Myanma Economic Holdings Limited

The Union of Myanmar Economic Holdings Limited (abbreviated UMEHL or UMEH) was established in February 1990 under the Special Companies Act as the economic arm of the Burmese military, during a period of privatisation and transition from a socialist command economy, with an initial capital of US$1.6 billion.[10][11] UMEHL was established to generate profits from light industry and the trade of commercial goods.[12]

In the 2000s, several state-owned enterprises, including sugar factories, were transferred to the control of MEHL and MEC.[13] By 2007, MEHL wholly owned seventy-seven firms, nine subsidiaries and seven affiliated companies. Its shares are available to military units, active duty and retired military and veterans' groups, returning a 30% profit since 1995.[14]

The MEHL conglomerate is jointly owned by two military departments; 40% of shares are owned by the Directorate of Defence Procurement while 60% of shares are owned by active and veteran defence personnel, including high-ranking military officials of the former ruling military junta, the State Peace and Development Council (SPDC) and veterans organisations. MEHL is exempt from commercial and profit taxes.[15]

In 2010, MEHL opened Ruby Mart, a 50,000-square-foot (4,600 m²) 5-storey shopping complex in Yangon's Kyauktada Township, in a building that once housed the Ministry of Commerce's Myanmar Agricultural Produce Trading.[16] Between 2009 and 2012, MEHL benefited immensely during a mass privatization of state-owned enterprises and assets, acquiring the Bo Aung Kyaw port terminal and the Myanma Five Star Line in the process.[17]

In May 2012, when the United States suspended sanctions against Burma (Myanmar), sanctions against MEHL were kept in place, because of its affiliation to the Burmese Tatmadaw.[18]

In 2016, after the National League for Democracy assumed power, MEHL privatized its operations and dropped "Union" from its name. In doing so, MEHL diverted the company's profits away from the national budget and direct civilian oversight.

In May 2020, the Ever Flow River Group, which is tied to MEHL, was listed on the Yangon Stock Exchange.[17][19]

In June 2020, the Burmese government launched an investigation over conflicts of interest within the two public agencies, the Myanma Port Authority and customs authority, whose managing director and director-general respectively, also sit on MEHL's board of directors.[17] The practice of appointing MEHL directors to run these trade agencies has been in place since 1990.[17]

Following the February 2021 Myanmar coup d'état, in which the Tatmadaw seized power from the elected civilian government, the United States sanctioned MEHL, for its association with and support of the Tatmadaw,[3][20] impounding U.S.-held assets of the company, and forbidding U.S. nationals from doing business with them.[21][3][20] The United Kingdom promptly followed with sanctions of its own.[22] The American and British sanctions, however, were expected to have little impact, because Myanmar's principal trading partners, in Asia, declined to impose sanctions.[22]

MEHL is led by high-ranking Burmese military officials, including members of the ruling military junta, the State Administration Council. Min Aung Hlaing and Soe Win serve as the Chairman and Vice-Chairman of MEHL’s Patrons Group, which oversees the MEHL's board of directors, while Mya Tun Oo, Tin Aung San, and Maung Maung Kyaw are also members of the Patrons Group, and Aung Lin Dwe and Moe Myint Tun are MEHL directors.[23]

The conglomerate has also been involved in lucrative partnerships with drug lords.[24] MEHL has a monopoly on the country's gems sector and also has a significant portfolio in various industries, including banking, tourism, real estate, transportation, metals,[25] construction, mining, agriculture, tobacco and food.[3] With its affiliation to the Burmese military, which directly ruled the country for almost 50 years, MEHL has exclusive access to secure preferential contracts with foreign firms.[13] Most FDI in Burma is done through joint ventures with MEHL.[26] MEHL is one of 18 Burmese firms involved in the development of the 50,000 acres (20,000 ha) Thilawa Area near Yangon.[27]

Among its subsidiaries include:[15][16]

• Bandula Transportation
  • Parami Bus
• Myawaddy Trading
• Five Stars Ship Company
• Myawaddy Bank
• Virginia Tobacco Company Limited
• Myawaddy Tours & Travel
• Myawaddy Enterprises Group
• Pyininbin Industrial Park (in North Yangon's suburbs)
  • UMEH Textile
• Jade mines (in Kachin State)
• Ruby and sapphire mines (in Shan State)

• Tatmadaw
• Myanmar Economic Corporation
• Ministry of Defence