Myanmar says to privatise more stat

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Subject: Myanmar says to privatise more state concerns

Myanmar says to privatise more state concerns
07:05 a.m. Jan 27, 1999 Eastern
YANGON, Jan 27 (Reuters) - Myanmar's military government plans to open up
more state-run enterprises to the private sector, the Myanma News Agency
said on Wednesday.

Senior General Than Shwe, the head of the ruling State Peace and Development
Council, told entrepreneurs in the southern Ayeyawaddy delta region on
Tuesday they would have to take the lead and responsibility for the economy
in future.

``The government will only be giving guidance, control, protection and
assistance,'' the official news agency quoted him as saying.

Than Shwe said the government planned to transfer state-owned concerns such
as textile and sugar mills to the private sector.

He also said it would offer 30-year leases to entrepreneurs wanting to set
up farms of 5,000 acres (2,000 hectares) and larger.

A government official said foreign investors could invest in such projects
through wholly owned or joint ventures by applying to the state investment
commission.

On Monday, the state news agency quoted Lieutenant General Khin Nyunt,
number three in the government and chairman of the privatisation agency, as
saying factories and other enterprises that could not be run effectively by
the state would be transferred to private entrepreneurs.

Myanmar moved away from rigid state control of its economy in 1988 when the
military seized direct control by crushing a nationwide uprising for
democracy.

Many economic sectors have since been opened to private investment, but
agriculture was only recently opened up.

Farming in Myanmar has suffered for decades from a chronic shortage of
investment and lack of incentives. The country used to be one of the world's
major rice exporters but shipments have slowed to a trickle.

According to official statistics, more than 22.5 million acres (9.0 million
hectares) are under cultivation, while another 22 million acres (8.8 million
hectares) are vacant -- either fallow, virgin or wet land.

Tin Htut Oo, a director of the Ministry of Agriculture, told Reuters
recently that about 30 private firms had been permitted to reclaim more than
400,000 acres (160,000 hectares) of wetland in the Ayeyawaddy Divison as

well as in the Yangon, Bago and Magway regions.

The enterprises planned to grow rice and crops like sesame, cotton and
pulses, he said.