Burma’s Money Transfers in Limbo Thursday, Oct 25 2007

Wai Moe, The Irrawaddy, 24 Oct 2007

Money transfers between Burma and Singapore through the United Overseas Bank have been cancelled indefinitely and non-bank money transfers via agents from Thailand to Burma have been discontinued temporarily, said business sources.

A source close to Burmese businessmen in Singapore told The Irrawaddy on Wednesday that some trading companies transferring money from Burma to Singapore in the past week have not received the remittance and no reason was disclosed for the delay.

“It is unusual because previously the money transfer process was about two working days. Now it is more than a week,” he said.

He also said that he did not know whether the transfer delay was related to the US sanctions blocking certain transactions related to Burma.

After the junta’s brutal crackdown on peaceful protesters and monks, the US imposed further sanctions against the Burmese military government on September 27 and October 19—including freezing the bank accounts of 25 military officials and 12 close associates of the junta.

A UOB agent in Rangoon refused to comment when the Irrawaddy enquired about the cessation of money transfers.

According to a report by the Burma Campaign UK, 10 Singapore firms are on its “Dirty List” of companies for their business with the Burmese junta, including the Development Bank of Singapore (DBS), the United Overseas Bank (UOB), the Overseas Chinese Banking Corporation (OCBC), and conglomerate Keppel Corp.

Business sources said that among those Singaporean banks, UOB is one of the main conduits for money transfers between Burma and Singapore. It is also connected to the Myanmar Foreign Trade Bank, said the sources.

Meanwhile, private agents, or “handies,” who administer non-bank money transfers from Thailand to Burma, have ceased operations indefinitely as of last week, said sources. An agent in Bangkok told The Irrawaddy on Wednesday that they had stopped work because of the uncertain situation in Burma. The handies also halted money transfers to Burma temporarily during the mass protests in Burma in September.

But non-bank money transfers to Burma from other Asean countries, such as Singapore and Malaysia are still running as usual, said sources in the two countries.

Analysts said remittances to Burma from overseas migrant workers have dropped since the crackdown on street protesters. The reason for the drop is not the insensitivity of the migrant workers, but worries that the military regime might suddenly cancel currency notes once again.

Oversea Burmese workers have been using these handies to send money to their families for many years. Business agents, who want foreign currency, buy Burmese migrant workers’ money and their agents in Burma deliver the money to the workers’ families. This kind of cash transfer is not official and both parties operate on a basis of trust. “No one needs to pay tax this way,” said an agent.

Tens of thousands of Burmese working in Thailand, Malaysia and Singapore use informal financial “fences” to remit money home.

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U.S. Focuses on Burmese Tycoon Thursday, Oct 25 2007

U.S. Focuses on Myanmar Tycoon, Wall Street Journal, 24 Oct 2007

Blacklisting of Tay Za is meant to put pressure on nation’s ruling junta

By JAY SOLOMON in Washington and JAMES HOOKWAY in Bangkok, Thailand

Seeking to constrict the Myanmar junta’s financial lifelines to the rest of the world, the Bush administration is targeting the businesses and family of tycoon Tay Za, viewed as one of his country’s biggest economic players.

Mr. Tay Za’s business empire has flourished in recent years thanks to his intimate ties to the junta’s top generals, according to Myanmar dissidents and Southeast Asian businessmen. His empire now spans from gem trading to an international airline.

As a result, U.S. officials view Mr. Tay Za as one of Myanmar’s primary conduits to the rest of the world, using its main city, Yangon, and Singapore as his bases. And the Bush administration is increasingly focused on drying up Mr. Tay Za’s finances as a means to hurt the government, senior Bush administration officials say.

Over the past month, the Treasury Department enacted a string of sanctions barring American citizens and entities from doing business with dozens of senior generals in Myanmar, a country the U.S. government calls Burma.

The Treasury Department’s actions were sparked by the junta’s violent crackdown last month against Buddhist monks and political activists seeking democratic changes. At least 30 people were killed and hundreds arrested, according to diplomats and human-rights activists.

The Treasury Department has also begun targeting private Myanmar citizens and companies seen providing material and financial support to the junta.

Friday, Washington blacklisted Mr. Tay Za, who is 40 years old, and his wife and son, according to the Treasury Department. It ordered a freeze of any assets they held in the U.S. and barred U.S. companies from doing business with them.

Attempts to reach Mr. Tay Za for comment were unsuccessful.

Treasury also sanctioned Mr. Tay Za’s principal businesses in Myanmar and Singapore. Among those are: Air Bagan Ltd., an international Myanmar airline; Htoo Wood Products Pte Ltd., a timber company with offices in Singapore; and Htoo Trading Co., a diversified holding company based in Yangon.

U.S. officials say they are considering additional sanctions against other Myanmar companies, banks and individuals engaged in human-rights abuses or aiding the junta.

