions? The paper also suggests putting in place some measures by

138

government to create a level playing field and encourage conglomerates to become

involved in both the regional and international markets.

1. Introduction

After Myanmar’s independence from the British in 1948, the country adopted a market-

oriented economy and enjoyed the economic benefits of this system. However, in 1962,

due to political reasons, Myanmar abolished the system of the open market economy

and "The Burmese Way to Socialism" was declared as the official policy for the future

economic development of the nation. The nationalization of private enterprises,

factories, and businesses, and the negligence of market forces worsened and

deteriorated the economy in every aspect. Under the military rule after 1988, the

government attempted to revive the market economy system. Although changes in the

economy took place during the military regime, some legacies of the socialist system

were still prevalent. ‘Nepotism and Cronyism’ practices were initiated with the

objective of quick infrastructure development and shaping the economy in the hands of

the state and local people.

Myanmar is an emerging economy with an estimated GDP of $83.74 billion (Cia.gov,

2013), a real GDP growth rate of 5.5% (2013 est.), and a labor force of 32.5 million.

Myanmar’s economy was as small as USD 2.3 billion in the early stages of the market

oriented economic system in 1990. It gradually increased until 2005 when GDP stood at

about USD 12 billion. The economy has increased tremendously since 2005 due

primarily to gas exports, and also timber, jade, pulse, and bean exports. Growth of the

economy has doubled and tripled in the recent 5-year terms. The composition of the

GDP has changed significantly from an agriculture based economy to one dominated by

industry and the service sector since 2000-01. Myanmar’s political reforms were

essentially derived from the former military regime’s “Seven Road Map” of August

2003, which was the orchestrated product of the decade-long military plan for an

orderly “transfer” of power. After taking over power from the military government, the

new government has initiated various reform processes since 2011. The first reforms

were political reforms, and economic and social reforms followed. President Thein Sein

first expressed in June 2011 that the government would implement reforms to develop

the country in line with democratic practices, and each Union and Ministry must adopt

and implement a reform strategy to determine exactly which functions in its sectors and

139

businesses need reform.1 The President reiterated in the reform workshop held in

August 2011 that management and procedures must be transparent, and to set up an

enabling business environment and cut out bureaucratic red-tape. "In the reform of

macroeconomic policies, there might be situations of sacrifices so as to achieve better

results for the people, and we need to prepare our mind for this. Scholars and officials

concerned are also to focus on flexibility and the correct ratio of policy reforms by

implementing a mixture of macroeconomic policies", he stated.2

The government

adopted various economic reform measures as the second stage. Macroeconomic

reforms, for example – exchange rate unification, more consumer-oriented banking

operations, and trade liberalization have appeared since late 2011. In 2012 the

government declared public sector reform with good governance and clean government

as the third stage of reform. In 2013, private sector reform was initiated as the fourth

reform combined with corporate governance. In the reform process, there is an issue by

internal and external observers that the reform process should create a level playing

field for economic growth, open door policies, and FDI inflows, ease international

sanctions against Myanmar. Myanmar has long been subject to a patchwork of sanctions

and other measures, implemented at different times by the US and various western

countries since 2003, and most observers believe that these have been highly

counterproductive. In response to the rapid changes that have taken place as a result of

the reform process in Myanmar, these sanctions and measures have been eased

considerably, although some remain in place. The European Union (EU) announced in

July 2013 that it would re-open its market to Myanmar and permanently remove trade,

economic, and individual sanctions against the country. The EU will bring Myanmar

back under the so-called 'Everything But Arms' policy, which is part of the EU's

Generalized Scheme of Preferences, and will grant duty-free and quota-free access to

the European market for all products except arms and ammunition. Because of this,

future exports to the EU from Myanmar will increase. Other countries such as Australia,

Canada, and Great Britain etc. have also lifted some of the trade, economic, and

individual sanctions targeted against Myanmar during the past couple of years following

these political and economic reforms. The U.S. also eased some of its financial and

investment sanctions to support Myanmar's economic reforms and democracy-building

process. While the underlying legislation remains in place, President Obama has used

1 With regard to the process of reform for development of the State, President U Thein Sein delivered an

address at a meeting with Union level organization members, Region/State Chief Ministers, Chairmen of

Self-Administered Divisions/Zones, deputy ministers, and departmental heads in the meeting hall of the

President’s office on 19 June 2011. 2 Speech delivered by President U Thein Sein at the National Workshop on Reforms for National

Economic Development held in Nay Pyi Taw on 19 August 2011.

140

his executive powers to authorize new U.S. investment in the country that was

prohibited since 1997. He has also authorized the export of financial services, prohibited

since 2003 – a key step because this measure had effectively excluded Myanmar from

the international, U.S. dollar-based, clearing system. New investment over $500,000 is

subject to a reporting requirement intended to promote responsible business activity. In

May 2013, the Obama administration decided that a 1996 ban on granting U.S. entry

visas to the former military rulers of Myanmar, their business partners, and immediate

families, was no longer necessary after two years of reforms. However, termination of

that visa ban did not mean that people subject to it would automatically be eligible for

visas. President Obama extended for another year the annual National Emergencies Act,

which prohibits U.S. businesses and individuals from investing or doing business with

Myanmar people involved in repression of the democracy movement since the mid-

1990s. Some founding members and top management people in these conglomerates,

and connected business people, as well as the subsidiary companies of these

conglomerates are still on the sanctions list imposed by the U.S. Government. The Htoo

Group of Companies, Max Group of Companies, Asia World Group, Myanmar

Economic Corporation, and the Union of Myanmar Economic Holdings Ltd. are still on

the U.S. Department of the Treasury's sanction list as of November 2013. On the other

hand, individuals such as U Tay Za of the Htoo Group and his family members, U Tun

Myint Naing of Asia World and his family members etc., are still on the U.S.

Government's sanction list.

We have researched questions about the role of business conglomerates in the context

of Myanmar’s economic reforms- are they an engine of growth for the economy, or just

political cronies? This paper discusses this question in detail in the following chapters.

2. Selection of the Conglomerates

2.1 Business conglomerates and Myanmar’s economy

A conglomerate is formed by a combination of two or more companies engaged in

entirely different business sectors, which fall under one corporate group, usually

involving a parent company and several subsidiaries. A conglomerate is often a multi-

industry and multi-national organization. The conglomerates in Myanmar are not truly

global conglomerates. They are multi-industry but they do not have a presence in other

countries, i.e. they are not multi-national. Myanmar has at least 30,000 companies, but

only about 30 of them are regarded as conglomerates by the business arena and

141

observers.

The most successful family-owned business conglomerates in Myanmar have been

built up since the late 1980s after the fall of the Socialist Government. During the late

80s and the early to mid-1990s, these conglomerates enjoyed substantial growth,

whereas Myanmar saw the establishment of new conglomerates in the late 90s that have

been built up by individuals who had close relations to the ruling military junta for

several years.

The Myanmar Billion Group (or Biz-15), is described by author Stuart Larkin in

“Myanmar at the Crossroads: Rapid Industrial Development or De-Industrialization

(2012)”, as “The country's best-connected businessmen with their large family-owned

conglomerates”. Furthermore, Larkin states that “The Biz-15, are important enough to

secure access to the power salons of Nay Pyi Taw under almost all scenarios. Some

have multiple patrons while others are close to just one or two top power-holders”.

Large business groups are important for Myanmar’s economy as they drive the

economy and as they grow steadily with the economy by attracting foreign corporations

to establish joint ventures with them, or start other kinds of business partnerships, thus

attracting more FDI inflows to Myanmar. Conglomerates can use their managerial skills,

knowledge about local markets, established brand image, and financial capacity, to

venture into new industries. They can start things on a scale that would be impossible

for a typical start-up. In addition, large conglomerates create new jobs, thus reducing

unemployment, aiding both the economic and human resource development of

Myanmar’s people.

Nobody knows exactly how large the conglomerates are, however this paper assesses

the scale of the selected conglomerates in terms of lines of business and ownership one

by one.

