Japan still cautious over investing

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Subject: Japan still cautious over investing in Myanmar

The Daily Yomiuri, Friday March 1, 1996
Japan still cautious over investing in Myanmar
By Takashi Sakamoto
Yomiuri Shimbun Staff Writer

	Japanese companies, lacking government support in the form of official=20
development assistance, lag far behind companies in other countries in tr=
ade and=20
investment activities in Myanmar, sometimes called =93the last economic f=
rontier=20
in Southeast Asia.=94
	The governmentremains reluctant to fully resume ODA in Myanmar, due=20
chiefly to the slow process of democractization in the military-ruled nat=
ion.=20
The gap in interest between Japan and countries became evident during a r=
ecent=20
symposium held jointly by the U.N. Economic and Social Commission for Asi=
a and=20
the Pacific and the Japanese Foreign Ministry in Yangon. More than 100=20
government officials and bussiness leaders from eight countries, includin=
g=20
Japan, participated in the January event, which focused on economic=20
liberalization.
	Myanmar=92s annual economic growth has been averaging 5 percent to 10=20
percent over the past several years after Myanmar=92s military regime shi=
fted to a=20
policy of economic reform. Such high economic growth has been backed by a=
ctive=20
foreign investment and trade centering on Myanmar=92s rich mineral resour=
ces and=20
tourism industry. Symposium participants said they welcome these developm=
ents=20
describing Myanmar as a market with great potential for trade and investm=
ent.=20
Among those applauding Myanmar=92s  potential were delegates from China a=
nd India,=20
countries that share borders with Myanmar.
	=93China continued economic aid to Myanmar while Western countries impos=
ed=20
economic santions,=94 a Chinese official said. =93India will linked to So=
utheast=20
Asian countries via Myanmar in the future,=94 an Indian official said. Bo=
th=20
statements reflected the active trade and investment policies that China =
and=20
India have with Myanmar. In contrast, Japanese representatives at the sym=
posium=20
remained cautious. At a reception the night before the opening of the sym=
posium,=20
Japanese Ambassador to Yangon Yoichi Yamaguchi said: =93Japanese corporat=
ions are=20
called =91NATO=92 in Myanmar. It stands for =91No Action, Talking Only.=92=
 That means=20
that there have been a lot of bussiness talks that fell short of turning =
in to=20
contracts.=94
	Indeed, Japan lags behind not only Asian countries but also the United=20
States and European nations in term of investment in Myanmar. As of the e=
nd of=20
last November, Japan placed eighth, following such countries as Singapore=
,=20
Thailand, Britain, Hongkong and the United States in the number of invest=
ment=20
approved by the Myanmar government. In terms of the value of the investme=
nt,=20
Japan ranked seventh.
	The biggest reason for this lies in the fact that Japanese government is=
=20
holding back full restoration of ODA to Myanmar. Kazuo Haruna, Chairman o=
f=20
Marubeni Corp., has called on the Japanese government to fully resume ODA=
,=20
including yen credits, to Myanmar. He also wants to see Myanmar take furt=
her=20
steps toward democratization-the key factor for Japan to resume ODA-infor=
mation=20
disclosure and deregulation. Haruna, who also chairs the Study Group of M=
yanmar=20
of the Japan Federation of Economic Organizations  (Keidanren), said: =93=
Most=20
Japanese corporations are hoping that Japanese ODA related projects would=
 pave=20
the way for Japanese bussiness to expand their opportunities in Myanmar.=94
	Full resumption of ODA would not immediately result in greater Japanese=20
bussiness opportunities in Myanmar, but it would have favorable psycholog=
ical=20
effects on Japanese corporations. A top executive of a major Japanese tra=
ding=20
house said, =93After all, everything depends whether or not the governmen=
t resumes=20
ODA.=94
	Mean while, in a separate, new move, a Japanese corporation has closed a=
=20
contract with the Myanmar government, totaling several billions of yen. T=
here =20
are growing calls among Japanese corporations not to miss the bus on Myan=
mar.

( Note-- Japan Companies such as Marubeni are keep pressed on Japanese=20
Government to fully resume ODA to Burma for their benefit only....BYVA )

The Daily Yomiuri, Saturday, February 17 -1996
Japan firms banned from contracts
	Singapore.... An order barring five foreign companies from government=20
contracts for five years after they were named in a bribery case is final=
, the=20
Finance Ministry says. The companies, which weren=92t convicted of wrongd=
oing, are=20
BICC Cables Plc of Britain, Seimens AG of Germany, Pirelli Cables of Ital=
y and=20
Japan=92s Tomen Corp, and Marubeni Corp. Choy Hon Tim, former deputy chie=
f=20
executive of Singapore=92s Public Utilities Board, was convicted last yea=
r of=20
taking 14 million Singapore dollars ( $ 10 million ) from a consultant fo=
r the=20
companies. He gave the consultant, Lee Peng Siong, secret information on =
bidding=20
for power plant construction contracts, according to prosecutors. They sa=
id Lee,=20
who lives in Australia, received 63 million Singapore dollars ( $ 45 mill=
ion )=20
from the five foreign companies between 1983 and 1995. Tomen and Marubeni=
=20
confirm they paid the consultant. Seimens denied paying Choy or any other=
 public=20
officials, and said it didn=92t know the reason for the ban. Pirelli said=
 the ban=20
was groundless.=20

Information committee
Burma Youth Volunteer Association- Japan.