Myanmar activist group urges boycott of Shangri-La Asia for alleged ties with military

Activist group "Justice for Myanmar" has called out Shangri-La Asia for "continued business with the Myanmar military" through the Sule Square development. It urged consumers to boycott Shangri-La hotels and asked investors to divest. Sule Square is a mall and office development in Yangon by Shangri-La and according to the activist group, it is on land leased from the quartermaster general’s office of the Myanmar army, which is responsible for the purchase of arms.

Justice for Myanmar also alleged in a statement that Shangri-La Asia, founded by Malaysian tycoon Robert Kuok and owned by Kuok Group, has "failed to respond to the recommendations of the UN International Fact-Finding Mission to cut ties with the military". Its spokesperson Yadanar Maung also called for tenants of Sule Square, including the World Bank, Coca Cola, the American Chamber of Commerce in Myanmar and Yara to end all leases and cut all ties with the Myanmar military.

At the same time, the spokesperson also called upon the international community to impose targeted sanctions on the Myanmar military, their businesses and significant business associates. In August 2019, the UN International Fact-Finding Mission urged the international community to sever ties with Myanmar's military and the web of companies it controls and relies on. It previously explained that the revenues the military earns from domestic and foreign business deals "substantially enhances its ability to carry out gross violations of human rights with impunity".

Meanwhile, the spokesperson also called upon the Hong Kong Stock Exchange to take a page out of the Singapore Stock Exchange's (SGX) book and initiate regulatory action against Shangri-La Asia. In February, SGX initiated regulatory action against Emerging Towns & Cities Singapore for land lease payments to the Myanmar army. According to The Business Times, SGX issued a list of queries to the developer over its project in Myanmar after it was called out by activists over ties to the Myanmar military.

"We are appalled at Shangri-La Asia’s continued business with the Myanmar military, which is committing heinous atrocities against the people of Myanmar," the spokesperson said.

"We call for decisive action against Shangri-La until they end their business with the Myanmar military. Businesses must stand with the people of Myanmar, who are risking their lives to build a federal democracy that is free from the military’s violence and oppression," the statement added.

World Bank's spokesperson told MARKETING-INTERACTIVE that the lease for Sule Square was signed a number of years ago based on World Bank Group procurement policies for renting and acquiring real estate space, which apply globally and take into consideration security and other requirements. "We are currently assessing the situation in Myanmar, according to internal policies and procedures that we are following carefully," the spokesperson said. 

Meanwhile, Coca Cola Myanmar's spokesperson said as a US-based company, before engaging any vendor or service provider in Myanmar, it always conducts strict due diligence in accordance with the US government’s Specially Designated Nationals and Blocked Persons List issued by the Office of Foreign Assets Control. "Our decision on office location is reviewed periodically based upon compliance with this requirement together with other key business needs," the spokesperson added. MARKETING-INTERACTIVE has reached out to Shangri-La, and the American Chamber of Commerce for comment.

Shangri-La was not the only brand to have been called out this year. In February, images circulating online called for the boycott of Singaporean F&B brands - Tiger Beer, BreadTalk, Ya Kun Kaya Toast, Beauty In The Pot, Crystal Jade Kitchen, and Ippudo. The pictures contained an image of the Singapore flag and the brands' logos being crossed out. The hashtags #BoycottSingapore and #WhatsHappeningInMyanmar were also included on the graphics.

Since the coup, several companies have ended their ventures in Myanmar due to mounting pressure from the public. Japanese beverage company Kirin ended its brewing joint ventures with connections to the Myanmar military in February, while co-founder and director of Razer Lim Kaling said disposed of his one-third stake in a joint venture that owns RMH, which in turn owns 49% of Burmese cigarette maker Virginia Tobacco Company. Just last week, South Korean industrial company Posco announced its plans to end a steel venture with a Myanmar-military controlled conglomerate, Myanmar Economic Holdings, Financial Times reported.

Tech firms such as Google and Viber also said in March that they are reviewing Myanmar military-backed ads in the country. At the same time, the junta is also seeking an opportunity to explain the real situation behind the coup by appointing Israeli-Canadian lobbyist Ari Ben-Menashe and his firm, Dickens & Madson. They were paid US$2 million to "assist in explaining the real situation” of the military coup to the US and other countries and to represent the junta in Washington.

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