Myanmar’s new president Htin Kyaw, left, arrives at parliament in Naypyitaw, with Aung San Suu Kyi. Reuters
Myanmar’s new president Htin Kyaw, left, arrives at parliament in Naypyitaw, with Aung San Suu Kyi. Reuters
Myanmar’s new president Htin Kyaw, left, arrives at parliament in Naypyitaw, with Aung San Suu Kyi. Reuters
Myanmar’s new president Htin Kyaw, left, arrives at parliament in Naypyitaw, with Aung San Suu Kyi. Reuters

Htin Kyaw sworn in as Myanmar president in historic power shift


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NAYPYIDAW // Myanmar entered a new era on Wednesday as Aung San Suu Kyi’s democracy movement took power after 50 years of military domination, with a close aide of the Nobel laureate sworn in as president.

Htin Kyaw, a school friend and confidante of the democracy campaigner, succeeded former general Thein Sein, who ushered in reforms that transformed Myanmar.

As Mr Htin Kyaw, 69, took the oath of office, he hinted he would change the army-imposed constitution that has excluded his friend and mentor from the top post.

Ms Suu Kyi, 70, is barred from the presidency by the junta-scripted constitution but has said she will steer the government anyway.

Mr Htin Kyaw is expected to act as her proxy.

The handover marked the final act of a prolonged transition since Ms Suu Kyi’s National League for Democracy party swept elections last November.

The NLD won 80 per cent of parliamentary seats. They are tasked with reviving a battered economy and a society straitjacketed by the army, which ruled between 1962 and 2011 when reforms first began under Mr Thein Sein’s quasi-civilian administration.

The new president pledged to be “faithful to the people of the republic of the union of Myanmar”.

“I will uphold and abide by the constitution and its laws. I will carry out my responsibilities uprightly and to the best of my ability,” he said.

In a later ceremony at the presidential palace, Mr Thein Sein symbolically handed over to his successor as Ms Suu Kyi looked on.

The military retains a quarter of all parliamentary seats and three key posts in the cabinet.

Ms Suu Kyi joined that cabinet holding a clutch of positions including foreign minister.

In a speech later in the day, Mr Htin Kyaw signalled that the NLD would continue its long-stated vow to amend the constitution to bring it up to “democratic standards”.

Mr Htin Kyaw gave no details on how the party would go about this.

Expectations ran high among Myanmar’s 51 million people but the new government faced a steep task.

Revolts rage in ethnic minority borderlands, poverty is widespread and the military holds huge political and economic power.

Sectarian tensions and anti-Muslim sentiment have flared in recent years.

The European Union welcomed Mr Htin Kyaw’s accession as a “new important step in the consolidation of the country’s remarkable transition”.

But it added: “Many challenges remain for Myanmar to become an inclusive, pluralistic and peaceful democracy.”

NLD lawmakers also have little practical experience of government.

Some were jailed by the junta, including most famously Ms Suu Kyi who was held under house arrest for a total of 15 years.

But on a historic day the party faithful were undaunted by the challenges ahead.

“I’m really happy. I am also remembering my colleagues who sacrificed for this battle [for democracy],” said NLD lawmaker Aye Naing.

Among a smattering of NLD supporters outside parliament, Yin Myint May welcomed the handover. “It is the biggest day for us,” she said.

“Remember we started [the democracy fight] in 1990,” she added, referring to elections won in a landslide by the NLD that were ignored by the junta.

Myanmar has witnessed a staggering political change since 2011 under Mr Thein Sein.

Investors and tourists began to return as repression eased, promising a better future to a public who now have access to mobile phones, cheaper cars and other consumer goods.

Hundreds of political prisoners were released and media censorship eased. Most western sanctions have been rolled back.

But Ms Suu Kyi’s administration must still maintain smooth relations with the military that locked her and many of her colleagues up for years.

As well as their guaranteed parliamentary bloc, the junta charter gave the army chief control over the home affairs, border and defence ministries – and with it sweeping powers over the civil service.

The NLD has also hit stumbling blocks even before taking office.

There are concerns over the cabinet line-up in which Ms Suu Kyi is the only woman and the majority of members are in their 60s or older, despite representing one the region’s youngest populations.

* Agence France-Presse

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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