Tag: Myanmar

  • Myanmar Set to Burst onto Global Durian Scene: A New Frontier in Fruit Exporting

    Myanmar Set to Burst onto Global Durian Scene: A New Frontier in Fruit Exporting

    Myanmar is gearing up to venture into the global durian export market, aiming to launch exports by 2023 or at the latest by 2027. This move is part of a strategic plan to generate additional foreign income and bolster the nation’s local durian industry.

    Initiatives Underway

    According to Kyaw Min, the chairman of the Myanmar Durian Producers and Exporters Association, the registration process with the General Administration of Customs of China has already commenced. The focus is not only on the export of fresh durians but also processed durian products.

    Min revealed that the association is actively seeking foreign investors, industry experts, and business partners to foster the development of value-added durian processing within the country. The belief is that this initiative will catalyze swift growth in Myanmar’s durian industry and generate new streams of foreign income once exports commence.

    The Global Durian Market

    China stands as the globe’s leading consumer of this strong-smelling fruit. In the previous year, China imported a record-breaking 15.6 million tonnes of durian, valued at a staggering US$6.99 billion. The majority of these imports originated from Thailand and Vietnam, with contributions of 57% and 41.5% respectively. The remaining percentage of imports came from the Philippines and Malaysia.

    However, this year has recorded a dip in demand, with a 15% decrease in imports during the first half of the year. This equates to a total of 708,190 tonnes. The market has also become more competitive, with new players like Cambodia, which shipped its initial durian batch in July.

    Laos has expressed interest in joining the competitive market, and Indonesia has publicized plans to ship durians directly to China, bypassing their previous route through Thailand.

    Myanmar Durian Industry

    Currently, Myanmar cultivates durians on approximately 60,000 acres (24,281 hectares) of land. More than 4,000 of these acres are located in Yangon, a central durian producing region. Other significant production hubs include the Kayin and Mon states and the Tanintharyi, Bago, and Ayeyarwady regions.

    According to Myint Sein, a trustee of the Ayeyarwady Durian Producers and Exporters Cluster, Myanmar’s durian season traditionally falls in May, June, and July. Sein emphasizes that the development of the durian industry in Myanmar will significantly benefit local farmers and contribute substantially to national economic growth.

    Questions & Answers

    What is Myanmar’s plan for its durian industry?
    Myanmar plans to begin exporting durians to the global market by 2023 or 2027 to increase foreign income and grow its local industry.

    Who are the major players in the global durian market?
    China is the largest buyer, and the main suppliers are Thailand, Vietnam, the Philippines, and Malaysia. New entries Cambodia, Laos, and Indonesia are also establishing their presence.

    What impact could the development of the durian industry have on Myanmar?
    The development of the durian industry is expected to significantly uplift local farmers and contribute to the country’s economic growth.

  • Starlink Devices Seized In Myanmar’s Crackdown On Booming Cyber Fraud Hubs

    Starlink Devices Seized In Myanmar’s Crackdown On Booming Cyber Fraud Hubs

    In a targeted action against one of Myanmar’s most infamous cyber fraud hubs, the country’s ruling military junta reportedly confiscated several Starlink satellite internet devices. This operation follows an investigation, which exposed the significant increase in the use of these devices in the burgeoning illicit trade.

    The Thriving Cyber Fraud Industry

    Since the onset of the Covid-19 pandemic, cyber crime centers that primarily target unsuspecting foreigners have proliferated in Myanmar’s war-torn border regions. These cyber dens run various fraudulent schemes ranging from business scams to romantic deceptions. The ongoing pandemic and the resultant closure of casinos in these regions have further fueled this burgeoning industry.

    A joint operation by Thai, Chinese, and Myanmar authorities, which commenced in February, led to the deportation of thousands of suspected scammers. While some willingly engage in these fraudulent activities, others are coerced into it by organized crime syndicates.

    A recent examination detected swift construction progression at fraud hub locations and installation of Starlink devices, a satellite internet service owned by Elon Musk, on their rooftops.

    A Fraction of the Whole

    Myanmar’s state media revealed that the military had recently executed operations near the Myanmar-Thai border at KK Park, confiscating 30 sets of Starlink receivers and associated equipment. However, this number represents just a fraction of the Starlink devices identified via satellite imagery and drone photography. One building at KK Park was found to have approximately 80 internet dishes installed on its roof.

    Despite not being authorized in Myanmar, Starlink dominated the country’s internet providers’ ranking from July 3rd to October 1st. The surge in Starlink traffic came after an extensive crackdown in February.

    Increasing Scrutiny

    The US Congress Joint Economic Committee has initiated an investigation into Starlink’s potential involvement with these fraud centers. While it has the authority to summon Musk for a hearing, it cannot compel him to testify. Starlink’s parent company SpaceX, has yet to comment on this matter.

    Vast Network of Scams

    The military junta reportedly commandeered around 200 buildings and located nearly 2,200 workers at the scam site. Furthermore, 15 individuals of Chinese descent were arrested on charges of online fraud, online gambling, and other unlawful activities.

