Person familiar with a China-backed telecoms project in Myanmar says it has been stalled after latest developments.
China’s embassy in Myanmar issued a notice urging Chinese nationals and companies to monitor developments and be aware of risks, obey local laws, stay home and avoid taking part in any political activities or large gatherings. China is Myanmar’s largest trading partner, accounting for a third of the Southeast Asian nation’s international trade, and its second-largest investor after Singapore. Exports to China had already been hit by Covid-19 and the coup may have a further impact on trade and investments, according to members of the business community.01:20 Myanmar’s army declares state of emergency after leader Aung San Suu Kyi detained during raid A person familiar with a China-backed telecoms project in Myanmar said it had been stalled by the latest developments. “Of course country risk is always factored into investments such as these. After Myanmar held an election in November last year, the general outlook was that the country would be relatively stable in the next three years,” said the person, who requested anonymity. “But after hearing about the coup… everyone involved in the project immediately raised red flags.” The Myanmar Banks Association on Monday said that due to systems and internet outages, all of its members would suspend operations, according to a notice posted by local media. That would further hinder financing of the telecoms project, according to the person.
