After A Coup, The Japanese Beverage Giant Cuts Ties With The Myanmar Military Company

Illustration. (Wikimedia Commons / Kojach)

JAKARTA - Japanese beverage giant Kirin Holdings Co. Ltd, decided to end cooperation with companies owned by the Myanmar military. The decision was taken after the Myanmar military staged a coup and detained State Counselor Aung San Suu Kyi and President U Win Myint earlier this week.

Kirin Holdings Co Ltd on Friday said it would end its joint venture partnership with Myanma Economic Holdings Public Co Ltd (MEHL). Kirin holds 51 percent of Myanmar Brewery and Mandalay Brewery, of which MEHL holds the remainder.

This statement was issued five days after the coup. It is known, MEHL provides welfare fund management services for the Myanmar military, as reported by The Irrawaddy.

"Given the current circumstances, we have no choice but to end our current joint venture partnership MEHL. We will take steps as urgent matters to enforce this termination," Kirin said.

Kirin said the company president and CEO, Yoshinori Isozaki, was deeply concerned about the recent military actions in Myanmar, which go against the human rights standards and policies that Kirin is very concerned about.

Kirin has previously faced international criticism for his partnership with the Myanmar military amid accusations of genocide against the Rohingya. Last year, Kirin hired Deloitte Tohmatsu Financial Advisory to conduct an independent review of MEHL's financial structure and governance. However, his investigation into MEHL's military connections ended inconclusive as access to information was denied.

Despite this, Kirin stopped making dividend payments to the military-owned company in November. Kirin's business in Myanmar recorded an operating profit of US $ 115 million (161.84 billion kyats) in 2019, according to the company. Kirin is known to have invested in Myanmar in 2015.

Rights group Justice for Myanmar praised Kirin's decision and called on the international community to impose targeted sanctions on businesses belonging to the Myanmar military, their directors and significant business associates.