[Myanmar] Irrawaddy Business Roundup (November 23, 2013)

[News_Editor]

Lax Laws Help Tobacco Firms Target Burma’s Appetite for Nicotine

Burma is being targeted as a prime new market for foreign cigarette companies taking advantage of a lack of tobacco control laws that have curbed smoking in many other countries, said a report from Al Jazeera.

The story on the Qatari broadcaster’s website named China’s Hongyun Honghe Tobacco Group, Japan Tobacco International and British American Tobacco among the biggest investors in the sector in Burma.

“Cigarette sales are expected to grow at between 2-3 percent a year for the next four years,†Al Jazeera said, citing research by Euromonitor.

“Activists say between one-third and half of [burma’s] 60 million people consume tobacco in some form,†it said.

China’s largest tobacco manufacturer Hongyun Honghe and its local partner have a factory capable of producing 3 billion cigarettes a year, according to the report.

British American Tobacco, the world’s second-largest cigarette company, “plans to invest US$50m over the next five years, and employ about 400 people. Japan Tobacco International, which is number three globally, says it is in the process of setting up business in the country but declined to comment further,†Al Jazeera reported.

Burma signed the World Health Organisation (WHO) Framework Convention against Tobacco Control in 2004, “but legislation is poorly enforced, and the country has failed to implement some of the WHO’s guidelines,†Al Jazeera said.

Value of Burma’s Gold and Cash Reserves Disclosed for First Time

Burma’s central bank now holds 7.15 tons of gold in reserve, plus foreign cash reserves worth US$8.19 billion, state media announced.

The New Light of Myanmar on Nov. 13 quoted the central bank’s vice governor Khin Saw Oo telling the Naypyidaw Parliament that the gold was held in Burma, while the cash reserves were spread among domestic and banks.

The government does not often disclose details of its financial matters, leading to speculation about where revenues, in particular from lucrative natural gas projects, have ended up.

In September, following reports that the government had $11 billion in Singaporean bank accounts, the Central Bank said that only $7.6 billion was kept “legally†in overseas accounts. In the newer report, Khin Saw Oo said the figure of $8.19 billion was correct at Oct. 29.

Swiss Business Delegation Visits Burma to Assess Investment Prospects

A business delegation from Switzerland led by the state secretary for economic affairs spent two days in Burma this week to look at investment prospects, the Swiss Embassy said.

The visit follows a provisional meeting between the countries to discuss business possibilities earlier this year at the World Economic Forum. Switzerland opened its embassy in Burma only in November 2012.

Aside from seeking potential commercial investment opportunities, the Swiss government “will continue to build schools and health posts in conflict areas in southeast Myanmar [burma], support returning displaced persons and refugees in their re-integration, assist impoverished farmers in accessing better livelihoods,†the Swiss statement said.

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Source: Irrawaddy.org