Learning To Live With The Neighbors

[Jai Dee]

Learning to Live with the Neighbors

Burma rolled out the red carpet for Thailand’s visiting supreme commander Boonsang Niempradit in late January. The Thai general met top leaders of the Burmese junta, Snr-Gen Than Shwe and his two deputies, Vice Snr-Gen Maung Aye and the man tipped to become head of the armed forces, Gen Thura Shwe Mann.

The purpose of Gen Boonsang’s one-day trip was to discuss cooperation on narcotics issues, according to Thai sources. Thai residents living in Rangoon might find relations between the two military juntas are returning to normal in spite of previous hiccups and occasional border conflicts.

Since the September coup that ousted Thailand’s Prime Minister Thaksin Shinawatra and his government, Burmese generals may feel comfortable that Thailand now is ruled by a military junta. But ironically, Thaksin was also accused of forging business ties with the ruling generals in Burma.

So far, there has been no dramatic shift in Thai policy towards Burma, apart from an assurance from Prime Minister Gen Surayud Chulanont that his administration would honor the business contracts and deals made by Thaksin’s government. Nevertheless, the new Thai government is reviewing a loan to the Burmese government by Thailand’s Exim Bank.

In 2005, the Thaksin cabinet approved many government-to-government projects with Burma. Thailand became the top investor in Burma in the fiscal year 2006—$6.03 billion in the energy sector alone out of a total $6.07 billion, a huge rise from the previous year’s $158.3 million, according to Ministry of National Planning and Economic Development statistics.

For Thais living in Burma it’s business as usual. About 500 Thais live in Rangoon, many of them married to Burmese. Their business interests run from restaurants to jade trading, from construction to hotel ownership and management. Thanks to a “constructive engagement” policy with Burma, Thai business there is expanding.

Thanyaporn Jittrong, who sells automobile spare parts in Rangoon, said visa regulations that had made trading difficult over the past 10 years had now been relaxed. Some special tax and investment conditions for foreign investors had also been eased, she said.

Business people say it’s also easier to travel around the country now, particularly in Mon State, where foreigners had previously been banned from entering many areas.

The tourism sector is also steadily becoming more profitable. Nearly 20,000 Thais visited Burma last year, and numbers are expected to increase following the recent release of an epic trilogy relating a colorful era of Thai-Burmese relations, reviving the Thai public’s interest in Burma.

Thailand is even making inroads into Burmese cuisine, and Thai restaurants in Rangoon report good business. “Sabai Sabai” on Dhammazedi Road, “Pattaya” and “APK” near Bogyoke Aung San market, have been joined by popular coffee outlets such as Black Canyon in front of the Yangon International Hotel. There’s also a Black Canyon in Mandalay, and both coffee shops are a favorite meeting place for professionals and business people.

The Thai owner of a popular Thai restaurant in Rangoon, married to a Burmese woman, said Rangoon was overcoming its reputation as an unsafe city. “Actually there are just a few crime cases compared to Bangkok.”

Hotels owned and run by Thais include the luxurious Kandawgyi Palace Hotel, the Nikko Royal Lake and the Dusit Inya Lake Resort.

Thai products, especially cosmetics and consumer goods, are popular among Burmese, who generally prefer them to Chinese and Burmese brands. A Thai cosmetics dealer said the Burmese government had imposed restrictions on the importation of such Thai products as clothes and cosmetics in an effort to achieve a favorable balance of trade. Demand for Thai goods remained high, however, because Burmese consumers found them to be of better quality.

On a wider scale, Thais have their eyes on Burma’s abundant natural resources—gas, timber and water.

Matayawongse Amatyakul, director of the office of commercial affairs at Thailand’s Rangoon embassy, told The Irrawaddy that Burma is not only a market but also a gateway to the bigger markets in China and India, opening up great opportunities for Thai investors. Special economic zone projects along Burma’s borders with China and India would also benefit Thailand, he said.

Trade would also improve the political climate between neighbors, said Matayawongse. Politics, however, is an area Thai business people in Burma studiously stay clear of.

Thaniya Phasuk, a jade trader whose father started a family business in Burma 20 years ago, advises: “You can do everything in Burma—just avoid politics.”

Source: The Irrawaddy - 09 February 2007