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Burma Related News



Bangkok Post, 10 March 2000

Junta wage grab hits expatriate Burmese

Citizens required to remit 50% of income

Ralph Bachoe

Cash-strapped Burma has come up with its latest scheme to rake in as much foreign currency as possible to replenish its almost empty coffers.

Burmese citizens working overseas must now remit in foreign exchange 50% of their annual income under a new regulation issued by the Directorate of Labour. This is in addition to annual income tax of 10%.

Originally, the 50% ruling applied only to sailors working on foreign vessels. That has now been cut to 30% with another 10% tax of their gross earnings.

In return for the remittance, the Myanmar (Burma) Foreign Trade Bank will issue the said amount in Foreign Exchange Certificates to the persons concerned-that is the applicant's family or representative through the former's account at the bank.

The FEC rate fluctuates between 325-330 kyat to the US dollar while the black market pays two to three kyat more. The official rate is about six kyat to the dollar.

The three new regulations for registration under the Law Related to Overseas Employment by the directorate comes with many provisions, making it almost impossible to evade.

They affect: A. Those working overseas under their own arrangements who have returned temporarily on leave; B. Those who will go abroad after securing employment; and C. Those applying for passports to work abroad.

Those who apply under categories A and B "shall sign the bond for the following provisions in the presence of two guarantors together with parents or guardians in the presence of an officer from the directorate".

They will "undertake to regularly pay 10% of the income every fiscal year to the Myanmar embassy in the country of employment or in countries where there are no embassies to the Internal Revenue Department through the Myanmar Foreign Trade Bank;"Undertake to legally remit in foreign exchange 50% of the applicant's salary to the applicant's family or representative through the applicant's account at the Myanmar Foreign Trade Bank (the Myanmar Foreign Trade Bank will issue the said amount in FEC to the persons concerned)".

Category C applicants have to produce an original employment letter which has to be endorsed by the embassy in the country concerned, or by a notary public in countries where there are no Burmese embassies.

Workers cleared by the Overseas Employment Registration Screen Board are "required to deposit 200 FEC [dollars] to the Non-Refundable Account of the Directorate of Labour at the Myanmar Foreign Trade Bank in the form of a service fee".

The $200, though, according to Burmese expatriates, could be halved by paying the immigration people $100 to obtain the D, or departure form.

Attached to these new regulations are provisions such as producing proof of leave from the employer and income tax returns during employment, work permit, education clearance (from the Burmese authorities), proof of resignation for government personnel.

The new stipulations have put many expatriates in a dilemma.

Questions have been raised such as: how can I live on half my salary and pay school fees and what if I don't have immediate relatives in Burma.

The most pertinent concerns students with work visas who have come out on Burmese passports. They pay to secure "appointment letters" from so-called "overseas employers" to further studies the junta does not allow.

Some expatriate employees, who still have a few more years before their passports expire, are reluctant to go home. At least for the time being.

The Nation, 11 March 2000

FROM THE EDGE: Japan, Korea take up Burma diplomacy

Burma's military junta is desperate to end Western pressure and the blockade of foreign capital and international aid to the cash-starved country.

Equally frustrated are members of the world community who seem to have exhausted all measures to persuade or force the regime in Rangoon to cede even the slightest political compromise.

For over 10 years, Burma has been a testing ground for two different political approaches. The West, led by the United States and the European Union, has pursued a tough policy of pressure and isolation. Asia led by Asean, on the other hand, has adopted a soft approach under the guise of "constructive engagement".

Both have claimed some minor successes such as the release of pro-democracy leader Aung San Suu Kyi from house arrest and two superficial dialogues between Suu Kyi and the ruling generals, but realistically the two have failed to force tangible democratic reforms and human-rights improvement.

This failure has generally been the result of insincerity and a lack of political will to implement the policies of both parties in their true spirit. Constructive engagement has turned out to be a mere tool for economic engagement, since political engagement constitutes "an interference in domestic affairs" - a principle which Asean has so much guarded against. Isolation has never been truly isolation as the Western countries have turned a blind eye to their national firms investing in Burma on the pretext that "we are not encouraging nor discouraging economic activities in Burma".

The double standard of both the West and Asean plus Japan has played into the hands of Burma's ruling State Peace and Development Council (SPDC), which has over the years shrewdly exploited the lack of a unified universal approach to force political change in Burma.