2.2 Rationales for selection of the conglomerates in Myanmar

The conglomerates in Myanmar selected for this study are based on the top tax-payer

list by business establishments and their popularity. Conglomerates are found in the 15-

Biz Group, meaning the 15 top business groups, 30 conglomerates/30 cronies, and the

Partial List of Cronies Who Provide Political and Financial Support for Burma’s Ruling

Regime; Prepared by Aung Din, in the U.S. Campaign for Burma, June 2011. The

Internal Revenue Department of the Ministry of Finance has released the top tax-payer

list since 2011-12, that declares the top 100 income tax payers and top 100 commercial

tax payers. The Department has issued the top 500 list for the 2012-13 budget year. It

included the names of the tax payers, addresses, and line of business only and no

142

financial data was released. The public can see who are the top tax payers at the

corporate level rather than as individuals. Although the media pointed out that some top

companies in the conglomerates are not in the list, the top tax payers enjoyed

presidential awards and hold diplomatic passports. Some companies from Kanbawza,

UMEHL, IBTC, Shwe Taung, Max, MEC, and Asia World are in the top ten income tax

payer list. Some companies from UMEHL, MEC, IBTC, and Max are in the top ten

commercial tax payer list of 2012-13.

Table 1

Table 2

Thus, altogether 11 business groups were selected as the conglomerates in Myanmar.

Htoo Group of Companies

Max Myanmar Group of Companies

Kanbawza Group of Companies

Asia World Co., Ltd.

IGE Group of Companies (International Group of Entrepreneurs Co., Ltd.)

Shwe Taung Group of Companies

SPA/FMI Group (Serge Pun Associates and First Myanmar Investment Co., Ltd.)

IBTC (International Brewery Trading Co.)

Loi Hein Group of Companies

MEC (Myanmar Economic Corporation)

UMEHL (Union of Myanmar Economic Holdings Ltd.)

3. The Conglomerates’ Profiles, Performance, and Strategy

3.1 Htoo Group of Companies

The Htoo Group of Companies is one of the most influential top conglomerates in

Myanmar. U Tay Za is the founder and Chairman of the Htoo Group, which has over 14

subsidiaries, engaged in numerous business sectors from banking and gems to

hotels/tourism and airlines. He was born in 1963 to a former army cadet from the

Defense Service Academy. He is perhaps Myanmar's best known and admired “business

tycoon” or in a negative sense, a “top crony”, and seen by the public as a man who has

close relationship ties with the former Senior General Than Shwe, and the previous

SPDC military regime. In the late 1980s, U Tay Za founded Htoo Trading Ltd. by

143

leasing a rice mill and engaging in the agricultural sector. Later, the company profited

from the teak extraction and timber business and enjoyed close ties with the top ruling

junta. Over the next decade, the Htoo Group morphed into a conglomerate with several

new business ventures. In 2004 it launched Air Bagan, the first private airline in

Myanmar. It also rolled out branded luxury hotels and began leasing heavy machinery.

Of the 14 subsidiaries, the Htoo Group's well-known companies and firms include AGD

Bank, Air Bagan, Elite-Tech Co., Ayer Shwe Wah, Aureum Palace Hotels and Resorts,

Htoo Trading, and Htoo Wood Products Ltd. etc. The group owns 17 hotels across

Myanmar. The annual income of the Htoo Group of Companies is USD 500 million

according to U Tay Za and according to a Forbes article, thus making the Htoo Group of

Companies Myanmar's largest conglomerate. Future projects will concentrate in the

trading, tourism, construction/real-estate development, and airline sectors. U Tay Za has

recently started to rebrand himself as a good ethical business tycoon and has been trying

to shed off his image of being regarded as Myanmar's “top crony”. Several subsidiaries

of the Htoo Group of Companies, together with U Tay Za and his family members, are

still on the sanctions list of the US Department of the Treasury citing U Tay Za and the

Htoo Group as being actively involved in the arms trade business during the former

military regime. Recently, the group has moved and diversified into an insurance

business, become a private fuel pumping station operator, and is involved in tourism

and hotels etc. The group was granted one of the earliest licenses to import fuel directly

as part of the SPDC's efforts to privatize the fuel industry. The Htoo Group of

Companies has recently acquired a development project near downtown Yangon to

construct a number of properties including a four-star hotel, an apartment complex, shop

houses, and a shopping mall, on a 21.9 acre site. Air Bagan, with 12 aircraft, is one of

the best performing local airlines in Myanmar, but has branding perception problems by

Myanmar’s public. As a result, Htoo has launched another new airline known as Asian

Wings Airways with 4 aircraft. Htoo owns two airbus aircraft for domestic and overseas

routes (Chaing Mai and Buddha Gaya). All Nippon Airways announced in 2013 that it

would purchase a 49% stake in Asian Wings Airways for around 3 billion Japanese yen,

the first foreign investment in a Myanmar-based airline since democratization. The Htoo

Group's main strategic focus is on the trading, construction and real estate, airlines,

banking, and tourism sectors.

3.2 The Kanbawza Group of Companies

The Kanbawza Group is also a well-known local conglomerate. U Aung Ko Win, also

known as Saya Kyaung, is Chairman of the Kanbawza Group. He was a school teacher

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who rose to wealth via strong connections with Gen. Maung Aye, former Vice chairman

of the State Peace and Development Council (SPDC). U Aung Ko Win started in

business with support from the military leaders during the 1990s, when he struck it rich

by gaining access to rich sapphire and ruby mines. His ties with the top ruling junta

were strengthened by his marriage to Daw Nan Than Htwe, the niece of former

Secretary 3 of the junta, Lt. Gen. Win Myint. He is also engaged in the agriculture

business and served as the President of the Myanmar Billion Group, Nilayoma Co., Ltd.,

East Yoma Co., Ltd., and the Kanbawza Hospital in Taunggyi, Shan State. He is also

the agent for London Cigarettes for the Shan and Kayah States. The Kanbawza Group

was chosen for the Best Corporate Governance award for 2013 by the World Finance

Magazine, which is the first time in the history of Myanmar’s companies. The group

includes various businesses such as construction, garments, insurance, banking, oil,

communications, cement, aviation, and mining. There are altogether 11 subsidiaries and

the major subsidiaries of the KBZ Group include Air KBZ, Myanmar Airways

International, the Kanbawza Bank, and IKBZ insurance. The Kanbawza Bank, which is

the flagship subsidiary of the Kanbawza Group, is the number one income tax payer for

2012-2013. U Min Htut, Director-General of the Ministry of Finance and Revenue, said

the Kanbawza Bank earned over 10 billion Kyat (US$10 million) last fiscal year with

tax levied at 25 percent on net profits (DVB, 2013). U Aung Ko Win's Kanbawza

Group's main business segment is undoubtedly banking and finance. He founded the

Kanbawza Bank Limited (KBZ Bank), now the largest private bank with over 130

branches in Myanmar. It was also one of the first private commercial banks in Myanmar

founded in Taunggyi, Shan State. At that time, it was one of five major private

commercial banks in Myanmar (Myanmar Universal Bank, Yoma Bank, Myanmar May

Flower Bank, and the Asia Wealth Bank are the others). It won the “Best Commercial

Bank in Myanmar” and “Best Banking Group in Myanmar” awards for 2013. The

Kanbawza Bank declared US$10 million in total net profits in 2012-2013 (DVB, 2013).

Moving to the airline industry, on 1 April 2011, the bank launched Air KBZ, one of the

four privately owned domestic airlines in Myanmar, with plans to expand to

international flights in the near future. Air KBZ has a fleet six of 6 aircraft with 1 on

order, and flies to 14 destinations locally. The Kanbawza Group also holds stakes in

another airlines, MAI. In 2010, the then government of Myanmar sold an 80% stake in

MAI to Kanbawza Bank Ltd. and 20% is retained by the state-owned domestic carrier,

Myanmar Airways. It has currently a fleet size of 7 aircraft flying to 12 destinations

locally and abroad. Kanbawza also has fuel pumping stations operating across major

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cities in Myanmar. The Kanbawza Group also owns IKBZ Insurance Co. Ltd. The

Kanbawza Group's main strategic focus is in the banking, finance, and airline sectors.

3.3 The Max Myanmar Group of Companies

The Max Myanmar Group was first founded in the early 1990s by U Zaw Zaw. U Zaw

Zaw is one of the well-known Myanmar business tycoons/cronies in the country and

Chairman of the Max Myanmar Group of Companies, a major conglomerate with

interests in the timber, gems, construction, mechanical engineering, transportation, hotel

and tourism, rubber plantations, and banking industries. He also serves as the Chairman

of the Myanmar Football Federation. He is also an AFC Exco Member and the

Chairman of AFC Organizing Committee for Youth Competition. The Max Myanmar

Group of Companies was originally established as Max Myanmar Co., Ltd. in 1993 and

now, the company has expanded into a conglomerate with 9 subsidiary firms. It started

operation by importing buses from Japan, simultaneously with the import of generators

and earth-moving equipment and machinery. Through an aggressive growth strategy,

the company expanded steadily and diversified into other business sectors and industries.

