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In the wake of a Singapore government investigation, exports dropped from more than US$110 million to just over US$10 million.
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Louisa Tang
The flow of weapons and military supplies from Singapore-based entities to Myanmar has “dropped dramatically” following a government probe, said United Nations rights envoy Tom Andrews in a new report released on Wednesday (Jun 26).
The Singapore government began looking into the matter last year when 138 Singapore-based entities were identified by Mr Andrews as being involved in the flow of such supplies to Myanmar’s military junta.
According to Wednesday’s report, exports from Singapore dropped from more than US$110 million between April 2022 and March 2023, to just over US$10 million in the same period the following year.
Mr Andrews, who is the UN special rapporteur on the situation of human rights in Myanmar, told CNA’s Asia Now programme that Singapore was a “standout” in the global decrease of weapons being shipped to Myanmar.
“Singapore was at one point, the centre of financing (for) many of these military procurement transactions, controlling or processing 70 per cent of them a year ago. That's down to 20 per cent,” Mr Andrews said.
A report he published in May last year found Singapore-based entities were the junta’s third-largest source of weapons and materials.
“(This is) a significant step in the right direction for Singapore. On the other hand, we have the opposite direction with respect to Thailand,” he added.
Myanmar’s military seized control of the country in a coup and ousted a democratically elected government three years ago. Since then, the country has been in turmoil with thousands killed and millions displaced.
The coup sparked sanctions imposed by Western countries in efforts to thwart the junta’s ability to access money and purchase weapons for use on anti-coup forces.
THAILAND IS NOW LEADING SOURCE
In his latest report, Mr Andrews noted that Thailand has now become the junta’s leading source of supplies purchased through the international banking system.
The transfer of weapons and related materials from Thailand-registered companies doubled from over US$60 million in the 2022 fiscal year to more than US$120 million the following year.
Unlike Singapore, the Thai government does not have an explicit public policy position opposing the transfer of weapons to Myanmar, said Mr Andrews.
According to the report, the junta’s purchases previously made from Singapore-based entities, including parts for Mi-17 and Mi-35 helicopters, are now being sourced from Thailand. The report said the junta uses these helicopters to transport soldiers and conduct airstrikes on civilian targets.
Thai banks, including Siam Commercial Bank, have been crucial in this shift, said Mr Andrews.
The country’s oldest commercial bank facilitated over US$5 million in transactions related to Myanmar military procurement in the 2022 fiscal year. This skyrocketed to more than US$100 million in 2023.
Mr Andrews expressed hope that Thailand will follow Singapore’s example in investigating and curbing the flow of arms into Myanmar.
He stressed that in both countries’ cases, he found no evidence of the governments’ involvement or awareness of the transactions.
“Last year, when we issued the report indicating the entities from Singapore involved in this trade, the Singapore government launched an investigation, and that investigation led to this significant drop,” he pointed out.
“We're hoping that Thailand will follow suit, and we'll see a similar trend next year from Thailand that we've seen this year from Singapore.”
SINGAPORE REITERATES "PRINCIPLED POSITION"
Singapore has taken a “principled position” against the Myanmar military’s use of lethal force against unarmed cvilians, said its Ministry of Foreign Affairs (MFA) on Friday.
MFA pointed out that Mr Andrew’s new report underscored the “effectiveness of Singapore's policy”, especially measures imposed by the country's financial institutions.
Singapore’s policy is to prohibit the transfer of arms to Myanmar. It also does not authorise the transfer of dual-use items which have been assessed to have potential military application and where there is a serious risk of them being used to inflict violence against unarmed civilians.
“At the same time, it is not the intention of the Singapore government to block legitimate trade with Myanmar,” said MFA’s spokesperson.
Since February 2021, the Monetary Authority of Singapore (MAS) has been engaging Singapore’s financial institutions on measures to guard against money laundering and terrorism financing risks emerging from the situation in Myanmar.
Methods such as the deployment of data analytics to better identify risks and apply appropriate risk mitigation measures, particularly around the detection of front and shell companies being used to potentially evade sanctions, have been successful among these institutions, said MFA's spokesperson.
Apart from financial institutions, the government also conducts regular outreach to companies to ensure alignment with Singapore’s export control policy on Myanmar.
Inter-agency efforts are in place to ensure Singapore’s export control is not being undermined while ensuring that legitimate trade with Myanmar is not blocked, said MFA.
“Legitimate trade and financial links between Singapore and Myanmar are necessary to support the livelihoods of the Myanmar people,” said the ministry.
Singapore has been “very careful to avoid inadvertently causing greater hardship” for Myanmar’s population, MFA added.
MFA said it is awaiting specific and actionable information from Mr Andrew’s office to be able to conduct necessary checks on the leads provided in his new report.
Related:
Singapore has worked to prevent the flow of arms into Myanmar: MFA in response to UN expert
No sales of arms to Myanmar for 'a very long time': Vivian Balakrishnan
Singapore does not authorise transfer of arms or 'items with potential military application' to Myanmar: MFA
OVER 5,000 CIVILIANS KILLED
The UN’s investigation into the Myanmar military government's supply chain showed international sanctions significantly reduced its ability to secure funds and procure weapons.
However, it said not all countries are doing enough and the junta is still adept at evading scrutiny by the international banking system.
Since the coup in 2021, more than 5,000 civilians have been killed. Three million have been displaced and more than 20,000 political prisoners remain behind bars, said Mr Andrews in his report on Wednesday.
Military airstrikes against civilian targets have increased five-fold over the last six months, the report added.
After the junta lost thousands of soldiers to casualties, defections and surrender, it announced a conscription programme in February. This further inflamed public opposition and resistance by young people.
Faced with these issues, the junta counted on two primary resources from abroad – weapons and money – to sustain itself, added Mr Andrews.
Related:
CNA Explains: What’s happened since Myanmar’s coup 3 years ago?
On a positive note, the volume of military supplies purchased by Myanmar through the international finance system dropped by a third over the past year, from US$377 million to US$253 million.
However, Mr Andrews said that Myanmar has been aggressively seizing opportunities to alter its weapons sources, exploiting gaps in sanctions, shifting financial institutions, and taking advantage of a lack of political will by UN states to coordinate and enforce actions.
He reiterated that the international community needs to stop the flow of weapons into Myanmar and work together to impose coordinated sanctions against the junta.
He told CNA that US and Australia sanctions on two major Myanmar state-owned banks in the past year “had a very important impact”.
“One of my recommendations is that governments sanction these banks, particularly Myanmar Economic Bank – that all countries follow suit so it's a coordinated effort of sanction, and that banks stop conducting transactions that involve any Myanmar state bank,” Mr Andrews added.
He noted that Myanmar Economic Bank conducts “very little business” with individual citizens or businesses, who also have options in the private sector.
“So, a significant impact is going to be on the Myanmar junta’s ability to secure these weapons, not on people in Myanmar,” he said.
Related:
International community needs to stop flow of weapons into Myanmar, impose coordinated sanctions: UN rights envoy
Source: CNA/lt(dn)
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