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Myanmar open for business, not its people
January 16, 2019 - 16:22
by Gerhard Hoffstaedter, School of Social Science at the University of Queensland
Aung San Suu Kyi has just left Myanmar (Burma) for the first time in 24 years visiting Thailand and Europe and calling for more foreign investment in Myanmar. Meanwhile, ethnic tensions in Myanmar continue to erupt to the surface in a country that is slowly shaking off its pariah status in international affairs.
The recent by-elections in Myanmar, in which Suu Kyi’s National League for Democracy claimed 43 of the 45 seats available, have awakened hope and a flurry of activity around the world to weaken if not dissolve the Western sanctions regime against the ruling military junta.
For now, Suu Kyi will take her seat in a parliament that remains firmly in the hands of the military-backed ruling party.
The by-election follows extensive market reforms, the release from house arrest of Suu Kyi, the re-registration of her party that allowed her to contest the election, the freeing of political prisoners, and the relaxation of media censorship controls.
It seems like Myanmar is coming in from the cold. More than that, Myanmar is open for business and everyone is lining up to enter a large domestic market of 60 million untapped consumers and a largely un- or underdeveloped natural resources sector.
Thailand has a long trading history with Myanmar, dominated by logging and the import of natural gas among other natural resources. It is, however, the access to cheap labour in Myanmar that is seen as a great drawcard for manufacturing industries. Already Thailand is profiting from the cheap labour of Myanmarese refugees in Thailand who work illegally in the agriculture and manufacturing sectors, most often on an itinerant basis.
Long the preserve of Thai business interests and cross-border trade, Myanmar is of great geo-strategic importance to the region as a whole, and its other neighbours are entering the fray. Two global players are increasingly overtaking the Thai special relationship: China and India.
At the forefront of this regional engagement is the Dawei Deep Seaport currently under construction in Myanmar’s south. It will offer an alternative entrée into the Indian north-east and Chinese southern markets. It will also be the country’s first special economic zone as well as the entire region’s largest combined port and economic zone.
Thailand stands to gain most from this endeavour. Firstly, as its closest neighbour, long-time investor and main trading partner, Thailand will have direct access to cheap labour, resource abundance and offer itself as a transit point for goods to Cambodia and Vietnam. Already, a Thai construction company is the main contractor for the first phase of the project and further investments in the energy and manufacturing sectors are in the offing. The figures are staggering. The first phase alone of the $US58 billion project is worth $US8.6 billion.
Secondly, Thailand still houses millions of irregular migrants in its borders, most of whom have fled or left Myanmar for Thailand. This massive scheme offers a way to resettle and offer opportunities to, especially, the economic migrants.
Indeed, some have begun to trickle back to Myanmar, including political exiles. The government is wooing them back for their expertise and capacity to support the burgeoning economy.
However, the Myanmar government has its work cut out to capitalise on these opportunities. On the one hand, China, in particular, will require order and stability in Myanmar to provide safe transport links for their products as a viable alternative to the South China Sea. On the other, the West and some ASEAN members will require Myanmar’s rulers to, at least, offer some vestiges of democratic governance (as we are seeing at the moment) and a durable solution to the refugee crisis along the Myanmar/Thai border and wider ethnic tensions.
Some of these tensions have resulted in all-out wars with intermittent ceasefires. The situation in the uplands and ethnic held areas continues to be tense, and despite the recent political changes in the capital, the situation for ethnic minorities has not changed significantly.
Thousands are still fighting insurgencies and vast stretches of the country remain off limits to government troops. These conflicts continue to elicit a steady stream of refugees and asylum seekers fleeing the fighting to Thailand, Malaysia, Bangladesh, India and beyond. The diaspora networks of these refugee populations span the globe with small minorities settling in Europe, the US, Canada and Australia.
Since last June, for example, the army has been in a protracted war in Kachin state, again displacing thousands of civilians. While some ethnic conflicts have calmed and ceasefires have been in place, the Kachin conflict is again causing destruction in the poorest, remotest and most disadvantaged areas of Myanmar.
Asked about the tens of thousands of refugees living in Malaysia recently, opposition leader Aung San Suu Kyi said that it was too early to return to Myanmar as, “They have got to have something to return to.”
Indeed, but the situation for them in refugee camps in the region or living as illegal immigrants in places like Malaysia, which does not recognise refugees, is no solution either. Late last year, Malaysia introduced a new registration program for illegal migrants, called the 6P program.
The program was designed to find out how many undocumented workers are currently in Malaysia and whether they can be retrenched into specific sectors that are in need of labour, or repatriated.
The program has been aided by the mass mobilisation of the army, police force, immigration department, and RELA, an auxiliary police force that is undertrained and poorly resourced but ideologically driven.
In addition, the Malaysian home minister proposed an immigration detainee swap program last year, no doubt inspired by the so-called Malaysia-swap agreement between Australia and Malaysia. The deal would see Myanmar nationals detained in Malaysia ‘swapped’ for Malaysian nationals detained in Myanmar.
The Malaysian government’s attempt to systematically register illegal immigrants living and working in Malaysia is aimed at enabling better law enforcement. However, the final part of the program is ‘repatriation’, i.e. deportation of those not needed in the Malaysian economy and those deemed unsuitable, e.g. those with criminal convictions. Caught in the midst of all this are the thousands of asylum seekers, political exiles and refugees who have fled Myanmar’s enduring conflicts.
It is they who fear ‘repatriation’ most, as they have no homeland to return to, much less interest in doing so.
Author’s note: The people I work with, mostly ethnic refugees from Myanmar, call the country Myanmar because calling it Burma invokes the notion that the country belongs to the Burmese Bamar, the dominant ethnic group. Most Western governments refer to the country as Burma.
Gerhard Hoffstaedter is a lecturer in anthropology in the School of Social Science at the University of Queensland. His first book Modern Muslim Identities: Negotiating Religion and Ethnicity in Malaysia is published by NIAS Press.
This article was first published by the ABC Drum.