In 2010, the ruling junta oversaw a rush of privatizations before handing power to a

nominally civilian government. Max Myanmar acquired 12 gas stations, part of the land

for the coming Novotel hotel, and a banking license for the Ayeyawaddy Bank, putting

U Zaw Zaw in good position to capitalize on the ensuing opening of Myanmar's

economy. Recently, U Zaw Zaw, without success, tried to bypass US sanctions by

involvement in a process known as a reverse takeover of a Singapore company called

the Aussino Group Ltd. The process, known as a reverse takeover or reverse merger, in

which a private company (Max Group of Companies) merges with a publicly traded

shell (Aussino Group Ltd. of Singapore) to gain access to capital markets. Aussino

would buy U Zaw Zaw's Max Strategic Investments Pte. Ltd.—a holding company set

up to run the conglomerate's gas-station operations—by issuing 70 million Singapore

dollars, or roughly US$55 million in new shares to the Max Myanmar Group of

Companies. Eventually, this plan was rejected by the Singapore Stock Exchange. Max

Myanmar Co., Ltd. is principally engaged in the business of trading, mainly in the

supply of private and commercial vehicles and heavy machinery. The company is the

sole distributor in Myanmar for the Japanese brand of “Airman” generators. In the

construction sector, the company is participating in the Yangon Nay Pyi Taw

Expressway construction project and the government’s ministry buildings in Nay Pyi

Taw. Max was awarded almost all the construction projects for the stadia and

gymnasiums for the 2013 South East Asia Games. In hotel and tourism, the group has a

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total of three hotels in operation, namely, the Hotel Max Chaung Tha Beach, the Royal

Kumudra Hotel, and the Landmark Hotel. The growth strategy of the Max Myanmar

Group is to open more hotels and resorts in key cities and become the owner of the

largest chain of hotels in Myanmar. One of the most recent ventures of the Group was

the acquisition of a 5,000 acre rubber plantation project in 2005. In the near future, its

aim is to participate in the manufacturing of tires and related products.

3.4 The Asia World Group of CompaniesU Tun Myint Naing (alias Steven Law and

Lo Ping Zhong) is the Managing Director of the Asia World Group of Companies. Born

in 1958, he is the son of the late Lo Hsing Han, the infamous drug lord and Chairman of

Asia World. Asia World Co., Ltd. was founded on June 5, 1992 with strong financial

backing, and engages in a broad range of business activities. Steven Law married

Singaporean Cecilia Ng, a business partner, in 1995. In 1996, Asia World's Lo Hsing

Han created a joint venture with Shangri-La Hotels and Resorts' Robert Kuok to build

the Traders Hotel in Yangon, in which Asia World holds a 10% stake. There are three

"Overseas branch companies" of Asia World in Singapore run by Steven Law and his

wife. More than half of Singapore’s investment in Myanmar goes through partnerships

with Asia World, totaling more than US$1.3 billion. U Tun Myint Naing is still on the

US sanctions list. According to some sources, Asia World is Myanmar's largest

conglomerate although it has fewer subsidiaries, only six companies, compared to its

counterparts. However, it is also the most diversified with interests in industrial

development, construction, transportation, import-export, and a local supermarket chain,

in contrast to the Htoo Group of Companies (Asia Times, 2009). The Asia World Co.,

Ltd. was one of two major contractors (the other being the Htoo Group of Companies)

to build the country's new capital at Nay Pyi Taw, including the National Landmark

Garden (The Myanmar Times, 2009). The company, with the technical assistance of

Singaporean firm CPG Consultants, was also responsible for developing and

constructing the Nay Pyi Taw International Airport, which opened on 19 December

2011 (The Myanmar Times, 2011). Asia World is currently operating the Nay Pyi Taw

Airport. In Yangon, the company has stakes in supermarkets, office towers,

condominiums, and road construction projects. In 2011, it partnered with the Yangon

City Development Committee to construct the extension of Strand Road. The company

is also involved in garments, paper mills, palm oil, and infrastructure development. Asia

World has also operated a port in Yangon's Ahlone Township since 2000. There are

three wharfs controlled by the Asia World Port Management Co., Ltd. and they are the

No. (1) Wharf with quay length 198M, No. (2) Wharf with quay length 156M and No.

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(3) Wharf with quay length 260M, and total container storage capacity of 4,651 TEUs.

In December 2010, Asia World was granted a contract to build 13 jetties at the Thilawa

and Yangon ports. Asia World is one of 18 Myanmar firms involved in the development

of the 50,000 acre (20,000 ha) Thilawa Special Economic Zone near Yangon (Weekly

Eleven, 2012). In August 2011, Asia World was one of four companies granted

government licenses to import and sell fuel in the country, together with the Htoo Group

of Companies. In August 2013, Asia World was granted permission to distribute

electricity to 37 townships in the Eastern Bago Region. The company is one of 20

private enterprises recently granted permission by Myanmar's government and President

Thein Sein to supply electricity to 84 townships in other states and regions (Eleven

Myanmar, 2013). Asia World Industries Ltd. produces co-extrusion CPP film, CPP

metalized film, and flexible packaging film bags used for packing consumer products

and the company provides and services advanced technology machines for extrusion,

metalizing, printing, dry-laminating, slitting, cutting, and bag-making. The company's

major export markets are the Asian countries, Australia, the USA, and Europe. Asia

World established one of the first major chains of cold-storage supermarkets in Yangon,

which is the Asia Light Supermarket chain, during the early 1990s. Under the former

junta, Asia World Energy Ltd. partnered with the China Power Investment Corporation

to build controversial dams (including the Mytisone Dam) along the Irrawaddy River in

Kachin State. The Myitsone Dam project has been suspended by President Thein Sein's

government. In September 2012, Asia Mega Link Ltd., a subsidiary of Asia World, was

granted a joint venture with the Myanmar Post and Telecommunications Department to

sell cellular phone SIM cards.

3.5 The IGE Group of Companies

IGE is one of the top five conglomerates in Myanmar with just 8 subsidiaries employing

3,000 people. Former Minister U Aung Thaung's sons, U Nay Aung and U Pyi Aung,

founded the IGE Company Ltd. in Myanmar in 1994. The company’s registration in

Singapore in 2001 serves as an umbrella firm for subsidiaries engaged in the timber, oil,

gas, electricity, banking, hotel, telecommunications, and construction sectors through its

subsidiary firms. Aung Yee Phyo Co. Ltd, an affiliate of IGE, is much smaller and is

involved in agricultural production and timber trading. UNOG Co. Ltd., established in

2000, deals in the import/export of chemicals, electrical and power generating products,

steel, and plastics. IGE was established in 1994 and registered in Singapore in 2001,

when the company opened its office in Shenton Way, Singapore. However, despite its

smaller size, it is still one of the top conglomerates in Myanmar with a successful

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business as a major supplier of materials used in the construction of electrical

substations and transmission lines, and sells equipment and machinery to both private-

and public-sector companies in the oil and gas industry. It also provides compressed

natural gas (CNG) filling stations for government projects. The company exports rice

and imports machinery and spare parts for electricity generating projects, as well as

steel, fertilizers, and chemicals. IGE subsidiaries also include a bank, hotels, a telecom

company, and a trading company etc. The rise of U Nay Aung and IGE could not have

happened without the influence and support of his father, Minister U Aung Thaung. IGE

is the second largest timber company in Myanmar, earning more than US$75 million in

2007. A revealing US diplomatic cable quotes a Rangoon-based businessman as stating

that both men “Have used their family connections and close ties to the regime to amass

great wealth”.