    According to a report by the UN Office on Drugs and Crime, Southeast Asian scam operations swindled victims out of $37 billion in 2023. Myanmar has emerged as a major hub for these scam centers, prompting increased scrutiny and action from local and international authorities.

    Questions & Answers

    What is the Starlink?
    Starlink is a satellite internet service owned by Elon Musk.

    What has been the impact of the Covid-19 pandemic on the cyber fraud industry in Myanmar?
    The pandemic has led to a significant increase in cyber fraud activities in Myanmar, particularly in the country’s war-torn border regions.

    What is the extent of the scam network in Southeast Asia?
    According to a report by the UN Office on Drugs and Crime, Southeast Asian scam operations defrauded people of $37 billion in 2023, with Myanmar emerging as a major hub for these activities.

  • China, Myanmar, Thailand Unite to Combat Rising Telecom Fraud Threats Together

    China, Myanmar, Thailand Unite to Combat Rising Telecom Fraud Threats Together

    In a decisive move against burgeoning criminal enterprises, China, Myanmar, and Thailand have committed to strengthening their collaboration in dismantling elaborate scam networks proliferating across Southeast Asia, with a particular focus on the notorious Myawaddy region. This area has gained infamy as a major hub for fraudulent activities, and the three nations aim to eradicate such operations.

    Strengthening Cross-Border Alliances

    China’s Ministry of Public Security unveiled this agreement following a recent trilateral ministerial meeting dedicated to intensifying efforts against telecom fraud. Attended by law enforcement officials from each country, the high-level gathering was a platform for discussing comprehensive action plans to apprehend suspects and obliterate scam centers in Myawaddy and other known hotbeds of deceit. The endeavors have already seen over 5,400 Chinese nationals repatriated to China for investigation linked to their involvement in fraud schemes.

    Past Success Fuels Future Initiatives

    This isn’t China’s first foray into collaborative law enforcement; the nation has previously allied with its Southeast Asian neighbors to tackle telecom fraud. In 2024 alone, joint operations between Chinese and Myanmar police led to the arrest of more than 53,000 suspects within major scam compunds along the China-Myanmar border. China’s effectiveness in this realm was further demonstrated by the successful repatriation of 268 suspects engaged in cross-border telecommunications fraud, through cooperation with Laos.

    A Call for Broader Alignment

    China’s strategy is not limited to these three nations. The government is actively encouraging additional Southeast Asian countries, such as Cambodia and Vietnam, to partake in its crusade against online gambling and telecom scams, which frequently operate in tandem. Guo Jiakun, spokesperson for the Chinese Foreign Ministry, articulated that engaging in these battles is essential for protecting the common interests of China and its regional partners. It’s a bit like forming a super team against digital villains, where every country’s participation can tilt the scales of justice.

    Supporting Regional Frameworks

    International support for this trilateral initiative has been forthcoming. Benedikt Hofmann, Acting Regional Representative of the United Nations Office on Drugs and Crime (UNODC) for Southeast Asia and the Pacific, deemed the cooperation as “encouraging,” highlighting its potential to pave the way for deeper, sustained regional cooperation in the fight against crime.

    Questions & Answers

    How are China, Myanmar, and Thailand planning to strengthen their cooperation against telecom fraud?
    The three nations recently met to agree on intensified joint crackdowns on telecom fraud, including the commitment to arrest all suspects and eliminate scam operations, particularly in Myawaddy.

    What past successes have contributed to the current efforts against scam networks?
    In 2024, a collaborative effort led to the arrest of over 53,000 suspects in Myanmar, as well as the repatriation of 268 suspects involved in cross-border telecom fraud.

    Which other countries is China encouraging to join this fight against online scams?
    China is inviting Cambodia and Vietnam to participate in the fight against telecom scams and online gambling, emphasizing the need for a united front in safeguarding regional interests.

  • Innovative Telecom Solutions for Myanmar’s Education Sector

    Innovative Telecom Solutions for Myanmar’s Education Sector

    However, the increasing integration of technology, driven by innovative telecom solutions, offers a pathway to transform education and bridge critical gaps. By leveraging advancements in connectivity and digital platforms, Myanmar has the potential to leap into the digital age, ensuring access to equitable and quality education for all its citizens.

    Myanmar’s education system has long suffered from systemic underfunding and limited technological integration. Rural areas, which comprise a significant portion of the country, often lack adequate educational facilities, qualified teachers, and access to updated learning materials. However, technology is emerging as a vital tool to address these issues.

    The use of information and communication technologies (ICT) in Myanmar’s education is relatively nascent but promising. According to a UNESCO profile, technology integration is seen as a critical strategy to improve the quality of education. Efforts are underway to adopt mobile and internet-based solutions that cater to both urban and rural populations.

