TREADING CAREFULLY, BUSINESSMAN SURVIVES WITH

C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 000046

SIPDIS

SIPDIS

STATE FOR EAP/MLS; PACOM FOR FPA, TREASURY FOR OASIA:AJEWELL

E.O. 12958: DECL: 09/21/2016
TAGS: ECON PGOV BM
SUBJECT: TREADING CAREFULLY, BUSINESSMAN SURVIVES WITH
INTEGRITY


RANGOON 00000046 001.2 OF 002


Classified By: Econoff TLManlowe for Reason 1.4 (b,d)


1. (SBU) Summary: To survive in Burma's unpredictable, unfair
and complicated business environment, local business reps
must stay flexible and well informed. Dr. Maung Maung Lay is
an unusual example of a respected business leader who is
accepted by regime leaders, even though he criticizes their
policies. Maung Maung Lay participates in
government-controlled commercial activities as necessary for
his business, but has maintained his integrity and used the
press to gently chide the GOB and complain about restrictive
policies. End summary.


2. (U) A medical doctor who worked in clinics from 1976-1988,
Dr. Maung Maung Lay, 56, no longer has an active practice,
but offers free medical consultations to anyone who requests
it. From 1976 to 1992, Maung Maung Lay was a consultant for
multinational (including American) pharmaceutical firms, and
in 1993 opened his own company, Ni Lay Naing, Co., to import
and distribute pharmaceutical products. His was one of only
ten companies nationwide that imported medicines from
overseas.


3. (SBU) On December 19, Maung Maung Lay launched a line of
herbal medicinal products, made from Burmese herbs and
prepared according to Chinese recipes in his own factory.
Six years ago, he told us, the GOB prohibited local firms
from making any Western-type over-the-counter drugs, because
they "were not up to Burmese standards." He wanted a
supplement to his import business because of the cost,
unpredictability and expense of the import license process.


4. (U) In 1999, Maung Maung Lay became Chairman of the
Myanmar Pharmaceutical and Medical Equipment Entrepreneurs
Association and a member of the Central Executive Committee
of the Union of Myanmar Federation of Chambers of Commerce
and Industry (UMFCCI). In 2001, he became Joint Secretary
(1) of the UMFCCI. He has acted as an interpreter for the
Deputy Minister of Commerce on two visits to Vietnam. He is
on the Board of Directors of the Greater Mekong Subregion
Business Forum and is a member of the East-West Economic
Corridor effort. He also sits on the ASEAN Business Advisory
Committee and the ASEAN Standardization Committee. He
accompanied the Prime Minster the past two years to Nanning,
China and made a presentation on "Investment Opportunities in
the Golden Land." He decided not to travel with the business
delegation in 2006.


5. (C) Maung Maung Lay has regularly expressed his
frustration with the current government to us. He claims to
be one of the few business reps in the Chamber who pay no
bribes and ask no favors from government officials. He can
survive, he said, but it is difficult when corruption is so
widespread and payoffs are expected at every step. He said he
uses every opportunity to pass information to the government
to improve the business situation. Maung Maung Lay has
developed good relations with reporters from the popular
independent journals and the Myanmar Times. He communicates
with the government through the media by offering suggestions
and reporting the problems caused by government interference
and control in major economic sectors. He is frequently
quoted in the press, but says he is careful to craft his
message in a way that will pass the censors. He said he
believes the regime has started to listen, and made minor
changes in response to complaints, such as allowing account
transfers between importers and exporters.


6. (C) "The government is bad and business is bad," he said,
"but what to do? I want to bring good medicines into the
country, but the import permit process makes it too hard to

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operate successfully." Maung Maung Lay uses the Chamber of
Commerce to meet people and interact with the government
officials assigned to lead the Chamber. "This way, I don't
have to play golf to talk with government officials, like
others do," he said. He used the opportunity he had as
translator to pass his own messages to the Deputy Minister.
Business reps have little choice but to follow the rules set
by the government, he said, even though they don't agree. He
will give up his positions in the ASEAN Business Advisory
Committee and in the Chamber of Commerce promotion
delegations, he said, because they demand a lot of time and
provide little benefit. "I will concentrate on my own
business survival, for myself and my family," he said.


7. (SBU) Comment: Through his work with Western corporations
and his international travels, Maung Maung Lay has been
exposed to the world outside of the control of Burma's ruling
generals. He is a sensible man who uses his comfortable
position in Rangoon's business community to highlight
problems caused by the regime, but in a way that does not
threaten. He enjoys good relations with foreigners, shares
information freely and offers reasonable criticism of regime
policies. His children are both in New York. His son is in
his final year at SUNY, and his daughter, who also studied in
the US, now works at UN headquarters. Maung Maung Lay has
achieved some success without becoming beholden to the
regime, and he uses that position to encourage change. He is
a business leader who could successfully transition to a more
open regime. End comment.
VILLAROSA