Reshuffle puts 'right person in right place': government
Reshuffle puts 'right person in right place': government
Reshuffle puts 'right person in right place': government
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24 Bus<strong>in</strong>ess THE MYANMAR TIMES JULY 29 - AUGUST 4, 2013<br />
TRADE MARK CAUTION<br />
DIAGEO KOREA Co., Ltd, a company <strong>in</strong>corporated<br />
under the laws of Republic of Korea, and hav<strong>in</strong>g its<br />
pr<strong>in</strong>cipal place of bus<strong>in</strong>ess at 7-2, Gobaik-Ii, Boobaleup,<br />
Icheon, Republic of Korea, is the Owner and Sole<br />
Proprietor of the follow<strong>in</strong>g Trademark:-<br />
WINDSOR<br />
Word Block Letters<br />
Reg. No. 4/4290/2013<br />
<strong>in</strong> respect of “Class 33: Alcoholic beverages (except<br />
beers).”<br />
Any fraudulent imitation or unauthorized use of the said<br />
Trademark will be dealt with accord<strong>in</strong>g to law.<br />
U Chit Swe, Advocate<br />
U Kyaw Moe Htet, Attorney at Law<br />
U Nyunt T<strong>in</strong> Associates International Limited,<br />
Intellectual Property Division<br />
Tel: 959 4500 59 247-8, Email: <strong>in</strong>fo@untlaw.com<br />
Partnership <strong>in</strong> practice with<br />
Ms. Saowaluck Lamlert, Attorney at Law<br />
Siam Premier International Law Office Limited<br />
Email: saowalck@siamlaw.co.th<br />
For DIAGEO KOREA Co., Ltd<br />
Dated: 29 th July, 2013.<br />
DESIGN CAUTION<br />
Diageo Brands B.V., a company <strong>in</strong>corporated under the<br />
laws of The Netherlands and hav<strong>in</strong>g its pr<strong>in</strong>cipal place<br />
of bus<strong>in</strong>ess at Molenwerf 10-12, 1014 BG Amsterdam,<br />
the Netherlands, is the Owner and Sole Proprietor of<br />
the follow<strong>in</strong>g Designs <strong>in</strong> (7) different views:-<br />
Gem Lab eyes ‘Ruby Land’<br />
A FOREIGN company is work<strong>in</strong>g<br />
to br<strong>in</strong>g <strong>in</strong>ternational test<strong>in</strong>g<br />
standards to Myanmar’s<br />
gem <strong>in</strong>dustry – and provide<br />
recognised quality certificates<br />
to boost prices.<br />
Gubel<strong>in</strong> Gem Lab, a Swiss<br />
company that has a regional<br />
office <strong>in</strong> Hong Kong, sent foreign<br />
gemologists to Mogok,<br />
known as “Ruby Land”, <strong>in</strong><br />
early July to test gemstones <strong>in</strong><br />
the area, which has previously<br />
been off-limits to foreigners.<br />
“After the <strong>government</strong> allowed<br />
foreigners <strong>in</strong>to Mogok<br />
<strong>in</strong> April we received permission<br />
for our technicians to go<br />
<strong>in</strong>to the area,” said Ko Hpone-<br />
Phyo Kan-Nyunt, a Gubel<strong>in</strong><br />
Gem Lab gemologist.<br />
The company has already<br />
sent stones back to its ma<strong>in</strong><br />
lab <strong>in</strong> Hong Kong and will announce<br />
their quality soon.<br />
“There is no database of<br />
Myanmar gemstones at our<br />
lab, which is why we wanted<br />
to do our own sampl<strong>in</strong>g and<br />
test<strong>in</strong>g,” Ko Hpone-Phyo Kan-<br />
Nyunt said.<br />
The company also held<br />
sem<strong>in</strong>ars on gems and test<strong>in</strong>g<br />
<strong>in</strong> Mandalay and Yangon<br />
on July 20 and 21 at which its<br />
experts made presentations<br />
about gems and gem labs, said<br />
sem<strong>in</strong>ar organiser Ko Ko Myo.<br />
A gem trader exam<strong>in</strong>es a n<strong>in</strong>e-stone r<strong>in</strong>g. Photo: Staff<br />
Lore Kiefert, a chief gemologist<br />
at Gubel<strong>in</strong>, said Myanmar’s<br />
rubies are rated the best<br />
<strong>in</strong> the world and its sapphires<br />
second best.<br />
Ko Hpone-Phyo Kan-Nyunt<br />
said Myanmar needs better<br />
