Ends Agreement With Myanmar Military Regime Company, Japan's Kirin Files Commercial Arbitration

Illustration of Myanmar Brewery's production facilities. (Source: Myanmar Brewery)

JAKARTA - Japanese beverage giant Kirin Holdings Co. said Monday it had filed commercial arbitration to end its joint venture partnership with Myanmar Economic Holdings Public Co., Ltd., (MEHL) calling for a "fair and balanced" process to end its beer business deals with entities linked to Myanmar's military regime. .

Kirin's Singapore subsidiary took action with the Singapore International Arbitration Center after it failed to negotiate successfully over the handling of Myanmar Brewery Ltd., the Southeast Asian nation's largest beer company, one of two ventures Kirin has had with Myanmar.

Meanwhile, another project involves Mandalay Brewery Ltd., whose fate is still being discussed by both parties.

Kirin said in a statement that the Tokyo-based company made repeated attempts to negotiate with MEHL to end the partnership. However, the Myanmar entity was uncooperative in the negotiations, effectively rejecting the proposed proposal.

In addition, MEHL unilaterally petitioned the Yangon district court on November 19, to liquidate Myanmar Brewery, a company 51 percent owned by Kirin and 49 percent by Myanmar entities.

"Kirin Holdings said they will resolutely protest this unjustified motion, which was made in disregard of the Joint Venture Agreement and violates Myanmar's laws and regulations," the statement quoted Kyodo News December 6 as saying.

Kirin acquired Myanmar Brewery in 2015. Regardless of Kirin's move, it is not known what the response of the Myanmar military regime will be, whether it will comply with the decision issued by the Singapore arbitration center later.

Kirin accused the Myanmar entity of providing "management of welfare funds for the (Myanmar) military," known as the Tatmadaw, which seized power in a February 1 coup, toppling civilian leader Aung San Suu Kyi and her party, the National League for Democracy.

The Myanmar Coup. VOI editors continue to monitor the political situation in one of the ASEAN member countries. Civilian casualties continued to fall. Readers can follow news about the Myanmar military coup by tapping this link.