3.6 The Shwe Taung Group of Companies

Founded in 1990, the Shwe Taung Group (STG) of Companies' core business sectors

include real estate, construction and engineering, cement and construction materials,

energy, infrastructure, trading, retailing, and hospitality. It has 10 subsidiary companies

engaged in these sectors. Aik Htun currently serves as Chairman of Shwe Taung Group

of Companies. He was born on 10 October 1948 in Mongkai in the Southern Shan

States, the eldest of six children. The Olympic Construction Company was established

in 1990 and focuses primarily on residential and hotel development in Yangon, and was

one of the largest construction companies at that time. He and his family members were

subject to European Union sanctions, due to benefiting from close ties with the previous

junta, the SPDC. The Olympic Construction Company was renamed the Shwe Taung

Group in 2004, after money laundering accusations and drug links by the US

Department of the Treasury against its affiliated Asia Wealth Bank. As of 2013, Aik

Htun remains the Chairman of the Shwe Taung Group of companies. STG is one of the

country’s largest employers with a workforce of more than 5,000. The company

achieved an annual revenue of $300 million in 2012. STG has plans to invest about

US$500 million in expansion over five years, focusing on property, shopping

complexes, and office towers, and the Shwe Taung Group is interested in partnering

with investors from Thailand and other countries (Irrawaddy.org, 2013). Prominent

subsidiary companies include Shwe Taung Development Company, Octagon

International Co., Ltd., and Octagon International Services Co., Ltd., Shwe Taung

Cement, and Future Energy, etc. One of its subsidiaries, the Shwe Taung Development

Company has more than 20 years of experience in the design, development, and

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construction of real estate projects in Myanmar. From 1992 until today, the company

has developed over 788 acres of land, including thousands of residential and

commercial properties. It manages a diverse portfolio of residential developments,

including the Malikha Garden housing project, the Central Area Development Project,

May Kha Home Place, and the Twin Centro Condo. STG also manages the Junction

Centre Group, which has a portfolio comprising 4 shopping centres in Yangon -

Junction Center: 8 Mile, Maw Tin, Zawana, and the Junction Square and 1 Shopping

Centre in Nay Pyi Taw – Junction Center Nay Pyi Taw. The Junction Shopping Centre

Group has developed, owns, and manages 612,358 sq. ft. retail space in total. Another

subsidiary, the Octagon International Co., Ltd., provides logistical services and has

formed alliances with Sin Main Pte. Ltd., A.T. Global Investment Pte. Ltd., Builders

International Trading Co., Ltd., and Sin Main Guangzhou Trading Co., Ltd., located in

major Asian cities such as Bangkok, Singapore and Guangzhou etc. The Octagon

International Services Co. Ltd. is the local distributor and dealer for Scania and Liebherr

vehicles in Myanmar and offers a wide range of products under these brands and

organizes sales, rentals, and after-sales services. It imports Scania buses and coaches for

transport companies and individual clients, as well as heavy trucks for construction,

mining, and the power generating sector. Liebherr’s heavy machines such as cranes,

excavators, dozers, multi-wheel loaders, truck mixers, concrete mixing plants, and

industrial machines, are available for sale and lease. OIS has undertaken projects such

as the Yangon-Mandalay Highway Project, Nay Pyi Taw Road Project, Pathein-Monya

Highway Project, Sagaing-Monywa-Shwebo Road, Upper Paung Laung Hydropower

Project, Baluchaung (3) Project, Tha Htay Chaung Project, Sai Din Project, and the

Shwe Li (3) Project etc. Shwe Taung Development Pte., Ltd. ventured into a cement

manufacturing project, later known as the Pyi Nyaung project, and in 2008

commissioned a 700 tpd wet process clinker production plant in Tharzi Township with

permission granted by the Ministry of Mining. In 2010, the company formed the Shwe

Taung Cement Co., Ltd. (STC) to implement this project. Fortunately, the original

permit was upgraded to a 1000 tpd dry process clinker production plant. The core

activities of the company include exploration mining for cement raw materials, and

production and distribution of cement, with a planned annual production capacity of

450,000 tons. STG has also ventured into the insurance business and manages the Grand

Guardian Insurance Public Co., Ltd., which is a public company.

3.7 The SPA/FMI Group

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Serge Pun, alias U Thein Wai, is the founder of the SPA/FMI Group of Companies. He

was born in Myanmar in 1953 and moved with his family at the age of 11 in 1963 to

China during General Ne Win's Socialist Government's reprisals against foreign

residents in Burma at that time. In 1983, after working in the property industry for many

years, he founded the Serge Pun & Associates (SPA) Group in Hong Kong as a real

estate developer. Serge Pun & Associates (Myanmar) Ltd. (SPA) was founded in 1991

by Serge Pun as an investment holding and operating company pursuing various key

manufacturing and service sectors. Currently, there are 30 operating companies within

SPA, which includes its flagships, the First Myanmar Investment Co. Ltd. (FMI), a

Myanmar Public Company, and Yoma Strategic Holdings Ltd. (YSHL), a Singapore

Exchange Main Board Listed Company. Serge Pun was ranked #38 in Singapore's

Richest 50 in the August 2013 issue of Forbes Asia, with a net worth of USD $500

million (Forbes Asia, 2013). The First Myanmar Investment (FMI) Group of Companies

is the only public (sells shares to the general public) “Top group” conglomerate and it is

engaged in 8 core sectors with 25 subsidiaries (amongst the largest)- automobiles, real

estate, retailing, services, luxury tourism, agriculture, and financial services. FMI is the

flagship company of the SPA Group. Established in 1992, FMI was one of Myanmar’s

earliest public companies. With over 4,700 individual shareholders, FMI is an

investment holding company that boasts a balanced portfolio of investments in seven

different spheres of business. Real estate is FMI's main business in Myanmar. Although

FMI's real estate assets only accounted for 31% of total assets in 2012, the real estate

sector contributed 87% of revenue (Thura Swiss, 2013). Three properties contribute to

the bulk of FMI's real estate revenue, and they are FMI City, Star City and FMI Centre.

FMI City, located on a 465 acre site at the outskirts of Yangon, was developed

throughout the 1990s. For the automobile industry, SPA Motors is in the business of

servicing Nissan, Suzuki, and other Japanese made vehicles in Myanmar. With the

relaxation of car import restrictions by Myanmar, SPA Motors has now experienced

increased demand for its business operations. The company declared a K200 million

dividend to FMI in 2012 and expectations for 2013 remain high. Successful Goal

Trading is the sole distributor of China-made Dongfeng trucks in Myanmar. The

operation started in 2010. Convenience Prosperity Company was set up in 2012 to

import and distribute New Holland tractors in Myanmar. Yoma Yarza Manufacturing

started out as a motorcycle manufacturing company but now it has switched to the

importing business. The company imports Dayang brand motorcycles. FMI signed a

MoU with Japan's Hino Motors in 2012 to open Hino service stations in Myanmar. On

the other hand, FMI also owns and manages the Yoma Bank, with 46 branches across

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the country. The group also owns the Pun Hlaing International Hospital, which was a

struggling service-providing subsidiary, and after years of cost-cutting and shutting

down unused wings of the hospital, it is now at least cash positive, but it is yet to return

a profit.

3.8 The International Beverages Trading Company (IBTC) Group

IBTC was established in 1995 with just 50 employees and has launched its first brands

such as Grand Royal Whisky and Royal Dry Gin. Aung Moe Kyaw is the son-in-law of

Thein Tun (also known as Pepsi Thein Tun, who brought Pepsi to Myanmar in 1991,

and is now the Chairperson of Myanmar Golden Star, a group of 13 companies

employing 4500 staff). In 1997, the Hlegu Distillery was opened to increase the

production and expansion of bottling capacity. In 2000, IBTC opened its Mandalay

factory to cater for demand in Upper Myanmar. In 2001 and 2002, IBTC introduced

Eagle Whisky and Grand Royal Special Reserve Whisky to the local market. In 2003,

Shwe Pyi Thar Factory 1 was set up to expand the blending and bottling capacity. In

2009, Shwe Pyi Thar Factory 2 was opened. Some products went through a re-

launching process such as Special Reserve Whisky, Eagle Whisky, Hero Whisky, and

Golden Island Whisky. In 2010, IBTC launched the Jazz wine cooler and the New

Mandalay distillery commenced operations. The International Beverages Trading

Company Limited (IBTC) now has over an 80% share of Myanmar’s whisky market.

The IBTC Group has an annual turnover of US$ 100 million. Looking to change focus

and diversify into other sectors and industries, IBTC has recently signed several high-

profile deals and agreements with prominent multinational corporations. In May 2013,

Alliance Brewery Ltd. (in which Aung Moe Kyaw is a major shareholder) signed a joint

venture agreement with Heineken to distribute Heineken beverages in the local market.

The brewery will be located near the country's capital Yangon and is expected to be

operational by the end of 2014. The joint venture company plans to invest US$60

million in the brewery, create more than 400 jobs and brew leading brands, including

Heineken (Heineken N.V., 2013). In mid-2013, IBTC joined hands with Singapore-

based Jardine Cycle & Carriage (JC&C) to launch showroom and service centers as

Daimler AG, the manufacturer of Mercedes-Benz cars and Fuso trucks, and appointed

JC&C as their authorized distributor and service provider in Myanmar, as the

company’s strategy changes from beverages to trading.