labs to certify the quality of<br />
stones m<strong>in</strong>ed here.<br />
“Myanmar’s gemologists<br />
are good at test<strong>in</strong>g but our<br />
test<strong>in</strong>g facilities do not meet<br />
<strong>in</strong>ternational standards,” he<br />
said.<br />
“When traders sell stones,<br />
foreign buyers often ask for<br />
certificates, which cannot be<br />
provided. This leaves the quality<br />
of stones – and the <strong>in</strong>dustry<br />
– a little uncerta<strong>in</strong> and lowers<br />
prices.”<br />
Kyaw Thu, owner of a gem<br />
lab at FMI Centre, said Myanmar<br />
needs top-quality labs<br />
to certify its stones <strong>in</strong> an <strong>in</strong>creas<strong>in</strong>gly<br />
competitive market.<br />
“When we sell gems <strong>in</strong>ternationally<br />
we need quality certificates,”<br />
he said.<br />
“Many gemstones are<br />
m<strong>in</strong>ed <strong>in</strong> parts of Africa and<br />
Vietnam that are quite similar<br />
to ours but not quite as good.<br />
If we don’t have certificates,<br />
then we won’t earn the same<br />
prices.”<br />
Gubel<strong>in</strong> plans to open a<br />
mobile lab <strong>in</strong> Myanmar.<br />
Damp demand hits car show<br />
AYE NYEIN WIN ayenye<strong>in</strong>w<strong>in</strong>.mcm@gmail.com<br />
MONSOON ra<strong>in</strong>s drowned out possible car sales<br />
at a July 20-23 show at Tatmadaw Hall <strong>in</strong> Yangon.<br />
The show was <strong>in</strong>tended to allow car showrooms<br />
to offer discounts <strong>in</strong> the hope of mak<strong>in</strong>g<br />
quick sales after several lean months.<br />
“This is the fourth car show we’ve participated<br />
<strong>in</strong>,” said Ko Zar Ni, manag<strong>in</strong>g director of Afreen<br />
Auto Service. “But because of the weather we were<br />
only able to sell four cars. Normally we can put lots<br />
of cars <strong>in</strong> the hall’s compound but that wasn’t possible<br />
this time because of the ra<strong>in</strong>s, and not many<br />
buyers turned up either.”<br />
Other car traders said constant changes to import<br />
policies, fluctuat<strong>in</strong>g exchange rates and ever<br />
worsen<strong>in</strong>g traffic are reduc<strong>in</strong>g demand.<br />
Ko W<strong>in</strong> Ko, from W<strong>in</strong> Ko Services Co, said he<br />
had expected sales at the show to be limited.<br />
“We did not sell as many cars as we have <strong>in</strong> previous<br />
events, <strong>in</strong> part because not many customers<br />
came,” he said. “It ra<strong>in</strong>ed for most of the four days,<br />
but I only participated <strong>in</strong> this event to advertise my<br />
company and did not expect to make many sales.”<br />
Ma Shwe S<strong>in</strong> W<strong>in</strong>, director of event organiser<br />
Smart Bus<strong>in</strong>ess Group, said participat<strong>in</strong>g <strong>in</strong> shows<br />
is good for bus<strong>in</strong>ess even if showroom owners do<br />
not sell vehicles.<br />
“Even if people don’t buy on the spot, if they see<br />
a car they like they often approach the centre later,<br />
so it’s good advertis<strong>in</strong>g for the companies that take<br />
part,” she said.<br />
BRIEFS<br />
Mandalay<br />
Waso robe prices surge<br />
Japanese-made cotton robes<br />
have been <strong>in</strong> high demand <strong>in</strong><br />
Mandalay s<strong>in</strong>ce the start of the<br />
Waso religious festival, when<br />
they are traditionally donated to<br />
monks, accord<strong>in</strong>g to sellers.<br />
Last year, cheaply priced<br />
Thai- and Ch<strong>in</strong>ese-made robes<br />
found greatest favour with<br />
buyers, but this year Japanese<br />
brands such as 555 and 777 are<br />
attract<strong>in</strong>g the most attention,<br />
said Daw Htay Htay Y<strong>in</strong> of Diamond<br />
