Japanese Business Companies Worried Over Myanmar Turmoil

As the political turmoil in Myanmar continues six months after the military coup, Japanese companies, whether operating there or tapping the country for skilled or low-wage workers, are worrying about the long-term impact on their business strategies, according to Kyodo News agency.

Photo Insert: Demonstrators march during a flash mob protest against the military coup in Myanmar

Many of the more than 400 Japanese companies with local operations have taken steps such as delaying business plans while also, in some cases, reassessing their connections with the military in the wake of the Feb. 1 coup and the violent crackdown on peaceful protesters.

Kirin Holdings Co., for instance, said in February that it will end its partnership with Myanma Economic Holdings Public Co., a conglomerate that the United Nations has identified as being owned by senior members of the military. Kirin is currently in negotiations over the plan.

Partly due to safety reasons, Suzuki Motor Corp. has suspended operations of its two plants in Yangon, while the start of a new plant is likely to be postponed from September. Toyota Motor Corp. has also delayed the start of a new auto plant in the Thilawa Special Economic Zone near Yangon.

Among other Japanese firms in Myanmar concerned about the turmoil, instant noodle maker Acecook Co. has halted production in the country and brought Japanese staff back home in consideration of their safety.

"Prospects are cloudy and we cannot tell whether we should resume operations or exit the country," a spokesperson said.

Meanwhile, companies that have recruited skilled workers from Myanmar to work in Japan have faced disruptions as well.

Yamato Manufacturing Co., a leading manufacturer of noodle-making equipment based in the western Japanese prefecture of Kagawa, famous for its udon noodles, has stepped up hiring workers from Southeast Asia partly with the aim of strengthening its competitiveness in the region and building a production plant there.

Yamato's president, Kaoru Fujii, explained that fewer young people in Japan wish to become engineers, while foreign job candidates including those from Myanmar are usually more fluent in English and more eager to learn compared with Japanese job seekers.

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