Meanwhile, international organisations and humanitarian agencies both inside and outside Burma have grown increasingly listless over the sheer lack of global interest in the social dimensions of the country.

They see social disasters looming on many fronts. There has been no proper higher education in Burma since the pro-democracy uprising in 1988. The health system has collapsed, with a severe shortage of medicine and equipment, not to mention doctors, nurses and medical staff. Child mortality and malnutrition, drug addiction, the uncontrollable spread of the HIV virus and other deadly diseases, internal and external migration (either voluntary or forced) and trafficking in women and children are all on the increase.

In pursuit of a workable Burmese political formula to break the deadlock, global political players seem to have overlooked the immediate humanitarian need to cope with these social emergencies.

In October 1998 a new global initiative was adopted by a group of Asian and Western countries at a meeting in England. The United Nations promptly conveyed to Rangoon an offer from the World Bank of US$1 billion in humanitarian and technical assistance in return for democratic and human-rights improvement.

But it did not take long for the SPDC to shoot down the proposal on the grounds that the country "is not a monkey awaiting a hand-out banana".

Since then the international community has been at its wit's end how to break the political deadlock in Burma, said a New York-based senior UN official in a recent interview. While he remained optimistic that changes would take place, he admitted that the UN did not have a new initiative to push the junta into a political dialogue with the NLD.

An option of employing a peace-broker similar to American emissary George Mitchell, who successfully helped broker the Northern Ireland peace process, also ran into the difficulty of finding an influential and respectable person to do the peace brokerage.

In the meantime the overall political, economic and social conditions in the country have grown worse. According to the World Bank's August 1999 draft report "Myanmar-Burma: An Economic and Social Assessment", Burma's economic gains of the past decade have fallen short of meeting the human-development challenge facing the country.

"Poverty is still widespread, and many social indicators show a dismal picture," the report stated. "Reform measures, partial and some reversed, have not been enough to eliminate deep-seated structural distortions and economic imbalances. Liberalisation efforts have stalled in recent years, with persistent delays in pursuing fundamental economic reforms and further deterioration of macroeconomic imbalances."

In recent months there has been growing debate among global aid agencies and relief thinkers that humanitarian assistance should not be held hostage by another party, pending a breakthrough in the political conflicts in Burma. The military junta, the National League for Democracy - which officially won the 1990 general elections but was not allowed to rule - and over a dozen armed ethnic groups should not block or place any conditions on humanitarian aid to the Burmese needy.

Last weekend in South Korea the same group of diplomats and government officials who had met in England in 1998 resumed their talks to assess the overall situation in Burma, to evaluate their $1-billion approach and to seek a new formula to break the political stalemate and end human misery there.

As the $1-billion initiative had been rejected on the grounds of being a haughty Western attempt to use money to buy off the regime, the Seoul meeting came up with a more Asian flavour.

According to a senior Thai official who attended the Korean gathering, there was no tough criticism of the Burmese regime as initially feared. Participants, particularly those from Japan and South Korea, agreed that there was a pressing need for the international community to help Burma develop its human resources and reform its economy.

"Every party involved is concerned about the future of Burma and is looking for a way to help encourage positive development in the country," he said.

Although Japan has not confronted the United States in its tough Burma policy, the Asian economic giant has been supporting the Burmese junta in various UN meetings. Although Tokyo has not resumed its Official Development Assistance (ODA), it has been providing various forms of financial and material aid under humanitarian and technical programmes to Burma. There has been talk that Japan, the single largest aid donor to Burma before 1988, will increase its aid or even resume its ODA to the country.

Although South Korean President Kim Daejung is personally sympathetic to the Burmese democracy movement, he and his country have not publicly condemned the military regime for its harsh crack-down on political dissent. Moreover South Korea has established a large economic presence in Burma over the past decade.

It will not be a surprise if in the coming months Japan and South Korea, with Asean members backstage, play a more active but quiet diplomatic role to persuade the SPDC and the NLD to come to some sort of a peace dialogue. The West was given its chance; now it is the turn of East Asia to perform.

BY Yindee Lertcharoenchok

AFP, 10 March 2000

Myanmar awards US$20m concession contract to Thai firm

Myanmar has awarded a US$20m concession contract for a 221-room hotel to Thai-based Allure Group. The company will construct the hotel along the Thai border, under the build-operate-transfer scheme. The development will be returned to the government in 30 years.