and Emerald Robe Shop.<br />
“Sales of Japanese brands<br />
were t<strong>in</strong>y compared with Thai<br />
and Ch<strong>in</strong>ese brands last year,”<br />
she said. “But this year buyers’<br />
appetites have shifted to<br />
high quality brands – and the<br />
Japanese-made robes are light<br />
and easy to dry.”<br />
She expects to sell about<br />
10,000 robes dur<strong>in</strong>g the festival,<br />
which started on July 22 and<br />
ends on August 21.<br />
“This year we even have cotton<br />
robes made <strong>in</strong> Italy that cost<br />
K45,000.” – Aung Ye Thw<strong>in</strong>,<br />
Translated by Zar Zar Soe<br />
Yangon<br />
Tips for fish exporters<br />
American non-profit W<strong>in</strong>rock<br />
International is offer<strong>in</strong>g<br />
Myanmar fish farmers practical<br />
advice on how to market their<br />
products <strong>in</strong> the European and<br />
US markets, accord<strong>in</strong>g to a<br />
spokes<strong>person</strong> for the Myanmar<br />
Fisheries Federation.<br />
The program is funded by<br />
the United States Agency for<br />
International Development, said<br />
Daw Toe Nandar T<strong>in</strong>, executive<br />
committee member of the<br />
federation. The <strong>in</strong>itial focus is<br />
tilapia, with tra<strong>in</strong><strong>in</strong>g already<br />
offered on breed<strong>in</strong>g and rais<strong>in</strong>g<br />
the species. Potential exporters<br />
are now receiv<strong>in</strong>g tips on how to<br />
enter the EU and US markets,<br />
Daw Toe Nandar T<strong>in</strong> said.<br />
Burt Hick, an American<br />
volunteer <strong>in</strong> the program, said<br />
Myanmar fisheries exports to<br />
the US were massive before<br />
sanctions blocked them almost<br />
a decade ago. – Myat Nye<strong>in</strong> Aye<br />
TANQUERAY Bottle (2009) Version<br />
Reg. No. 4/4257/2013<br />
<strong>in</strong> respect of “ Class 33: Alcoholic beverages (except<br />
beers).”<br />
Any fraudulent imitation or unauthorized use of the said<br />
Designs will be dealt with accord<strong>in</strong>g to law.<br />
U Chit Swe, Advocate<br />
U Kyaw Moe Htet, Attorney at Law<br />
U Nyunt T<strong>in</strong> Associates International Limited,<br />
Intellectual Property Division<br />
Tel: 959 4500 59 247-8, Email: <strong>in</strong>fo@untlaw.com<br />
Partnership <strong>in</strong> practice with<br />
Ms. Saowaluck Lamlert, Attorney at Law<br />
Siam Premier International Law Office Limited<br />
Email: saowalck@siamlaw.co.th<br />
For Diageo Brands B.V.<br />
Dated: 29 th July, 2013.<br />
SEBASTIAN PAWLITA<br />
sebastian@pwplegal.com<br />
KYAW ZAI YA<br />
kyaw@pwplegal.com<br />
THE new Central Bank Law aims at establish<strong>in</strong>g<br />
a central bank free from <strong>government</strong><br />
<strong>in</strong>terference. Nevertheless, the owner<br />
of the central bank is, as <strong>in</strong> other jurisdictions,<br />
the state. The authorised capital is<br />
set at K300 billion of which the state is<br />
supposed to pay up K100 billion. This is a<br />
steep <strong>in</strong>crease; the old Central Bank Law<br />
of 1990 provided for an authorised capital<br />
of K500 million and for a paid-up capital<br />
of K200 million. The central bank is to<br />
pay (probably <strong>in</strong> addition to the paid-up<br />
capital) 40pc of its annual profit <strong>in</strong>to a general<br />
reserve until the amount of the paidup<br />
capital is reached.<br />
Typically, central banks make profits by<br />
charg<strong>in</strong>g <strong>in</strong>terest on loans granted to the<br />
<strong>government</strong> and to commercial banks and<br />
by hav<strong>in</strong>g <strong>in</strong>terest-bear<strong>in</strong>g foreign currency<br />
securities <strong>in</strong> their portfolio.<br />