3.9 The Loi Hein Group

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Dr. Sai Sam Htum is the founder and Chairman of Loi Hein Company Ltd., a FMCG

giant engaged in manufacturing, marketing, selling, and distribution of consumer

products in Myanmar since 1996. An ethnic Shan, Dr. Sai Sam Htum earned a medical

degree M.B.B.S in 1971 and his MBA degree from the United States in 2008. He lived

for 5 years in Canada and the United States from 1987-1991, an he returned to

Myanmar in 1992. In 1992, Dr. Sai Sam Htum assisted with the distribution and

marketing of a local cigarette brand – Duya – manufactured by Myanmar Foodstuffs

Industries (MFI). Later, MFI went on to trust Dr. Sai Sam Htum with more consumer

products ranging from soft drinks to beer and rum. He also owns a football club,

Yadanarbon FC, which was formed in 2009. In 1996, the Loi Hein Company Ltd. was

established. In 2000, in association with Osotspa Co., Ltd. (Thailand), the Loi Hein

Company launched the Shark energy drink and quickly gained market leadership.

In 2002, LHC launched its first own brand, Alpine, that quickly became the market

leader in bottled purified drinking water. In 2008, in association with the Green Spot

Co., Ltd. (Thailand), LHC developed and launched a non-carbonated California Orange

soft drink. In 2009 LHC was appointed as the exclusive distributor for the SPY Wine

Cooler manufactured by the Siam Winery Co., Ltd. (Thailand). The Loi Hein Company

Ltd. does not have any subsidiaries, and focus on their product portfolio of six main

product lines, (a) Purified drinking water, (b) Non-carbonated soft drinks, (c)

Carbonated soft drinks, (d) Energy drinks, (e) Wine coolers, and (f) Wine cocktails. Loi

Hein manufactures 3 purified drinking water brands namely Alpine, Life, and Blue

Mountain. In the non-carbonated soft drinks segment, the company produces Boomy

and Greenspot. In the carbonated soft drinks segment, the brands are Lemon Sparkling,

Fantasy, and Blue Mountain. Loi Hein distributes the Shark energy drink in Myanmar,

which is a trademark of the Osotspa Co., Ltd. (Thailand). It also manufactures and

markets Royal Lipo brand energy drinks. In the wine cooler and wine cocktail segments,

the company markets the Spy brand from Thailand. In addition to these six core product

segments, Loi Hein Ltd. also operates the Loi Hein Distribution Company (LHDC).

LHDC is managed as an independent business unit within the Loi Hein Group of

Companies. The company has relationships with wholesalers, hypermarkets,

supermarkets, convenience stores, mini-marts, hotels, restaurants, schools, hospitals,

small retailers, mom-and-pop shops, and kiosks, and LHDC serves over 30,000 outlets

in Myanmar. LHDC's main manufacturing center is located on a 10 acre site 40 minutes

drive North West of Yangon in the area of Htaut Kyant. This state of the art facility

comprises a water processing plant utilizing the latest technology, fully automated

bottling lines for purified drinking water and non-carbonated soft drinks as well as

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integrated high capacity packaging lines. In order to benefit from this strategic

advantage, LHC is in the process of opening representative offices in China and India to

support trading activities in these two major markets. As the country opens up, the

vision is to significantly increase the range and volume of products traded with

neighboring countries.

3.10 The Myanmar Economic Corporation (MEC)

The Myanmar Economic Corporation (MEC) is a holding corporation owned and

operated by Myanmar’s military, similar to the Union of Myanmar Economic Holdings

Ltd. Founded in 1997 under Section 8-A of The State-Owned Economic Enterprises

Law to establish profitable heavy industries to give Myanmar’s military access to

supplies of important raw materials (e.g. cement and rubber). MEC's operations are

shrouded in secrecy (International Crisis Group, 2012). There are altogether 34

subsidiaries under the MEC umbrella. MEC is operated by the Ministry of Defense

Quartermaster’s General Office, with its private shares exclusively owned by active-

duty military personnel. The corporation's capital was established through revenues

generated from the public auction of state-owned enterprises throughout the 1990s. The

Chairman of MEC is Lt. Gen. Wai Lwin and the MD is retired Brig. Gen. Thant Swe.

The MEC’s major business lines are in transportation, trading, services, and mining.

According to a pamphlet produced by the Myanmar Economic Corporation, it has 26

fully running operations and 5 upcoming projects. The MEC is still on the sanctions list

of the US Treasury as of November 2013. The Myanmar Economic Corporation has

recently commissioned production of the country’s first tire factory. The plant, under

construction in Yangon City since late 2010, will have capacity for radial passenger

vehicle and truck/bus tires along with other miscellaneous bias tires, inner tubes, liners,

and bladders, according to the Chinese tire machinery manufacturer Qingdao Mesnac

Co. Ltd., which provided turnkey engineering assistance for the project. The 1.5 million

sq.ft. plant, operating as the Myanmar Economic Corporation Tire Factory—known

locally as the Ywama Tire Factory—will have an estimated annual capacity of 855,000

units, according to local news reports. Mesnac said the company will produce and sell

under the Tristar brand. The Myanmar Economic Corporation (MEC)'s upcoming

projects are to build a (1) Refractory Plant, (2) High Tension Bolts and Nuts Factory,

(3) Cold Rolled Coil, Hot Rolled Coil Reduction, Galvanizing, Color Coating, Forming

Line Plant, and a (4) Direct Reduction Iron (DRI) Plant. Most of the heavy industries

owned by the Ministry of Industry have been transferred to the MEC in the form of a

privatization scheme.

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3.11 The Union of Myanmar Economic Holdings Ltd. (UMEHL)

The Union of Myanmar Economic Holdings Ltd. (UMEHL) was the first business

venture formed by Myanmar’s military after its takeover of the state in 1988. It was

formed in 1990 with an initial capital of $1.6 billion USD under the 1950 Special

Company Act. The UMEHL is a military-managed business entity engaged in small-to-

medium sized commercial enterprises and industries. The UMEHL conglomerate is

jointly owned by two military departments with 40% of the shares owned by the

Directorate of Defense Procurement and 60% owned by active and veteran defense

personnel, including high-ranking military officials of the former ruling military junta,

the State Peace and Development Council (SPDC), and veterans organizations. UMEHL

is exempt from commercial and profit taxes. The conglomerate organizes its affiliated

firms in the form of JVs or partners. UMEHL's main lines of business are

manufacturing, trading, and services. The Union of Myanmar Economic Holdings Ltd.

stands as a formidable military-owned conglomerate and poses a great deal of challenge

and competition not only to local conglomerates but also to foreign firms looking to

invest in Myanmar. With 54 subsidiaries, joint-venture companies, and factories

spanning mining, banking, manufacturing, livestock and fisheries, trading, logistics and

transportation, food and beverages, steel, and pharmaceuticals etc, UMEHL had annual

profits of US$ 48 million USD for the 2010-11 financial year. In the 2000s, several

state-run enterprises including sugar factories were transferred to the control of

UMEHL and MEC. In 2010, UMEHL opened Ruby Mart, a 50,000 square foot

(4,600 m2) 5-storey shopping complex in Yangon's Kyauktada Township, in a building

that once housed the Ministry of Commerce's Myanmar Agricultural Produce Trading.

UMEHL is one of 18 Myanmar firms involved in the development of the 50,000 acre

(20,000 ha) Thilawa Special Economic Zone near Yangon. UMEHL has a monopoly on

several sectors such as gems and jade, cigarettes, etc. and UMEHL has exclusive access

to secure preferential contracts with foreign firms. Most FDI in Myanmar was done

through joint ventures with UMEHL during the SPDC government era. Its subsidiaries

include Bandoola Transportation, Myawaddy Trading, Five Stars Ship Company,

Myawaddy Bank, Myawaddy Tours and Travel, Myawaddy Enterprises Group, jade

mines in the Kachin State and ruby and sapphire mines in Shan State, etc.

4. Sources of Growth and Key Success Factors of the Top Business Groups

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4.1 Government support and special rights

The conglomerates could not have achieved immense growth and rapid business success

without the support and encouragement, and also the provision of special rights, of the

military government, named the State Law and Order Restoration Council (SLORC)

(1988-1997) and later changed to the State Peace and Development Council (SPDC)

(1997-2011). It is also alleged that the top leaders of the former junta have their own

favorite businessmen or cronies in these top groups. They would assign them to

implement infrastructure projects such as by allowing timber concessions and special

import rights (car permits, palm oil, diesel, etc,) and certain business privileges. On the

other hand, some lucrative businesses were allowed to be operated only by the military-

owned conglomerate UMEHL. These successes were fueled by the ruling government

itself, as during this period the ruling junta did not allow foreign direct investment in

key sectors, thus creating more business chances and opportunities for local

conglomerates as any foreign and international competition was virtually non-existent.