    Myanmar’s telecom sector has experienced rapid growth, with mobile penetration reaching over 75% of the population in recent years. Mobile platforms are increasingly used to deliver educational content, enabling students in remote areas to access resources previously unavailable to them. Programs like SMS-based learning modules and mobile apps tailored to Myanmar’s curriculum are transforming student engagement.

    However, internet penetration remains a key challenge, particularly in rural areas with sparse connectivity. Initiatives to expand broadband access, including public-private partnerships, are addressing this gap, as seen in the Asian Development Bank’s efforts to enhance digital infrastructure, emphasizing affordable and reliable internet access for educational equity.

    The COVID-19 pandemic further accelerated the adoption of remote learning solutions, with initiatives like Ericsson’s partnership with Myanmar’s Ministry of Education focusing on digital classrooms that cater to both urban and underserved communities through live and recorded lessons.

    Meanwhile, emerging technologies such as virtual reality (VR) and artificial intelligence (AI) are making education more engaging and interactive. Pilot projects supported by Frontier Technologies Hub have demonstrated the potential of VR in simulating science experiments and historical tours, offering students enriching educational experiences even in resource-constrained settings.

    Despite significant progress, several challenges continue to hinder the large-scale implementation of telecom-based educational solutions in Myanmar. Infrastructure limitations, such as inconsistent power supply and insufficient telecom towers in rural areas, make it difficult to sustain digital learning platforms. Additionally, while mobile penetration is high, the cost of data and devices remains prohibitive for many families, particularly in underserved communities.

    Digital literacy also poses a significant barrier, as both teachers and students often lack the necessary skills to effectively use digital tools, highlighting the need for targeted capacity-building initiatives. To overcome these obstacles, collaborative efforts have proven instrumental.

    Public-private partnerships, like Ericsson’s initiatives with Myanmar’s Ministry of Education, demonstrate how companies can drive digital inclusion by providing infrastructure and platforms for remote education. Furthermore, grassroots programs led by local NGOs are equipping rural schools with basic ICT tools, ensuring even remote areas benefit from technological advancements.

    Ericsson’s ‘Connect To Learn’ program in Myanmar focuses on improving education in rural areas through innovative public-private collaborations. The initiative, Ericsson’s largest deployment to date, supports 31 schools, 310 teachers, and over 34,000 students, more than half of whom are girls. It has also provided 600 scholarships for girls.

    The program enhances literacy, numeracy, and ICT integration skills, with 155 teachers completing UNESCO’s ICT-pedagogy training, enabling them to enrich classroom teaching and mentor other educators. Partners include Ericsson, the UK Department for International Development (DFID), UNESCO, and Myanmar Post and Telecommunications, with support from Myanmar’s Ministries of Education and Communications. The project aligns with the UN’s Sustainable Development Goals (SDGs), particularly those focused on quality education, gender equality, and reduced inequalities.

    International bodies, such as the Asian Development Bank, emphasize the importance of policy frameworks that support ICT integration, investment in digital literacy, and the creation of affordable and localized content. Looking ahead, several growth areas hold promise for telecom-driven education in Myanmar.

    Myanmar’s approach to integrating technology into education emphasizes legislative frameworks, infrastructure development, and competency-building for learners and educators. Although terms like ICT and EdTech lack precise definitions in foundational documents like the 2008 Constitution and 2014 National Education Law, the country’s policies, such as the 2016-2021 National Education Strategic Plan and the 2019 Myanmar Digital Economy Roadmap, recognize technology’s transformative role in education.

    These policies aim to enhance teaching and learning through modern technologies, improve digital skills among students and teachers, and establish a digital economy. Efforts like the Teacher Competency Standards Framework (TCSF) and UNESCO’s Media and Information Literacy (MIL) Competency Framework support these objectives, focusing on equipping educators with the tools to drive quality education and fostering 21st-century skills in learners. Initiatives like the Myanmar Digital Education Platform (MDEP) and distance learning modalities introduced during the COVID-19 pandemic illustrate the nation’s commitment to ensuring equitable access to quality education, even amidst challenges.

    Infrastructure and access to digital tools also play a pivotal role in Myanmar’s strategy. Programs such as the Universal Service Strategy aim to provide schools with adequate ICT resources, password-protected Wi-Fi, and up-to-date computers. Furthermore, special projects under this program focus on creating content and applications tailored to underserved communities. The Myanmar Telecommunications Masterplan sets ambitious goals for high-speed internet access across the country.

    Investments in distance learning and alternative digital learning centers aim to expand ICT training beyond formal education, ensuring inclusivity. These efforts align with the broader goals of the Myanmar Sustainable Development Plan, which emphasizes the importance of digital infrastructure in fostering equitable education and sustainable growth.

    Through concerted efforts, Myanmar’s telecom solutions have the potential to transform education, overcoming geographical, infrastructural, and socio-economic barriers to create a more inclusive and equitable system.

