How Myanmar's Military Class Built a Nearly Sanction-Proof Business Empire
Myanmar's military has built an economy largely centered around a limited number of institutions created by its Defense Ministry, cementing the military's role at the center of the Southeast Asian state's economic dealings. A new report from Bloomberg takes a look at how the military class skirted Western sanctions. Driving the military's continued hold on the economy are two Defense Ministry-founded and -operated conglomerates, Myanmar Economic Holdings Public Co. Ltd. and Myanmar Economic Corp. The two companies employ thousands of civilian and military personnel, control various domestic industries and offer a variety of essential goods for the citizenry, Bloomberg reported. According to analysts, this structure means the wave of sanctions relating to the military takeover of the country in February have a minimal effect.
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“Our business is domestic-focused, so we don’t see many problems,” Myint Than, who retired as MEC general manager in 2019, told Bloomberg. He remains with the company as a consultant. “There could be some difficulties in the purchase of some raw materials, but we can buy them from China. It would be a lie if we say there is no impact [of the sanctions], but it’s not severe.” As of now, the strategy's working. Some foreign companies are staying in Myanmar and regional neighbors have not followed the West to impose sanctions, the report said.
To understand the military's successful hold on the economy, Bloomberg pointed to the mining industry. Mining represents the country's largest industry, with jade being the most commonly mined mineral in the nation, the report said. It estimated that at various periods since 2014, Myanmar's jade trade could have been worth more than $30 billion -- nearly half of the country's GDP. MEHL is the single largest holder of jade mining permits in the country, Bloomberg said.