The new Central Bank Law was signed<br />
by the president on July 11 and took effect<br />
immediately. There is no timel<strong>in</strong>e for the<br />
establishment of the new central bank.<br />
However, the president may determ<strong>in</strong>e<br />
a “transitory period” of up to one year to<br />
The F<strong>in</strong>e Pr<strong>in</strong>t<br />
Legal & tax <strong>in</strong>sight<br />
New bank law may spur confidence<br />
“enable necessary negotiations”. The directors<br />
of the present central bank shall cont<strong>in</strong>ue<br />
their operations until their responsibilities<br />
are handed over to the new board<br />
of directors.<br />
The goals of the central bank are the<br />
stability of money, the stability of the bank<strong>in</strong>g<br />
system and the development of effective<br />
payment systems. Furthermore, it is<br />
to support the <strong>government</strong>’s general fiscal<br />
policy <strong>in</strong> order to create a vibrant economy,<br />
though it rema<strong>in</strong>s to be seen if this goal<br />
will have any impact on the central bank’s<br />
<strong>in</strong>dependence.<br />
Central banks all over the world are<br />
charged with keep<strong>in</strong>g money stable. Simply<br />
put, they <strong>in</strong>fluence <strong>in</strong>flation by adjust<strong>in</strong>g<br />
the <strong>in</strong>terest rate at which commercial<br />
banks can borrow money from them.<br />
In a cash-based society like Myanmar,<br />
however, the effect of <strong>in</strong>terest rates on the<br />
<strong>in</strong>flation is not very pronounced. In terms<br />
of <strong>in</strong>flation control, the exchange rate of<br />
the local currency to the dollar is probably<br />
far more important. Of course, the<br />
exchange rate as such only <strong>in</strong>fluences the<br />
price of imported goods and services and<br />
has noth<strong>in</strong>g to do with, for example, soar<strong>in</strong>g<br />
real estate prices or ris<strong>in</strong>g wages.<br />
However, the exchange rate is a highprofile<br />
figure, and if the market exchange<br />
rate is stable, people probably <strong>right</strong>fully<br />
expect their sav<strong>in</strong>gs <strong>in</strong> the local currency to<br />
reta<strong>in</strong> their value.<br />
As <strong>in</strong> many other countries, the foreign<br />
exchange regime is decided on by the <strong>government</strong><br />
and implemented by the central<br />
bank. Presently, Myanmar has adopted a<br />
managed float system <strong>in</strong> which the central<br />
bank holds daily auctions of foreign exchange.<br />
Money changers may set their exchange<br />
rate with<strong>in</strong> a range of plus or m<strong>in</strong>us<br />
0.8 percent of the auction price.<br />
The central bank may <strong>in</strong>tervene (“manage<br />
the float”) to keep the exchange rate at<br />
a desirable level. In <strong>in</strong>ternational practice,<br />
such <strong>in</strong>terventions are usually done by central<br />
banks buy<strong>in</strong>g foreign exchange, or sell<strong>in</strong>g<br />
part of their foreign reserves.<br />
The central bank is charged with assur<strong>in</strong>g<br />
the stability of the bank<strong>in</strong>g sector by<br />
licens<strong>in</strong>g commercial banks and supervis<strong>in</strong>g<br />
them. In a society like Myanmar, where<br />
lack of trust <strong>in</strong> banks still prevents people<br />
from channel<strong>in</strong>g money through them,<br />
a central bank that is perceived to be <strong>in</strong>dependent<br />
is an important tool to <strong>in</strong>still<br />
confidence.<br />
Sebastian Pawlita and Kyaw Zai Ya are<br />
consultants at Polatri W<strong>in</strong>t & Partners Legal<br />
and Tax Advisors <strong>in</strong> Yangon.