“Business as usual is unacceptable” in Myanmar, President Bush said last week in announcing more sanctions. “I ask other countries to review their own laws and policies, especially Burma’s closest neighbors.”

U.S. officials say they are seeking assistance from China, India, Thailand and Singapore in cracking down on Myanmar’s generals and its supporters. Mr. Tay Za and his family are believed to live part of the time in Singapore, and some of their businesses have offices in the Southeast Asian city-state.

U.S. officials acknowledge it remains uncertain just how supportive these Asian countries will be in imposing financial sanctions to isolate Myanmar’s leadership. Singapore Foreign Minister George Yeo Monday rejected suggestions that the Association of Southeast Asian Nations, of which Singapore and Myanmar are members, should impose sanctions on the regime.

“Each country must respond according to its own interests and its own value system,” Mr. Yeo told Singapore’s Parliament. “For their own domestic politics, the U.S. and Europe have got to take the positions that they are taking. That’s fine. We cannot take the U.S. position.”

U.S. officials and human-rights groups say they believe the Myanmar military has largely regained control over the country after last month’s protests and civic disturbances. They also say the military continues to track down, interrogate and arrest individuals believed to have supported the pro-democracy campaign.

United Nations special envoy Ibrahim Gambari is seeking to facilitate a dialogue between the Myanmar military and chief opposition leaders, including Nobel Peace Prize winner Aung San Suu Kyi. The U.S. and many European countries say they will seek official U.N. sanctions and an international arms embargo should the dialogue process fail.

Businessmen and others who frequently visit Myanmar say Mr. Tay Za keeps a lower profile than some other executives close to the ruling junta. He does this partly to avoid becoming the target of international investigations, but also to ensure he can still move his fortune around the world, these people say.

“He’s a shrewd operator who knows when to keep his head down,” says an academic who follows Myanmar.

Mr. Tay Za began his business in 1990, exporting timber from Myanmar’s thick forests. He later diversified into transport, creating a trucking network that helped transport the timber acquired from his logging business to Yangon and beyond.

Since then, he has built hotels — including an ecotourism venture — and started Air Bagan in 2004, flying to destinations within Myanmar as well as to Thailand and Singapore.

Diplomats and other Myanmar specialists say Mr. Tay Za often focuses on building alliances with the children of the country’s top officials — people who, as he has, have traveled around Asia and beyond and are more commercially savvy than their parents. His Htoo Trading Co. took over a company started by Aung Thet Mann, son of the third-most senior general in the junta, Thura Shwe Mann.

In 2005, Mr. Tay Za’s business dealings began to attract the attention of foreign governments. The European Union issued a visa ban on Mr. Tay Za and his family because his businesses allegedly benefited from their close association with the ruling junta, and issued an order to freeze his assets.

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Singapore’s Minister For Foreign Affairs Said Absolutely Nothing In Parliament Thursday, Oct 25 2007

Media Release: George Yeo said absolutely nothing in Parliament, SDP, 23 Oct 2007

The Government’s responses over its dealings with the Burmese military regime are evasive, patronizing, and utterly devoid of substance. (Pseudonymity: See below for excerpts of George Yeo’s replies in Parliament)

Answers like “our defence sales have not been substantial”, “we will behave in a responsible manner”, and “‘arms sales have been carefully limited to items that are not suitable for countering civilian unrest” are like cotton-candy: sweet, puffy and full of air.

No verifiable facts were produced. What does Minister George Yeo mean by “substantial”, what is the Government’s definition of “responsible”, and pray tell what on earth is “carefully limited”?

If this passes off as “debate” in Parliament, then we are in deeper trouble than we think.

Why should we believe these bald assertions that the Government makes? Why does the Government not open the books of GLCs for scrutiny?

The authorities have been less than honest with the Singaporean people in this matter. For example, when allegations first surfaced that our funds, through the GIC which Mr Lee Kuan Yew runs, were linked to Burmese druglords through an investment fund called the Myanmar Fund, the PAP Government prevaricated in answering questions as to its involvement. (see here)

This is why general statements asseverating goodness in its dealings with the Burmese junta will not do. Singaporeans have the right to ask and are entitled to know details of what our involvement in Burma.

The more the Government avoids giving hard facts and figures, the more suspicions it raises and the more Singaporeans must press it for answers.

When our funds are used by a murderous regime that targets innocent civilians and peaceful protesters, a dollar is one too many.

Mr George Yeo needs to stop deluding himself and deceiving the people that the Government’s involvement in Burma is for “moral influence”. Considering that we hang small-time drug peddlers but deal with big-time Burmese druglords, Mr Yeo’s claim is a bit rich.

The SDP reiterates its stand: Singapore must stop selling arms of whatever nature to the regime in Burma, pull out our investments there and freeze the assets of the corrupt generals and druglords.

