Three leading Japanese companies have decided to pull out of a major Myanmar port project. The project is located in Thilawa Multipurpose International Terminal, in the Thilawa Township near Yangon.
The companies involved are Kamigumi, Sumitomo Corporation, and Toyota Tsusho. They chose to leave the project due to growing pressure from citizens and organizations in both Japan and Myanmar.
The main concern is the link between the project and Myanmar Economic Holdings Limited (MEHL). MEHL is controlled by Myanmar’s military. Many groups worry that the project supports human rights violations by the military government.
Because of these worries, the companies announced they have begun the process to exit the project. They also said they will take steps to ensure the safety of workers and help them find new jobs or support.
However, the companies have not yet explained how they will keep to international human rights standards. Nor have they made clear how they will manage the project’s assets after leaving. It is also not clear how they will make sure the Myanmar military will not benefit financially from the project once they leave.
Besides the three companies, two Japanese government-linked groups are involved in the project. These are the Japan International Cooperation Agency (JICA) and Nippon Export and Investment Insurance (NEXI).
Both groups have faced criticism from civil society organizations. The groups are accused of a lack of transparency about how Japanese public money is used in the project.
JICA has not been open about its role or about the funds used. NEXI has made only limited comments about the environmental effects of the project. However, it has avoided talking about the serious human rights issues connected to the military’s involvement.
Yuka Kiguchi, a representative from the Japanese NGO Mekong Watch, said, “JICA’s silence and NEXI’s narrow view of business risks are far from the ideal standards of business practice.”
Justice for Myanmar, another advocacy group, has also raised concerns. Its spokesperson, Yadanar Maung, said that after the earthquake on March 28, Myanmar’s military increased airstrikes. In this difficult situation, companies must be clear and follow human rights rules when leaving projects linked to the military. If they do not, they may be indirectly helping the military’s crimes.
She added, “Japanese companies and the government must clearly show how they avoid being part of the military’s crimes.”
Civil society groups have called for all companies and government agencies involved in the project to leave in a responsible and transparent way. They want the companies to respect human rights as they exit. Most importantly, they want to make sure that the military will not get any financial benefit from the project in the future.
The port project was seen as an important development for Myanmar. It aimed to boost trade and help the economy. But the military’s strong control over the project has made it very controversial.
Many fear that continuing the project supports the military regime. Since the military took power in a coup in 2021, it has faced many accusations of human rights abuses and violence against civilians.
The decision of these three major Japanese companies to withdraw is a significant move. It shows the power of public pressure and the importance of human rights in business decisions.
Still, the situation is not fully clear. More details are needed about how the companies will manage their exit. Also, the role of the Japanese government-linked organizations in the project needs to be more open.
The people in Myanmar and many international observers will be watching closely. They want to see real actions that do not help the military financially or politically.
This case raises important questions about how businesses and governments should act when involved in projects connected to controversial regimes. It also shows the growing demand for respect for human rights in global business.
As the situation develops, the world waits to see if other companies will follow these three and how Japan’s government-linked groups will respond to the growing calls for transparency and human rights respect.
In short, this withdrawal is a clear sign of rising concerns over Myanmar’s military control and human rights issues. It calls for more responsible and ethical business practices in the region.