Top groups would enjoy a monopoly over certain markets and they would also enjoy

reaping the economic benefits of being the market innovator. With blessing from the top

leaders of the military, certain businessmen, or known notoriously as cronies, rose to

fame and fortune quickly within two decades. Most top groups enjoyed tax privileges as

the tax officers dared not touch the top groups. Therefore, during the SLORC and SPDC

era, the business of Myanmar’s conglomerates was highly dependent on the

government’s regulations and licensing. This was especially true for certain

commodities such as wood, rice, gems, oil, and gas etc. These are typically regulated

businesses and some conglomerates received favorable treatment to access special rights

to export them to foreign countries. Htoo Trading Co. of the Htoo Group of Companies

was especially prominent for accessing special teak exports under the military junta.

According to the export data, in 2011-2012, the country exported 371,000 metric tons of

teak and 1,789,400 metric tons of hardwood. Total value and volume of wood and

wood-based products was nearly $685 million and 4,295,788 TNE respectively. Htoo

Trading exported 73,060 TNE of wood and wood based products worth about $34.90

million. Looking at the rice sector data, the Myanmar Economic Corporation has been

the number one exporter of rice since 2008, with the exception of 2011 when it was

second. In 2008, the MEC exported 111,393 TNE of rice valued at $34.41 million. In

2012, the volume rose to 175,552 TNE of rice worth about $60 million. Rice exports

have been increasing steadily over the last few years. In 2008, the Htoo Group's Ayer

Shwe Wah Co. Ltd. made it into the top ten list of rice exporters with 25,149 TNE of

rice exported and valued at $3.07 million. However, in later years, the company did not

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even appear in the listing. The export of Myanmar’s gems such as rubies and jade was

also monopolized heavily by the military and a few businessmen or cronies during the

SPDC rule. According to official data from the Central Statistical Organization,

Myanmar produced over 43.18 million kilos of jade, 1.06 million carats of ruby, and

1.45 million carats of sapphire, among other precious stones in fiscal 2011/12. Foreign

firms are not allowed to extract jade in Myanmar. But as mining is capital intensive and

thus needs assistance from major corporations, 20 or so of the largest operations in

Hpakant are owned by Chinese companies or their proxies say industry insiders. Other

players include the Union of Myanmar Economic Holdings Ltd. (UMEHL), the

investment arm of the country's military, and Myanmar tycoons such as U Zaw Zaw, the

Chairman of Max Myanmar, who made fortunes collaborating with the former junta

(Reuters, 2013). Under the former military junta, the rules for importing vehicles were

strict and vehicle importation was only handled by a handful of entities that had special

rights. Nowadays, under President Thein Sein's government, the vehicle import rules

and regulations have been relaxed. Because of the previous import restrictions, vehicle

prices in Myanmar were tremendously over-priced and inflated. From 2008 until 2010,

the Union of Myanmar Economic Holdings Ltd. (UMEHL) was the top car importer in

Myanmar importing nearly 1,500 cars during these years.

4.2 Contact with foreign partners

Among the top conglomerates, Asia World, Shwe Taung and UMEHL were linked with

Chinese businesses and others have partners in other countries. Myanmar’s top groups

of companies and conglomerates have enjoyed tremendous growth and success because

of these business relationships with foreign partners during the past two decades.

Considering the fact that foreign direct investment was not allowed during the military

regime period (1988-2011), the economy was hit hard, with inflation averaging around

30.1% from 2000 to 2007, and all fundamental market institutions were suppressed

without any free and fair competition. Now that the new civilian government under

President Thein Sein has encouraged economic liberalization policies and allowed

foreign direct investment and Myanmar's markets have become more open and dynamic,

and the local conglomerates will continue their business success with the support of

foreign partners and business institutions. According to Notification 11/2013 for foreign

direct investment, joint ventures cannot give the foreign participants more than 80% of

the equity. Thus, Myanmar nationals need to hold a minimum of 20% of the investment.

The Notification prescribes a wide range of activities that require joint venture status

with Myanmar nationals. Moreover, as most sanctions and trade restriction imposed by

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western governments have been lifted it is now more flexible and convenient to conduct

trade transactions and export/import activities with western countries. Foreign direct

investments are not allowed for the trading and retail sectors. Foreign firms looking to

invest in Myanmar need local partners and the top business groups become the major

partners.

4.3 Conglomerates in Myanmar’s economic growth

Myanmar’s economy has been growing steadily since 2005 when the government

moved the capital from Yangon to Nay Pyi Taw. Building Nay Pyi Taw from 2005 to

2010 along with other infrastructure projects across the country pushed the growth of

the conglomerates enormously. Myanmar’s GDP grew an estimated 6.3–6.5 percent in

the fiscal year ending March 2013 (FY 2012-13), and the pace is expected to quicken to

6.5–6.75 percent in FY 2013-14—the fastest in Southeast Asia (ADB, 2013). Growth is

projected to be driven by a robust increase in domestic consumption and investment, as

well as exports. Natural gas production, which accounts for nearly 41 percent of total

exports (gas export to Thailand is over US$ 3 billion a year), will likely be the foremost

growth driver. Gas exports to China and Thailand could rise significantly in 2013-14 as

two major offshore gas fields become operational. Jade exports became the second

largest export item from 2010-2012 with another US$ 3 billion. In addition, trade

should get a boost with the duty- and quota-free access that Myanmar’s exports received

from the European Union in July 2013. Tourism is also trending sharply upward, with

international visitor numbers and revenue increasing 1.5 times in FY 2012-13 and

exceeding one million visitors and $500 million of revenue respectively (Myanmar

Ministry of Hotels and Tourism, 2012). All this economic growth is expected to spur

government revenues and keep the fiscal deficit close to the 5 percent target despite

rising expenditure on health and education. As Myanmar’s economy grows, the local

top groups will ride on the wave of success and further increase their profits and expand

their business empires, however, the same is not necessarily true vice versa.

4.4 Conglomerates and going public

Among the conglomerates, the FMI Group is the only public company group, and the

other groups have a few public companies. In February 2013, the Asian Green

Development (AGD) Bank, owned by U Tay Za's Htoo Group of Companies received

approval from the Directorate of Investment and Companies Administration to become

a public company. AGD has also announced that it plans to turn itself into a public

company and sell shares to the public. The Loi Hein Group of Companies with

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USD$ 100 million annual revenue will become a public company in the next three years

(The Myanmar Times, 2011). Loi Hein is planning to register on the Myanmar Stock

Exchange in 2015, either publicly or as an IPO [initial public offering]. Other groups

show no inclination to go public except for some insurance companies.

4.5 Future projects and strategies of the conglomerates

Historically, some conglomerates gained business growth and achieved success through

focusing on just one or two sectors at first and later diversifying into other sectors.

Some conglomerates are rather secretive with their future projects, whereas others are

more open and have released press statements accordingly. The Htoo Group of

Companies has recently acquired a development project near downtown Yangon to

construct a number of properties as mentioned previously. The Shwe Taung Group of

Companies' future projects and activities are often reported by Myanmar’s media. As

construction is one of the Shwe Taung Group's core business activities, the company

will develop new infrastructure projects in Yangon in the near future. First of all, the

Shwe Taung Development Co., Ltd (a subsidiary of the Shwe Taung Group) will

collaborate with IGE and the Yangon City Development Council to develop two low-

cost housing projects with 17,000 apartment rooms on a 220-acre site in Yangon. The

same company will also develop new buildings on the site of the former New Bogyoke

Market and construct 23-floor, 25-floor, and 28-floor shopping centres, office

complexes, and hotels etc. in downtown Yangon. It will also construct 15-floor, 19-floor,

and 22-floor buildings near Junction Square (also on land owned by Shwe Taung).

Moreover, Shwe Taung is also involved in the construction of the Traders Square

Commercial Complex annex where a new 20-floor building is currently under

construction. MIC has also recently granted Shwe Taung Energy Services Co. Ltd.

permission to operate environmentally-safe gas storage tanks on a BOT system.