Chee Soon Juan
Secretary-General
Singapore Democratic Party

$$$$$$$$$$$

Excerpts from transcript of replies by Minister for Foreign Affairs, George Yeo, to questions on Burma in Parliament on 22 Oct 2007

Mr Siew Kum Hong: To ask the Minister for Foreign Affairs (a) whether Singapore has supplied arms and weapons to Myanmar; (b) what is the total value of investments by Government-linked companies in Myanmar; (c) what is the total value of remittances from Myanmar into Singapore over the past 5 years; and (d) whether the Government intends to take any action, either by itself or as ASEAN chair, in addition to making statements and writing letters to the junta.

Ms Sylvia Lim: To ask the Minister for Foreign Affairs whether and to what extent Singapore businesses are or have been engaged with the Myanmar authorities in trade and consulting in the field of military hardware and surveillance equipment.

Ms Sylvia Lim: To ask the Minister for Foreign Affairs whether and to what extent there are arrangements in place for military cooperation between Singapore and Myanmar.

Minister

11. Singapore has limited economic links with Myanmar. Before the Asian financial crisis, we did encourage our businessmen to invest and to do more in Myanmar. At that time, there was hope that the Government was taking the Indonesian road from an authoritarian military government to constitutional democracy. But when Suharto fell in 1998, the Government in Yangon froze and the economy slid backwards. Generally speaking, our businessmen are not doing well in Myanmar and many regret having invested there. Singapore companies’ cumulative total direct investments in Myanmar for the year ending 2005 was only S$742 million. MTI does not keep track of how much of this is by GLCs, because the Government is not involved in the individual investment decisions of GLCs.

12. Overall, our total trade with Myanmar last year was S$1 billion, which represents only 0.1% of Singapore’s total trade. Myanmar ranked 50th among our trading partners. Therefore, our policy on Myanmar does not hinge on this. Instead, our actions are guided by what is best for the long-term interests of ASEAN.

13. As for remittances, MAS does not track the amount of money remitted into or out of Singapore by any country. For an international business and financial centre like Singapore, funds can be transferred for various purposes including payments for goods and services, trades on the stock exchange, even for school fees. But MAS operates a strict and rigorous regime against money laundering, like all other leading financial centres. Banks and financial institutions in Singapore are required to institute strict procedures, including the need to identify and know their customers, and monitor and report any suspicious transactions. Our rules are vigorously enforced. Should there be links with illicit activity, MAS will not hesitate to take necessary action.

14. If there are UN mandated sanctions against Myanmar, we will of course comply with them. Whatever policy we adopt must apply to all companies operating in Singapore, not just owned by Singaporeans.

15. Singapore has very few defence interactions with Myanmar. But we have to maintain links with the military because it is a key institution. These are largely limited to interactions at multilateral events such as ASEAN-related meetings, international defence exhibitions, and sports activities like the Army Half Marathon. As far as defence sales are concerned, it is established policy of the Government not to divulge details publicly. Myanmar is not subject to any UN arms embargo. If there is any UN sanction against Myanmar, Singapore will of course abide by it. Nevertheless, I can say that over the years defence sales to Myanmar have not been substantial, and have always been carefully limited to items that are not suitable for countering civilian unrest. There have not been any defence sales to Myanmar in recent years and, going forward, we will continue to behave in a responsible manner.

Ms Sylvia Lim: Mr Speaker Sir, what concerns me is to what extent Singapore might be implicated in somehow propping up the military authorities in Burma or Myanmar in their oppressive tactics. And the reason I ask this, there have been some press reports recently as well as in the past. Just to cite one example, a Melbourne newspaper called The Age last month came up with an article called “Web of Cash, Power and Cronies” which reiterated in fact, soft contents from earlier articles in Jane’s Intelligence Review in 1998 . And the content of those articles basically is to say that Singapore has in fact been much involved in shipping ammunitions and other military equipment to Myanmar and also been instrumental in helping to set up a cyber centre where intelligence equipment was subsequently used to monitor activists. So, I would like to ask the Minister to comment on these articles, whether there have been some activities as such, in the past, to what extent it has minimised now. Such clarity I think would be very important for us.

Minister: On the question of military sales, I’ve given a full answer earlier. It’s been insubstantial. We’ve always made sure they were items which could not be used against civilians and there has been no sales in recent years. I shouldn’t go on beyond that because it is our established policy not to divulge details of military sales. We have replied to the Australian newspaper. As for the reports about helping them establish a listening facility to monitor civilian dissidents, there’s no truth in that. We have made repeated clarifications to Australian newspapers. They have printed our replies, but somehow the journalists who wrote subsequently ignored those replies we’ve made. As for their accusations about us being involved in drug money laundering, it goes back quite a long time to Dr Chee Soon Juan. We’ve clarified again and again but they keep being recycled and that article you’ve referred to contains some of that recycled hash.

Pseudonymity: Do also read Leong Sze Hian’s Further questions about Myanmar and t-shirts

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