Companies struggling to land out of Myanmar are facing the prospect of a plane crash

International companies are struggling to get rid of military-related businesses in Myanmar following a coup d’etat in February and face the threat of damage to its reputation and sanction if it fails to do so. But many find that getting out is easier said than done.

Companies in Japan, South Korea and Singapore are among those expected to be liquidated by foreign portfolios for failing to terminate trade agreements with state-run enterprises.

But nine months after the Aung San Suu Kyi government was overthrown, businesses around the world have found few buyers of their local goods and the country is suffering. a major economic collapse and civil strife after the conspiracy.

“Losing contact with the Myanmar military is extremely difficult since the coup d’état, but businesses must stop, as this will save the lives of Myanmar people and end military violence,” said Yadanar Maung, a spokesman for Justice for Myanmar. .

The military has killed more than 1,270 people and detained more than 10,000, according to the Assistance Association for Political Prisoners, a civil rights group, and has used violent tactics to overthrow the military. rebellion northwestern Myanmar.

The US, EU, UK and Canada are involved he was punished against a number of military companies or individuals.

Shortly after the terrorist attack, the international community sought to eliminate the company’s military-related operations.

Companies that had a direct relationship with military companies and have been under constant pressure from campaigners, such as Japanese beer maker Kirin, have said they are leaving. Some, such as the Norwegian group Telenor, have announced their resignation from Myanmar because of Junta’s poor working conditions.

APG, a Dutch pension fund with $ 700bn under its leadership, has forced Kirin and Posco, a South Korean metalworker, to break ties with Myanmar-controlled military forces. Despite promises from both companies, APG threatened to quit if they did not make significant progress by next year.

“Twelve months is enough. . . We have waited long enough, “said Park Yoo-kyung, a consultant at APG.

Telenor’s attempt to leave Myanmar has been a sign of the difficulties that foreign businesses face.

The Norwegian government-backed company announced in July that it would sell its local operations to the M1 Lebanese Group for $ 105m, having already stopped investing in the country. But the junta-appointed telephone ministry has said so zavuta pa deal, wanting Telenor to find a new buyer, controlled by Myanmar.

The company has already been criticized by campaigners for allegedly failing to curb or reduce the negative human rights impact on the sale of the M1, a group overseen by Lebanese Prime Minister Najib Mikati and his brother.

Telenor argued that his decision to sell came after he was pressured by the military government to develop a monitoring technology, which it said would violate EU and Norway sanctions against Myanmar.

Many international companies have suspended or closed local operations, but a number have not, prompting campaigners and investors to question their promises to leave the country.

Kirin and Posco, affiliated with Myanmar Economic Holdings Ltd, a non-partisan organization, have faced enormous pressure from campaign groups. He stressed that companies need to be prepared to give up their money if they are not able to get out of debt.

“If a company does not find a reliable buyer, it should shut down their business and avoid paying the military and its agents,” said Yadanar Maung.

To do did not give time such a sale, despite its commitment to do so, and those wishing to purchase will be reduced by the risk of penalties. The boycott following the company’s Myanmar-style liquor attack has also disrupted its interest.

“We are taking urgent action to end our contract with MEHL,” the Japanese team said. “We hope to find a way forward that will allow Kirin to continue to do well in Myanmar.”

Posco has taken a different approach. Another spokesman said the company trying to find the value of MEHL in his metalworking career – a move that demands separation from military interests – and assesses whether such an alliance could violate sanctions.

“We continue to urge MEHL officials to make a decision, but we have not received a response,” the company said.

But stockbrokers like Posco and Kirin are afraid that selling such items will disrupt their retail businesses.

Park said APG would soon be forced to flee because Kirin or Posco did not change the fund. “I don’t think there is any meaningful discussion going on,” he said.

Additional reports from Kana Inagaki and Leo Lewis in Tokyo