Myanmar junta blacklists 28 companies for failing to repatriate export earnings

Myanmar’s military regime has blacklisted 28 companies, including two Chinese state-owned firms, for failing to remit export earnings of more than US$500,000 to junta-designated domestic banks. The blacklisted companies operate in the logging, tourism, electronics, and import-export sectors and are based in Karen State and Yangon, Tanintharyi, and Bago regions. Among them are China International Forestry Group Corporation, Ltd. and Chengfang Co., Ltd., both owned by the Chinese government. The Japanese electronics company IIDA Electronics (Myanmar) Co., Ltd., which imports and distributes around 20 electronic products, including electric motors, air conditioners, and transformers, was also placed on the blacklist. The junta-controlled Directorate of Investment and Company Administration reported that these companies had failed to repatriate export earnings of $500,000 or more. In an effort to shore up Myanmar’s foreign currency reserves, the regime has mandated that all companies operating in the country must deposit their export earnings in designated local banks. Until the end of last year, earnings from exports to other Asian countries had to be deposited into one of the banks within a month and a half. Since then, this period has been reduced to one month. The period for earnings from exports to countries outside of Asia is two months. Foreign currencies earned from exports are exchanged by the junta at rates lower than the market price. The regime has taken various measures in recent months to keep hard currencies in the country as the kyat’s fall since the 2021 coup continues, making imports more expensive. Last month, it introduced a barter system that would allow companies to import goods more freely if they could pay for them with products exported from Myanmar instead of cash. It has also cracked down on businesses accused of helping Myanmar nationals to transfer funds to neighbouring Thailand to purchase condominiums. Meanwhile, the regime has also targeted merchants accused of defying price controls imposed in a bid to curb inflation. Earlier this month, it arrested nearly two dozen gold dealers for selling the precious metal, which has more than tripled in value since the coup, for more than the set rate. The regime has also put sellers of basic commodities such as rice and cooking oil in its sights, with some complaining that they are being treated like criminals. On Monday, the regime blacklisted eight companies for alleged malfeasance in importing palm oil. One of the companies, Ayeyar Hinthar Holdings, was founded by prominent businessman Zaw Win Shein, who also operates A Bank and Ooredoo Myanmar.

Myanmar junta blacklists 28 companies for failing to repatriate export earnings

Two Chinese state-owned firms and a Japanese electronics company are among the targets of the measure

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