Global Courant
Singapore has not imposed a blanket trade ban on Myanmar because it does not want to exacerbate the suffering of the country’s people, Foreign Minister Vivian Balakrishnan said Monday.
But at the same time, the Republic remains committed to implementing its policy of preventing the sale of items that may have military relevance to Myanmar and could be used to hurt unarmed civilians.
Dr. Balakrishnan responded in a written reply to Mr Vikram Nair (Sembawang GRC) and Workers’ Party MP Dennis Tan (Hougang) who had raised questions about a report published on May 17 by UN Special Rapporteur on Myanmar, Tom Andrews.
Among other things, the report had indicated how Singapore-based entities were involved in the flow of supplies to Myanmar’s military. It had supposedly discovered that $254 million ($343 million) worth of “arms and related goods” had been shipped to the military through the Singapore-based entities.
Dr. Balakrishnan noted that an initial list of 47 entities had been identified, and more recently another 91 entities were also flagged.
“We take Mr Andrews’ report very seriously and have asked him to provide specific and verifiable evidence to support our efforts,” he said, adding that this was an interim update and investigations are ongoing.
However, the aim is not to hinder trade with Myanmar, the minister said. He said that by 2022, Singapore’s total bilateral trade with the country will reach $5.8 billion.
“Let me make it clear that it is not the policy intention of the Singapore government to block legitimate trade with Myanmar. This would further slow down the country’s development and exacerbate the suffering of Myanmar’s civilian population,” he said.
The allegations in the report refer to how goods with potential military applications were shipped over a two-year period from Singapore-based entities to Myanmar, where thousands have died after the military overthrew the democratically elected government in a February 2021 coup. had fallen.
The report also said that Singaporean banks have been “extensively used by arms dealers”, and Myanmar’s “substantial reserves” are suspected to be held in DBS Bank, UOB and OCBC Bank.
In his response on Monday, Dr Balakrishnan said nine of the flagged entities are no longer registered with the Accounting and Corporate Regulatory Authority, meaning they can no longer conduct business or operate as legal entities in Singapore.
“This includes entities allegedly involved in the transfer of components and spare parts for fighter aircraft, equipment for the Myanmar Navy, as well as radios, research and electronic warfare equipment,” he said.
Most of the 47 initially flagged entities no longer have business facilities with banks in Singapore. The banks will review the remaining accounts and take appropriate action, including increased oversight, to ensure that the transactions processed by these entities are not suspicious.
“Such measures would limit their ability to continue with unwanted business,” said Dr. Balakrishnan.
He added that as Myanmar is on the money laundering blacklist of the Financial Action Task Force, financial institutions in Singapore have also applied heightened due diligence for Myanmar-affiliated clients and transactions that carry higher risks.