Myanmar’s cement industry has a huge growth potential, as local supply still cannot

meet the local demand. Three of the top groups have plans to construct three cement

factories across Myanmar in the Yangon Region. Thailand's SCG Company has already

announced that they will build a cement factory in Myanmar, and to get ahead of the

competition from foreign companies, the Htoo Group, Kanbawza Group, and Shwe

Taung Group will construct three cement factories with a production capacity of 1,000

tons daily. The cement industry and construction materials are two of the industries that

conglomerates can enter in the next few years. Another is the insurance sector. The

majority of conglomerates such as the Htoo Group, Kanbawza Group, IGE, and Shwe

Taung Group have already established insurance companies after the Myanmar

159

government allowed private insurance companies for the first time since 1962.

Moreover, there is also potential for the air travel sector. The FMI Group has plans to

establish its own airline to fly domestic routes. Currently, the group does not have any

aircraft and thus leases aircraft from Myanmar Airways to fly the Yangon-Mandalay

route. FMI has also recently entered into important joint venture agreements, which will

enable the conglomerate to help diversify further its business activities and enter high

growth industries in Myanmar. The FMI Group has recently taken a 10% stake in a joint

venture with Parkson Retail Asia and opened Myanmar's first Parkson Department Store

at the FMI Centre in downtown Yangon. FMI together with Yoma Strategic Holdings

(both affiliates of the Serge Pun and Associates Group), set up Chindwin Holdings in

early 2013 to serve as a subsidiary company for the tourism business in Myanmar.

Chindwin Holdings has already acquired Shwe Lay Tagun, which is the popular hot air

balloon operator of “Balloons over Bagan”. It has also acquired a 21 acre site for a hotel

construction project in Bagan. Moreover, FMI and Yoma Strategic established a joint

venture agreement in early 2013 to service Mitsubishi brand vehicles in Myanmar

known as Myanmar Motors Pte., Ltd. FMI also has upcoming property development

projects. One is the Riverside Development Project on a 12 acre site on the bank of the

Hlaing River in Yangon's Hlaing Thar Yar township near FMI City. FMI is also

undertaking one of the biggest redevelopment projects in Yangon's history, The

Landmark Development Project. When finished, it will encompass 10 acres in the

middle of downtown Yangon. This project includes the old Burma Railway Company

that will be transformed into a 5-star boutique hotel and the current Grand Meeyahta

building will be demolished to make way for an office/residential complex. Beverage

giants IBTC, facing tough competition from foreign conglomerates, entered the

Myanmar market recently, and has plans to diversify into other sectors. Recently, IBTC

has entered into a joint venture agreement with The Jardine Cycle & Carriage Company

of Singapore to become the authorized dealer for Mercedes Benz and Mitsubishi Fuso

in Myanmar. The resulting company is the Cycle & Carriage Automobile Co., Ltd.,

which has concluded a joint venture with the Mazda Motor Corporation from Japan to

open Mazda car showrooms in Myanmar. All the conglomerates keep an eye on

Thilawa’s SEZ projects and they have already occupied jetty and wharf facilities. They

will participate in the Thilawa consortium. The Myanmar Economic Corporation’s

(MEC) upcoming projects are to build a (1) Refractory Plant, (2) High Tension Bolts

and Nuts Factory, (3) Cold Rolled Coil, Hot Rolled Coil Reduction, Galvanizing, Color

Coating, Forming Line Plant and a (4) Direct Reduction Iron (DRI) Plant.

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4.6 Degree of cronies

Based on the above information, selected conglomerates were researched to explore

their overall performance by evaluating the sources of growth and key success factors,

such as their connection with the military government, foreign contacts, involvement in

strategic sectors, competence, and the impact from sanctions. Sources of growth and the

degree of crony influence can be found in Table 4.1. Htoo, Max, Kanbawza, and IGE

have a high degree of crony influence and sanctions have affected these conglomerates

and the military supported/owned MEC and UMEHL.

Table 3

5. Constraints to Growth

5.1 Market openness

Open markets and free and fair competition might not have necessarily influenced the

growth of the conglomerates, as during the former junta’s rule Myanmar’s economy

was only partially open and competition was neither free nor fair, since free market

institutions were prohibited. Moreover, market openness under the military government

was not necessarily crucial to a local conglomerate's success in Myanmar because the

connections and relationships with the right individuals were more important. However,

the second market openness in 2011 under the new government has created constraints

for the conglomerates as most government projects have to be transparent and some

projects require international tenders.

5.2 Media monitoring

Under the former military rule, several laws were passed to suppress the media’s

freedom and to control further dissemination of information in Myanmar. There were

certain boards and committees in charge of censoring during this time, such as the Press

Scrutiny and Registration Division in the Ministry of Information, which censored all

forms of media, ranging from publications such as newspapers and magazines and other

published content like books. Since the reforms took place however, press censorship

was eliminated, which led to an increased number of newspapers, magazines, and

journals in the market. Previously, there were only three state-owned newspapers during

the SPDC rule but now, there are an additional 20 private newspapers. The number of

weekly journals has also increased from about 150 previously to 200 titles now.

161

Furthermore, there are around 90 monthly magazine titles (up from 60 previously). The

rise of the printed media, encouraged by the elimination of censorship, allows

journalists from the private media to monitor the business activities and projects of the

conglomerates, thus allowing Myanmar’s public to become more familiar with the top

groups. Some printed media even held interviews and talk sessions with the

owners/founders of these groups leading to less alienation and animosity towards them

by the public. Some of these 'cronies' became literally celebrated figures on some

Facebook pages! The use of Facebook and social media has also increased in Myanmar

together with the relaxation of internet censorship and the development of the IT

infrastructure in the country. The total number of Facebook users in Myanmar is now

more than 1 million (Myanmar Computer Professionals Association, 2013).

5.3 Regulatory control in the reform process

The economic landscape of Myanmar has become dynamic and competitive after

President Thein Sein's liberalization of economic policies. The reform process

encourages good governance, clean governance, corporate governance, and the rule of

law. These changing trends act as both an opportunity and threat to local conglomerates.

The influence of parliament on the Union government and its ministries limits the

opportunities for the conglomerates as well.

5.4 Competition by local and foreign players

Perhaps the most powerful force for market constraint comes from the intense

competition between local and foreign players. Some conglomerates such as Loi Hein

have already started to battle with international beverage giants such as Coca-Cola and

Pepsi through their JV with local partners.

Without doubt, the rest of the local top group companies cannot compete effectively

with Loi Hein's products, especially in beverages. Few are even engaged in the same

business segments. IBTC, another top group company, is involved in the manufacturing

and marketing of alcoholic beverages so it is not a direct competitor for Loi Hein Ltd.

What Loi Hein has to worry about is the intense competition it is facing from

international soft-drinks brands such as Coca-Cola, Pepsi, Sunkist, Sprite etc., which

have recently re-entered Myanmar through joint-ventures with local corporations. In the

past, most of these products were imported into Myanmar through border trade (most

illegally) but the prices were high, and that often put off local consumers. In June 2013,

a year after the vast majority of American sanctions were lifted, Coca-Cola entered the

market through a joint-venture with local bottler Pinya Manufacturing Co., pledging to

162

invest $200 million in domestic manufacturing plants over the next five years. The

group’s Star Cola, once the leading cola brand in the country, has now already been

displaced in terms of market share by two overseas brands, Coca-Cola and PepsiCo

Inc.’s Pepsi (The Wall Street Journal, 2013). Loi Hein tries to maintain its position as

"secure" amid the renewed competition in Myanmar's soft-drinks market. Moreover, Loi

Hein will have to work with a big partner to support it financially. It is now planning a

huge expansion into banking, insurance, property development, and the oil and gas

sector. Most top groups see no advantage from the coming ASEAN Economic

Community (AEC), due for launch in 2015. Other ASEAN countries, such as Thailand,

Malaysia and Vietnam, stand to benefit more, and they will have to compete with

neighboring countries in business. Some groups are looking at diversification options in

the near future. The Department of Energy Planning has issued the latest list in mid-

2013 of over 100 local companies who have registered at the Department to invest in

the oil and gas sector. The conglomerates already have a head-start in Myanmar’s

market since almost all of them have been around for two decades and thus they have

already established a market presence, gained market share, achieved the economies of

scale, reduced or totally eliminated learning curves, and formed crucial relationships

with local business stakeholders. However, in terms of financial capacity, they will face

strong competition from international conglomerates that often have stronger financial

muscle compared to the local conglomerates. It is getting tougher for the local

conglomerates as the big multinationals establish a presence in Myanmar, because they

are more powerful and stronger in terms of several capacities (The Wall Street Journal,

2013). Another worry for local firms is that multinational corporations have regional

ties and networks in the Southeast Asian countries neighboring on Myanmar,

particularly in Thailand, which would allow them to quickly engulf local competition.

