In a troubling development, Myanmar’s military regime has apprehended a Japanese business executive, alongside several local entrepreneurs, for allegedly inflating the prices of rice far above the officially mandated rates, according to state-run media reports released on Monday. The arrest of Hiroshi Kasamatsu, a director at Aeon Orange, which operates multiple supermarkets in Myanmar and is affiliated with Japan’s prominent Aeon retail group, has sparked widespread concern and attention.
Amidst the turmoil caused by the ongoing civil war and the lingering impacts of the COVID-19 pandemic, Myanmar heavily relies on stable rice prices to sustain its economy. Since the military coup d’état in 2021, spearheaded by Aung San Suu Kyi’s government overthrow, the nation has been engulfed in turmoil, transforming peaceful protests into violent confrontations.
Key Points:
- The reported crackdown involved 62 suspects, spanning across various sectors such as supermarkets, warehouses, mills, and other commercial establishments in major cities. The accused were charged with pricing violations ranging from 31% to 70% over the officially sanctioned rates designated by the Myanmar Rice Federation.
- The repercussions of these violations range from potential prison sentences of six months to three years for some offenders, including Kasamatsu, to fines and tax obligations for others.
- Recent World Bank findings indicated that nearly a third of Myanmar’s population resides in poverty, and the economy has shrunk by about 10% post-pandemic. The widespread displacement of over 3 million individuals due to escalated conflict has further exacerbated the country’s humanitarian crisis.
The devaluation of Myanmar’s currency, the kyat, has plunged, while businesses grapple with the gaping discrepancy between the official exchange rate established by the central bank and the prevalent free market rate.
Despite Japan’s historical amicable relations with Myanmar, contrasting approaches have emerged concerning Myanmar’s military government. While Japan maintains a relatively softer stance compared to Western nations that denounce Myanmar’s human rights violations and erosion of democratic tenets—imposing stringent sanctions in response.
In light of these developments, Japan’s Chief Cabinet Secretary, Yoshimasa Hayashi, confirmed the ongoing investigation of a Japanese national in Yangon, without disclosing the individual’s identity. Assurances were issued regarding the provision of necessary consular assistance and diplomatic efforts to secure the prompt release of the detained individual.
As this situation unfolds, it underscores the intersection of economic, political, and humanitarian challenges facing Myanmar today. The delicate balance between regulatory oversight and market forces necessitates a nuanced approach to navigating the country’s complex landscape, underscoring the importance of upholding ethical business practices and adherence to regulatory frameworks for sustainable economic growth.