  • H&M probes alleged Myanmar factory abuses as pressure intensifies

    H&M probes alleged Myanmar factory abuses as pressure intensifies

    H&M is investigating 20 alleged instances of labour abuse at Myanmar garment factories that supply the world’s second-largest fashion retailer, it told Reuters, just weeks after top rival Zara-owner, Inditex, said it was phasing out purchases from the Southeast Asian country.

    A British-based human rights advocacy group tracked 156 cases of alleged worker abuses in Myanmar garment factories from February 2022 to February 2023, up from 56 in the previous year, indicating a deterioration of workers’ rights since a military coup in February 2021.

    Wage reduction and wage theft were the most frequently reported allegations, followed by unfair dismissal, inhumane work rates, and forced overtime, according to a report by the non-governmental organisation, the Business and Human Rights Resource Centre (BHRRC).

    “All the cases raised in the report by BHRRC are being followed up and, where needed, remediated through our local team on the ground and in close co-operation with relevant stakeholders,” H&M said in a statement.

    “We are deeply concerned by the latest developments in Myanmar, and we see increased challenges to conduct our operations according to our standards and requirements,” the Swedish retailer said.

    The BHRRC has been tracking allegations of workers’ rights abuses in garment factories since the military junta took power in Myanmar, plunging it into political and humanitarian crisis. The tracker includes abuse cases at 124 separate factories.

    The BHRRC said it tracks cases of alleged abuses through sources including union leaders, international media, and local media such as Myanmar Labour News, and seeks to verify reports by checking with brands and interviewing workers. Reuters did not independently verify its findings.

    There have been 21 cases of alleged abuses linked to Inditex suppliers over the two-year period, and 20 linked to H&M suppliers, according to the report. Inditex declined to comment on the report.

    A spokesperson for Myanmar’s military government did not reply to a request for comment on the findings. The Myanmar Garment Manufacturing Association did not reply to a request for comment.

    The decision by Inditex to exit came after Primark and Marks & Spencer announced plans to exit last year, in a trend that some say could ultimately leave garment workers worse off. Spanish fashion retailer Tendam also plans to stop sourcing from Myanmar, it said in its response to a BHRRC survey of brands published alongside the report.

    “We do have a plan to leave the country but it has not been announced yet,” Tendam wrote, without detailing its reasons. Tendam did not immediately reply to a request for comment.

    Primark told Reuters it expects its final orders from Myanmar suppliers to ship before the end of this year, but has also increased its presence on the ground. “As we work towards our exit, we’ve doubled the size of our Ethical Trade team on the ground, enabling us to more regularly visit the factories we still work with and giving us greater visibility,” Primark said.

  • Guide to Myanmar Online Casinos

    Guide to Myanmar Online Casinos

    Over recent years, Burmese casino players have had several options to help them enjoy the thrill of online gaming. With the number of online casinos available in Myanmar, it may not be easy to pick the right choice. Let’s take a look at the dynamics of online gaming in Myanmar.

    How to Open an Online Casino Account in Myanmar

    Although signing up for an online casino account in Myanmar is one of the most straightforward things to do, it doesn’t mean you should register on the first one on your browser. When you search for online casinos Myanmar, most sites will be dying for your attention. This allows you to find incredible offerings and promotions.

    Before you create an account, ensure you have met these requirements:

    • Have a valid email address
    • Be at least 18 years of age
    • Read, understand, and agree to the terms and conditions of the online casino site.

    Once you have all these, you are ready to create an online casino account in Myanmar. You will then need to deposit money into the account and begin having fun in no time.

    Benefits of Online Gambling in Myanmar

    There are a lot of benefits you can expect to accrue from playing casino games online. They include:

    Online Gambling is Safe

    Online casinos in Myanmar are safe, so players don’t have to worry about losing critical information shared on these websites. Most websites are protected from hackers.

    Multiple Games Available

    There might be days when you feel like you only want to play slots and not other card games. Whatever online casino game you fancy playing, you will have a chance to play it anytime. Therefore don’t hesitate to explore your options.

    Some of the incredible games to consider include:

    • Baccarat
    • Roulette
    • Slot games
    • Sports betting
    • Keno

    No Need to Leave the Comfort of Your Home or Office

    In the past, Burmese players had to travel long distances to play at land-based casinos. However, modern technology has made anything possible. Besides preserving your data, online gambling allows you to enjoy your favorite games anytime. You no longer have to leave your home to enjoy the thrill of casino games.

    Accessibility

    With only a laptop, smartphone, or tablet and an internet connection, you can play live games and slots whenever you want! The best thing is that these casinos are available 24/7 and have staff ready to offer a helping hand whenever you encounter challenges.

    Entertainment

    Online casino games in Myanmar provide seamless digital entertainment to several players around the country. Unlike land-based gambling, online casinos have a set of popular games. Besides, most online casinos partner with the best software developers to ensure players have an outstanding gaming experience.

    Conclusion

    Thanks to modern technology, you can enjoy your favorite game and earn real money anywhere and anytime. There are limitless opportunities for you to enjoy your online casino games in Myanmar. You only have to browse the web, find the most suitable online casino and begin playing!

