Foreign companies scramble to assess fall-out in Myanmar after coup (updated)

Yoma Strategic Holdings

01/02/2021 12:12

(Recasts with comments from non-Japanese companies)
    By Ritsuko Ando and Sam Nussey
    TOKYO, Feb 1 (Reuters) - Foreign companies from Japanese
retail giant Aeon to South Korean trading firm POSCO
International and Norway's Telenor scrambled to assess the
turmoil in Myanmar on Monday after a coup in the country once
feted as Southeast Asia's last big frontier.
    The Myanmar military seized power against the democratically
elected government of Aung San Suu Kyi, who was detained along
with other leaders of her party in early morning raids.
 urn:newsml:reuters.com:*:nL1N2K60LN
    Major multinational firms including Japan's Kirin Holdings
 2503.T  have pushed into Myanmar since Suu Kyi's party won a
landslide election in 2015 and established the first civilian
government in half a century.
    Although some investors have grown wary over the persecution
of the Rohingya Muslim minority, many companies have remained in
Myanmar, drawn by an emerging market of more than 50 million
people. 
    A spokeswoman for Japanese auto-parts maker Denso Corp
 6902.T  said it was struggling to reach staff after phone and
internet connections were disrupted, while a spokesman for Aeon
 8267.T , which has been planning to open a shopping mall in
Myanmar in 2023, said it finally got through to local staff via
the internet and was monitoring the situation.  urn:newsml:reuters.com:*:nL1N2K60LN
    Other foreign firms including Singapore's Overseas-Chinese
Banking Corp  OCBC.SI  and property group Yoma Strategic
Holdings  YOMA.SI  reported intermittent disruptions to their
business, while some closed their offices.  urn:newsml:reuters.com:*:nS7N2E700G
    "We have closed our Yangon Branch temporarily today in line
with the guidance from the Myanmar Bank Association. We have
confirmed the safety of all of our colleagues," said a
spokeswoman for Singapore's United Overseas Bank  UOBH.SI .
    POSCO International  047050.KS  said it had advised its
South Korean employees in Myanmar to work from home and the
company is closely monitoring developments.
    Norway's telecoms provider Telenor  TEL.OL  said it is
greatly concerned with the current situation.
    "Parts of the mobile network in Myanmar have been down, and
the situation remains unclear," it said.
       
    KIRIN UNDER PRESSURE
    The coup heaps more pressure on beermaker Kirin, which has
been reassessing its Myanmar venture after the United Nations
identified owners of Myanmar Economic Holdings Public Company
(MEHL), Kirin's local partner, as members of the Myanmar
military. 
    The military has been accused of genocide and other war
crimes against the Rohingya. Myanmar denies genocide, saying its
military was carrying out legitimate operations against Rohingya
insurgents who attacked police posts.
    A Kirin spokesman said it was monitoring the situation, and
still planned to take until the end of April to make a decision
about its activities in Myanmar. It recently said a third-party
probe into MEHL's military connections had yielded
"inconclusive" results.  urn:newsml:reuters.com:*:nL1N2JI06P
    Myanmar accounts for less than 5% of Kirin's global beer
sales, but is one of only a handful of its growing markets.
    Veteran public relations consultant Bob Pickard, speaking
about Japanese companies, said there was now a growing public
relations risk.
    "Japanese companies invested in Myanmar and especially those
with military connections now need to be agile in articulating
what these events mean for them," said Pickard, who worked in
Japan for many years.
    "'Business as usual' poses an acute risk a public relations
disaster for any Japanese companies that are slow to condemn
what has happened today."

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Myanmar military seizes power, detains elected leader Aung San
Suu Kyi     urn:newsml:reuters.com:*:nL1N2K60LN
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 (Reporting by Ritsuko Ando, Sam Nussey; Additional reporting by
Maki Shiraki and Yuki Nitta in Tokyo, Anshuman Daga and John
Geddie in Singapore, Heekyong Yang in Seoul and Supantha
Mukherjee in Stockholm; Editing by David Dolan and Kirsten
Donovan)
 ((Ritsuko.Ando@reuters.com; +81 3 6441 1743;))