Here are some examples of foreign conglomerates entering Myanmar during the last

couple of years. SK Group, one of the five largest conglomerates in South Korea, has

entered the construction industry in Myanmar. Other South Korean firms such as

Samsung, LG, Hyundai, and POSCO have already stepped into the Myanmar market.

5.5 Sanctions

Sanctions may act as a constraint to growth of the conglomerates however. Since

President Thein Sein took office, sanctions have been removed gradually by the western

governments’ welcome of the government's political and economic reforms and

encouraging further economic growth. Australia was one of the first western oriented

countries to lift sanctions targeted against Myanmar in mid-2012. In April 2013, the

163

European Union agreed to lift all sanctions on Myanmar, except for the arms embargo.

The move took place a year after suspending them in response to a dramatic series of

reforms put in place since Myanmar's military stepped aside and a quasi-civilian

government was installed in 2011. However, the governments of these countries will

discontinue the policy of both neither encouraging nor discouraging trade and

investment, thus opening up more opportunities. The US has suspended broad

restrictions on investment and trade with Burma. It still forbids imports of rubies and

jade from Burma, and doing business with military-owned companies. But the

restriction with the greatest impact for investors is against dealings with individuals and

companies on the Treasury Department’s Specially Designated Nationals list, which

identifies those linked to sanctioned governments, terrorists, and drug traffickers.

Australia’s sanctions list named 392 individuals, before it was repealed in June 2012.

The EU listed 656 individuals and companies, plus another 1,207 companies in the

timber, metals, and gem industries, the money-makers for the military that were banned

to European investors. The EU suspended its restrictions a year ago, then lifted them

entirely in April, 2013 (The Irrawaddy, 2013). President Barack Obama's administration

has lifted some sanctions targeted against Myanmar and welcomed the reforms. In May

2013 the United States lifted another set of sanctions against Myanmar to support

reforms in the formerly army-ruled country, while retaining visa and investment bans

against individuals accused of human rights abuses. Thus, the owners/founders and their

family members of some of the conglomerates are still on the United States’ sanctions

list, such as U Tay Za of the Htoo Group, and U Tun Myint Naing of Asia World,

according to the website of the US Department of the Treasury. All in all, because of

certain loopholes combined with the lifting of sanctions against Myanmar the local

tycoons will not pose a significant risk to the growth of the conglomerates in the coming

future. However, certain trade restrictions remain such as the United States still bans the

import of rubies and gems from Myanmar. Moreover, the United States prohibits

investment in military entities owned by Myanmar’s armed forces or its Ministry of

Defense.

6. Conclusion and Recommendations

Local conglomerates have played a significant role in Myanmar’s economy for two

decades. Although they were not the true engines of growth for the economy, they still

had strengths unavailable elsewhere and were the only organizations to accomplish the

164

tasks assigned, especially in heavily invested infrastructure projects that were nil or low

return projects. The previous military government had to support them in return. Thus

they are not just political cronies. The conglomerates will continue to play a big and

important role in the development and growth of Myanmar’s economy within the

coming years because as they expand, more jobs will be created and the amount of taxes

paid to the government will also increase.

The economic reforms are the fuel for long-term economic success and many people

across the country stand to benefit, but those who profited most from the old regime’s

restrictions and privileges will lose access to windfall profits and guaranteed

monopolies in the future. The crony businessmen, the military, and the party elite will

still do well but will need to play by new rules, handle domestic and foreign competition,

and even pay taxes. With limited options, the cronies are trying to distance themselves

from their murky past and rebrand themselves as valuable contributors to the new

economy. There are other top group conglomerates, which are not included in this

report, and which are also important to note. These include for instance the Shwe Than

Lwin Group, Capital Group, Dagon International Group, and the Eden Group etc. Many

of these conglomerates have already started looking for, and some have signed

agreements and joint ventures with foreign conglomerates and corporations, and so they

are set to grow rapidly in the future. The following policies are recommended for all

stakeholders, government, conglomerates, and foreign investors, to make best use of the

strengths of the conglomerates for business success and economic growth.

1) Myanmar’s government should encourage local conglomerates to become more

involved in industrial sectors rather than lucrative trading and exploration of

natural resources and raw unprocessed minerals and gems. It is much better to

start with heavy industry and large-scale manufacturing to connect with the

regional production networks. The government should create a level playing

field for locals who have competence in the first phase, and all investors, both

locals and FDI, in the second phase.

2) Conglomerates should focus more on the manufacturing and service sectors to

become real engines of growth for the country. Conglomerates need to be

involved in the regional and international markets and the production networks.

They should start value-added manufacturing by utilizing SMEs as supporting

industries. They should also plan to go public to be ready for the upcoming stock

exchange and capital markets. Conglomerates should be models for CSR

(Corporate Social Responsibility).

165

3) As conglomerates are potential local partners, foreign investors should join

hands with them for win-win opportunities.

4) The remaining sanctions and restrictions against Myanmar by international

governments should be lifted totally, including those imposed on the

conglomerates, in order to help achieve the ongoing reform process.

166

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Table 1

Top income tax payers list in 2012-13

Position Company Name Group of Company

Line of Business

1 Kanbawza Bank Ltd Kanbawza Banking

2 Myanmar Brewery Co;Ltd UMEHL Production

3 Int'l Beverages Trading Co;Ltd IBTC Trading

5 Shwe Taung Development Co;Ltd Shwe Taung Trading

7 Max (Myanmar) Construction Co;Ltd Max Construction

8 Dagon Beverage Co;Ltd MEC Production

10 Asia World Co;Ltd Asia World Trading

13 Htoo Construction Development Group Co;Ltd Htoo Construction

18 Elite Tech IT Services Co;Ltd Htoo Services

48 Rothmans of Pall Mall Myanmar Pte; Ltd UMEHL Production

51 International Group Of Entrepreneur Co;Ltd IGE Trading

69 Htoo Trading Co;Ltd Htoo Trading

72 Ayeyarwady Bank Ltd Max Banking

109 SPA Project Management Co;Ltd FMI Construction

122 FMI Syndication Ltd FMI Services

123 Asia World Industries Ltd Asia World Production

133 Max (Myanmar) Gems & Jewellery Co;Ltd Max Gems

138 Elite Tech Manufacturing Co;Ltd Htoo Industrial / Production

290 Max (Myanmar) Hotel Co;Ltd Max Hotel

365 Asia Green Development Bank Ltd Htoo Banking

424 Elite Group Co;Ltd Htoo Trading

Source: Internal Revenue Department

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Table 2

Top commercial taxpayers list in 2012-13

Position Company Name Group of Company

Line of Business

1 Myanmar Brewery Ltd UMEHL Production

2 Rothmans of Pall Mall Myanmar Pte.,Ltd UMEHL Production

3 Dagon Beverage Co;Ltd MEC Production

4 International Beverage Co;Ltd IBTC Trading

9 Max (Myanmar) Manufacturing Co;Ltd Max Manufacturing

13 The First Automotive Co;Ltd MEC Production

14 Elite Tech IT Services Co;Ltd Htoo Services

27 Shwe Taung Energy Co;Ltd Shwe Taung Trading

31 Myanmar Treasure Hotel & Resort Group Co;Ltd

Htoo Hotel

37 HtooTrading Co;Ltd Htoo Trading

38 PRA FMI Pansea Hotel Co;Ltd FMI Hotel

41 Air Kanbawza Co;Ltd Kanbawza Services

54 Max (Myanmar)Hotel Co;Ltd Max Hotel

67 Yoma Yarzar Manufacturing Co;Ltd FMI Production

82 Asia World Industries Co;Ltd Asia World Production

175 Shwe Taung Development Co;Ltd Shwe Taung Trading

270 Elite Tech Manufacturing Co;Ltd Htoo Industrial

/Production

327 Htoo International Industry Group Co;Ltd Htoo Production

408 Max (Myanmar) Gems & Jewellery Co;Ltd Max Gems

445 Htoo Construction Development Co;Ltd Htoo Construction

Source: Internal Revenue Department

171

Table 3

Assessment of sources of growth and degree of cronies

Sr Name of

conglomerates

Connection to military

government

Foreign contact (China)

Foreign contact (other countries)

Strategic sectors

Competence (management

skill)

Competence (capacity)

No Sanction impact

Degree of cronies

1 Htoo Group

2 Max Group

3 Kanbawza Group

4 Asia World

5 IGE

6 Shwe Taung

7 FMI

8 IBTC

9 Loi Hein

10 MEC

11 UMEHL

Rating

Small scale

Medium scale

Large scale

None

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