  • Ooredoo Plans To Exit Myanmar

    Ooredoo Plans To Exit Myanmar

    Qatari telecoms giant Ooredoo is considering selling its Myanmar unit, a source with knowledge of the matter told Reuters, following the exit of Norwegian carrier, Telenor, in March this year.

    Ooredoo is now the only foreign telecoms service provider operating in Myanmar amid the increasing pressure on the local industry, the result of the military coup launched in February 2021.

    According to sources cited by Reuters, Ooredoo has notified the local regulator, Myanmar’s Posts and Telecommunications Department (PTD), of its plans to sell its Myanmar unit for an undisclosed amount.

    One insider also told Reuters that potentially interested investors could include local conglomerate Young Investment Group, Singapore-headquartered network infrastructure operator Campana Group, and telecoms company SkyNet.

    No final decision has yet been made regarding the potential buyers.

    Reuters said the Doha-based telecom firm did not immediately respond to its emailed inquiry. The news agency also said it tried to reach the interested investors, but no immediate comment has been given.

    The departure of Telenor earlier this year took place after Reuters last year reported that the PTD has issued a directive, which bans senior foreign executives of major telecommunications firms from leaving Myanmar without permission. After this ban, the junta then released a second order instructing telecoms firms to fully implement an intercept surveillance technology, enabling authorities to monitor various communication channels.

  • Telenor Myanmar subsidiary sold to Lebanese M1

    Telenor Myanmar subsidiary sold to Lebanese M1

    Myanmar’s junta has approved the sale of Norwegian telecoms giant Telenor’s Myanmar subsidiary to Lebanese conglomerate M1 Group, in a move activist groups warn could put sensitive customer data in the hands of the military.

    The Southeast Asian nation has been in chaos since a coup last year sparked huge protests and a bloody military crackdown on dissent, sending its economy into freefall.

    In July, Telenor announced that it planned to sell its subsidiary Telenor Myanmar and later cited junta demands that it installs monitoring equipment on the network as a reason for leaving the country.

    After months of stalled negotiations, Telenor and M1 – which is helmed by current Lebanese prime minister Najib Mikati – both said the sale had been approved by junta authorities.

    “M1 Group has been informed that the Myanmar Investment Commission has approved Telenor Group’s application for the sale of Telenor Myanmar to Investcom PTE Ltd, an M1 Group affiliate,” M1 said in a statement.

    A separate statement from Telenor said the sale had been given “final regulatory approval”.

    M1 will partner with local consortium Shwe Byain Phyu to take ownership of the new entity, according to the group’s statement.

    Founded in 1996, Shwe Byain Phyu started out distributing petroleum products for the then-military government, and employs more than 2,000 people in Myanmar.

    It has interests in petroleum trading, manufacturing, commodities trading and marine products, according to its website, which lists no previous telecoms experience.

    “Sanctions screening from external consultants has assured Telenor that Shwe Byain Phyu and its owners are not subject to any current international sanctions,” the Norwegian firm said in a statement.

    Last year, 474 civil society groups in Myanmar called Telenor’s decision to pull out irresponsible, saying it had not sufficiently considered the impact on human rights.

    Activist groups say any new owner could comply with future requests from the junta to provide cellphone data of dissidents protesting against the putsch that ousted Aung San Suu Kyi’s government last year.

    “There are still many things Telenor can do to mitigate harm,” said Joseph Wilde-Ramsing, senior researcher at SOMO, a Netherlands-based non-profit that conducts research and advocacy on corporations.

    “If they won’t take any steps to minimise the data transfer, they can still do things like set up a fund to help victims, remediate some of the harms they are going to be contributing to with the sale.”

  • Japan brewer Kirin to exit Myanmar

    Japan brewer Kirin to exit Myanmar

    Japanese drinks giant Kirin said Monday (Feb 14) it will withdraw from Myanmar, after a failed bid to disentangle its operations from a joint venture with a junta-owned company after last year’s coup.

    The brewery is the latest foreign company to pull out of Myanmar with international pressure building against the junta since it ousted civilian leader Aung San Suu Kyi and waged a widespread crackdown on dissent.

    Kirin said its decision comes after months of wrangling following the coup last February, which prompted the company to express concerns about human rights and eventually seek to end its joint venture Myanmar Brewery Limited.

    Kirin has decided “to withdraw from the business in Myanmar in order to urgently terminate its joint venture partnership” with military-linked MEHPCL, the company said in a statement.

    Myanmar Brewery, whose beverages include its flagship and ubiquitous Myanmar Beer brand, boasted a market share of nearly 80 per cent, according to figures published by Kirin in 2018.

    Kirin’s attempts to terminate the partnership with MEHPCL were unsuccessful, and the Japanese drinks maker said in November that it would contest a bid to dissolve their joint brewery over fears liquidation proceedings would not be fair.

