Concerned About The Coup, Singapore Conglomerate Cancels Cooperation With Myanmar Military Companies

Demonstrations against Myanmar's military coup. (Wikimedia Commons / Ninjastrikers)

JAKARTA - Singapore's leading conglomerate Lim Kaling has decided to pull out of a joint venture with ties to the military-owned conglomerate of Myanmar.

Lim based his decision on a military coup that was followed by the detention of hundreds of figures in Myanmar, including Myanmar leader Aung San Suu Kyi and Myanmar President U Win Myint.

"I am concerned. As a result, I decided to quit my investment in Myanmar, releasing a third of my shares in a joint venture that owns RMH Singapore Pte Ltd”, he said, cited from The Irrawaddy.

The military-owned conglomerate Myanmar Economic Holdings Public Co. Ltd. (MEHL) and RMHS jointly operate Virginia Tobacco Co. Ltd. (VTCL). RMHS owns a 49 percent stake in VTCL, while MEHL owns the remainder.

This joint venture has been running since 1993. VTCL has a monopoly on the cigarette market in Myanmar, producing the country's most popular cigarette brands, The Red Ruby and Premium Gold.

"It is the only investment I have left in this country, which started nearly three decades ago under very different circumstances", said Lim.

"I have always been a passive minority shareholder with no direct involvement in Virginia Tobacco operations", he added.

He said the joint venture started with a friend in 1993 after seeing economic opportunities in Myanmar because the country was opening up to other worlds.

"Through these efforts, we hope to help the country spur economic growth, create jobs and improve living standards", recalls Lim, who is also the co-founder of the Hong Kong-listed Razer gaming group.

Last week, the Japanese beverage giant, Kirin decided to cut ties with MEHL in the beer business as a result of the coup. Kirin is known to invest together with MEHL in Myanmar Brewery and Mandalay Brewery.