    On Monday, Kirin said it had taken “every measure to find a way forward that would allow it to continue to contribute to Myanmar’s economy and society”.

    That included filing for arbitration in Singapore in a bid to end the joint venture and proceed without the military-linked partner.

    “In the end, Kirin Holdings determined that it would be difficult to quickly terminate the joint venture in the manner it desires,” the company added in a statement.

    “Therefore, Kirin Holdings has now commenced and is proceeding with discussions with MEHPCL in order to withdraw from the business in Myanmar, giving top priority to the termination of the joint venture as soon as possible.” A junta spokesperson did not immediately respond to a request for comment.

    With the economy tanking and pressure mounting from rights groups, companies from France’s TotalEnergies to British American Tobacco and Norway’s Telenor have upped sticks or announced they will leave.

    After the coup and arrest of Myanmar’s democratic leaders, Kirin said it was “deeply concerned” by the military’s actions.

    The brewery had been under pressure even before the coup over its ties to Myanmar’s military, and launched an investigation after pressure from rights groups into whether money from its joint venture had funded rights abuses.

    In a statement, Justice For Myanmar spokesperson Yadanar Maung welcomed Kirin’s decision to withdraw from the country, praising the firm for “listening to the voice of Myanmar people and Myanmar, Japanese and global civil society”.

    “Kirin should never have entered into business with a brutal and corrupt military conglomerate,” she added, accusing the brewery of having “financed atrocity crimes and enriched top generals.”

    The activist group urged other Japanese firms doing business with the military to cut ties, and called on Kirin to avoid payments to MEHPCL or the military during the withdrawal process.

    Investors piled into Myanmar after the military relaxed its iron grip in 2011, paving the way for democratic reforms and economic liberalisation in the country of more than 50 million people.

    They poured money into telecommunications, infrastructure, manufacturing and construction projects, but the coup upended the democratic interlude and damaged the economy.

    The pandemic and supply chain disruptions have also hit the country, with Kirin saying in its earnings report released Monday that Myanmar’s beer market has shrunk by about 20 per cent.

    It said Myanmar Brewery’s sales volumes had decreased by around 30 per cent compared to the same period last year.

  • Telenor sale could endanger Myanmar activists

    Telenor sale could endanger Myanmar activists

    The sale of Telenor’s Myanmar subsidiary could place the personal data of its 18 million customers in the junta’s hands. As Telenor finalizes the sale of its Myanmar business to a military-linked group, concerns have been raised that sensitive data will be infringed and that families of activists in hiding will be put in harm’s way.

    According to sources, the sale will be completed by 15 February. Last July, Telenor announced that its Myanmar subsidiary would be sold to Lebanon’s financial firm, M1 Group. Military-linked Shwe Byain Phyu was later known to be a co-investor in the sale approved by the junta.

    Justice for Myanmar has since urged the Norwegian government to intervene in the sale. There had been reports that the Ministry of Transport and Communications (MOTC), ruled by the junta, had made more than 200 requests to Telenor for information including records of calls, over the past year.

    Telenor has since said that customers in Myanmar are handled by Telenor Myanmar and that Norwegian or EU data protection regulations do not apply to its subsidiary.

  • Telenor Group exits Wave Money

    Telenor Group exits Wave Money

    Telenor Group and Yoma Strategic have entered into an agreement to sell Telenor Group’s 51% share of Digital Money Myanmar Limited (“Wave Money”) for USD 53 million to Yoma MFS Holdings Pte. Ltd, a subsidiary of Yoma Strategic.

    This subsidiary is to be funded by a consortium of investors led by Yoma Strategic which remains subject to completion and final funding. When the transaction is concluded, Yoma Strategic will become the largest and controlling shareholder of Wave Money, ensuring that the company continue operations and further extend its leading role in Myanmar’s fintech sector.

    Wave Money is a leading provider of money transfer and digital payment solutions in Myanmar. The company was launched in November 2016 as a joint venture between Yoma Bank and Telenor Group, after the fintech pioneer was awarded a license to become the first non-bank institution to work under Myanmar’s new Mobile Financial Services Regulation.

    In 2020, Wave Money processed a total of US$ 8.7 billion in remittance and payments, which represented around 12% of Myanmar’s GDP. The company runs a network of more than 45,000 active agents or “Wave Shops” in urban and rural areas across 295 out of the 330 townships nationwide. The business has seen a significant recovery in volumes since June 2021 with the trend expected to continue.

    “This acquisition reinforces Yoma Strategic’s desire to build a strong financial and technology ecosystem in the country over the long term. The digitization in the economy, in particular in financial services, has been remarkable for Myanmar. We are pleased that Wave Money has positively transformed the way of life of people in Myanmar, bringing financial inclusion to the mass,” says Melvyn Pun, CEO, Yoma Strategic.

    “Telenor is proud to have been part of Wave Money’s journey to empower the people of Myanmar with country-wide access to financial services. We have worked in partnership with Yoma Strategic to ensure that anyone from anywhere can digitally send and receive money, make contactless and secure payments in-stores or online using the market-leading mobile Wallet App of Wave Money. We are confident that Yoma have the commitment and vision to take Wave Money forward to the next level of driving financial inclusion”, says Lars Erik Tellmann, head of financial services in Telenor Group.

    The agreement between Yoma Strategic and Telenor Group completes the divestment process announced in June 2020. The transaction is subject to various conditions to be completed, among them regulatory approval from the Myanmar Central Bank.

  • Telenor sells Myanmar operations to Lebanon’s M1 Group for $105 million

    Telenor sells Myanmar operations to Lebanon’s M1 Group for $105 million

    Telenor Group has entered into an agreement to sell 100 percent of its mobile operations in Myanmar to M1 Group for a total consideration of US$105 million USD, of which US$55 million is a deferred payment over five years. The transaction corresponds to an implied enterprise value of approximately US$600 million USD. M1 Group will acquire all the shares in Telenor Myanmar and continue the current operation.

    On 4 May, Telenor Group announced an impairment of Telenor Myanmar. Telenor underlined at the time that the operations in Myanmar continued and that the future presence would depend on the developments in the country and the ability to contribute positively to the people of Myanmar. Further deterioration of the situation and recent developments in Myanmar form the basis for the decision to divest the company. In the present situation, it has not been possible for Telenor to conduct an ordinary sales process.

    “The situation in Myanmar has over the past months become increasingly challenging for Telenor for people security, regulatory and compliance reasons. We have evaluated all options and believe a sale of the company is the best possible solution in this situation. The agreement to sell to M1 Group will ensure continued operations. Telenor entered Myanmar because we believed that access to affordable mobile services would support the country’s development and growth. I wish to thank all employees and partners who have taken significant efforts to build a company that has impacted the people of Myanmar and has provided state of the art telco services during Telenor’s years in the country,” says Sigve Brekke President and CEO of Telenor Group.

    Since operations started in 2014, Telenor’s funding to Myanmar has been around 5.3 billion NOK. After turning cash flow positive in 2017, Telenor Myanmar has distributed approximately 3.2 billion NOK in dividends. With effect from the second quarter of 2021, Telenor Myanmar will be treated as an asset held for sale and discontinued operations. The gain/loss calculation arising from the transaction will be impacted, inter alia, by the accumulated translation differences related to the Myanmar operation and will be finally determined at closing. The transaction is subject to regulatory approvals in Myanmar.

  • H&M begins placing orders in Myanmar again after pause in wake of coup

    H&M begins placing orders in Myanmar again after pause in wake of coup

    Swedish fashion retailer H&M said on Monday it was gradually beginning to place new orders again with its suppliers in Myanmar after a temporary pause following the military coup in the country in February.

    “With our decision, we want to avoid the imminent risk of our suppliers having to close their factories which would inevitably result in unemployment for tens of thousands of garment workers,” it said in an emailed statement.

    H&M said that after due diligence, it had concluded the company had no direct links with the military in Myanmar. “We are now looking for legal guidance on how to handle any potential indirect links international companies may have.”

    The world’s second-biggest fashion retailer in March said it was shocked by the use of deadly force against protesters in Myanmar and that it had paused placing orders in the country.

    Shortly after the military seized power, it was among the 55 foreign investors in Myanmar who signed a statement committing to the country and employees there during developments of “deep concern”.

    It said on Monday it remained deeply concerned about the situation in Myanmar.

  • Myanmar crisis sounds death knell for garment industry, jobs and hope

    Myanmar crisis sounds death knell for garment industry, jobs and hope

    Two years after opening his garment factory in Myanmar, Li Dongliang is on the verge of closing down and laying off his 800 remaining workers. The business had been struggling because of the Covid-19 pandemic, but after a February 1 coup that sparked mass protests and a deadly crackdown – during which his factory was set alight amid a surge of anti-Chinese sentiment – orders stopped.

    His story is emblematic of the perilous situation facing a sector critical to Myanmar’s economy, which accounts for a third of its exports and employs 700,000 low-income workers, according to UN data.

    “We would have no choice but to give up on Myanmar if there are no new orders in the next few months,” said Li, adding he has been operating at about 20 percent capacity, surviving only on orders placed before the coup, and had already shed 400 staff.

    Li said he and many of his peers were considering moving to other low-cost garment hubs like China, Cambodia or Vietnam, as big fashion brands like H&M and Primark have stopped trading with Myanmar due to the coup.

    Chinese nationals like Li fund nearly a third of Myanmar’s 600 garment factories, according to the Myanmar Garment Manufacturers Association, by far the largest investor group.

    At least two other Chinese-funded garment factories in Myanmar, employing a combined 3000 workers, had decided to close, said Khin May Htway, managing partner of MyanWei Consulting Group, which advises Chinese investors in Myanmar. She said the two firms were her clients but declined to identify them citing privacy.

    Foreign investment in garments surged in Myanmar over the past decade as economic reforms, an end to Western sanctions, and trade deals helped establish the sector as the greatest symbol of its nascent emergence as a manufacturing hub.

    Myanmar garment shipments rose from less than $1 billion in 2011, about 10 percent of exports, to more than $6.5 billion in 2019, about 30 percent of exports, according to UN Comtrade data. But the sector has been rocked by the pandemic which plunged the world into recession and choked consumer demand, resulting in tens of thousands of garment factory jobs lost in Myanmar and elsewhere in Asia. Then the coup happened.

    In the weeks that followed, many garment workers joined protests or couldn’t get to work as streets became battlegrounds. The turmoil also jammed the banking system and made it difficult to get goods in and out of the country, factory owners said.

    With international condemnation of the coup growing, European and US fashion brands last month issued a statement through their associations saying they would protect jobs and honor commitments in Myanmar.

    However, many have recently halted orders there including the world’s second-biggest fashion retailer, Sweden’s H&M, Britain’s Next and Primark, and Italy’s Benetton.

    Next said it would split its orders previously going to Myanmar between Bangladesh, Cambodia, and China, while Benetton said it would mainly move the business to China. H&M and Primark have not commented on how they will redistribute orders.

    Escape from poverty

    In Vietnam, garment factory owner Ravi Chunilal told Reuters he was starting to get more business from European buyers diverting from Myanmar.

    “They don’t want to abandon Myanmar … but it’s being forced upon them,” said Peter McAllister of Ethical Trade Initiative, a labor rights organization whose members include European high-street brands.

    McAllister said that it would be very difficult for Myanmar’s garment sector to recover if Chinese investors left.

    Anti-China sentiment has risen since the coup, with opponents of the takeover noting Beijing’s muted criticism compared with Western condemnation. It was against this backdrop that several Chinese-funded factories, including Li’s, were torched by unidentified assailants during a protest last month.

    Rights groups have repeatedly raised concerns about exploitation in Myanmar’s garment sector, where mostly women workers earn as little as 4800 kyat ($3.40) a day, the lowest rates in the region.

    But it has provided an escape from poverty for many, as workers have migrated from rural areas to the factories, mainly around the commercial hub of Yangon, and sent money back to their families.

    Khin Maung Aye, managing director of Lat War garments factory, which employs 3500 people, says the sector faces collapse if the military does not restore a democratically elected government.

    That would result in “terrible outcomes of poverty”, he said, adding that he was also staying afloat on orders placed before the coup but feared orders for next season, normally due later this month, will dry up.

    The US, which has imposed targeted sanctions on Myanmar’s military, late last month suspended trade talks with it and said it was reviewing its eligibility for its Generalized System of Preferences scheme, which reduces tariffs and provides other trade benefits for developing countries.

    That could “portend future disruption” for Myanmar’s garments sector, said Steve Lamar, president of the American Apparel & Footwear Association, which represents more than 1000 fashion brands.

    But some unions representing garment workers have called for the international community to impose tougher sanctions to press the military, even though it may further damage their industry.

    “I accept orders moving away,” Myo Myo Aye, founder of the Solidarity Trade Union of Myanmar, said through a translator. “Workers would face difficulties and hardship because there would be no jobs. On the other hand, we simply don’t accept the military regime.”

  • Fashion giant H&M pauses placing new orders in Myanmar

    Fashion giant H&M pauses placing new orders in Myanmar

    Sweden’s H&M, the world’s second-biggest fashion retailer, said on Monday it was shocked by the use of deadly force against protesters in Myanmar and that it had paused placing orders in the country.

    Police and military have killed more than 50 people to quell daily demonstrations and strikes against a Feb. 1 military coup, according to the United Nations last week.

    H&M has around 45 direct suppliers in Myanmar, it said on its website, and has sourced in the country for seven years.

    “Although we refrain from taking any immediate action regarding our long-term presence in the country, we have at this point paused placing new orders with our suppliers,” Serkan Tanka, Country Manager Myanmar, said in an email.

    “This is due to practical difficulties and an unpredictable situation limiting our ability to operate in the country, including challenges related to manufacturing and infrastructure, raw material imports, and transport of finished goods.”

    Two protesters were killed by gunshot wounds to the head in Myanmar on Monday, witnesses said, while shops, factories and banks were closed in the main city Yangon as part of the uprising against the country’s military rulers.

    Tanka said H&M was extremely concerned about the situation in the country and that it was in dialogue with UN agencies, diplomatic representatives, human rights experts, trade unions, and other multinational companies.

    “These consultations will guide us in any future decision in relation to how we as a company can best contribute to positive developments in accordance with the will of the people in Myanmar,” he said.

    Myanmar’s garment industry is smaller than that of neighboring countries Bangladesh, China and Thailand. However, its around 600 factories are significant employers, providing jobs for around 450,000 workers in 2020, according to the Myanmar Garment Manufacturers Association.