Telenor writes off $782m Myanmar business following coup

Norway’s Telenor has amortized its entire $ 782 million investment in Myanmar, which has suffered from Internet shutdowns, staff pressure, and poor business conditions since the military coup d’etat in February.

The Telecom Group said Tuesday that it had reported a loss in the first quarter, completely damaging Skr 6.5 billion’s investment in Southeast Asian countries.Depreciation works up to date Hurt business confidence In Myanmar’s economy, production plummeted during three months of public unrest.

“Due to deterioration [the] The outlook for the economic and business environment and the deterioration of security and human rights conditions have limited prospects for future improvements. ”

Due to the impairment, Telenor posted a net profit of SEK 689 million in the first quarter of 2020, compared with a net loss of SEK 3.9 billion in the quarter.

Telecom has experienced “irregular, uncertain and deeply concerned situations” in Myanmar with a focus on ensuring employee safety, transparency and access to customer services. Stated.

“This is not surprising,” said Romain Caillaud, principal of Tokyo-based advisory firm SIPA Partners and associate fellow of the ISEAS-Yus of Ishak Institute in Singapore. “Due to Myanmar’s domestic circumstances, it is very difficult, if not impossible, for Telenor to continue its business in Myanmar in accordance with global standards and commitments.”

Telenor, which operates one of Myanmar 4 telecommunications companiesHas suffered and disputed General Min Aung Hlaing’s crackdown on communications since he defeated Aung San Suu Kyi’s elected government after a military commander made an unfounded allegation of fraudulent elections.

Military junta has previously ordered Telenor and other carriers to block popular social media sites such as Facebook. Block internet services Every night, it eventually shuts down most of the rest of mobile and wireless internet communication.

Since the coup, the regime has killed 766 people and imprisoned more than 3,600, according to the Political Prisoners Support Association, a human rights group.

The turmoil put Telenor, a majority-owned Norwegian country, in an unpleasant position when anti-coup activists asked companies to refrain from payments and investments that could benefit the Myanmar administration. ..

Telenor Said In March, it paid an annual license fee to Myanmar’s telecommunications regulators, but registered what was called a “strong protest” against the mobile internet, the rule of law, and the administration’s crackdown on human rights.

Japanese brewers since the coup Giraffe And Korean shipbuilders POSCO Announced that it will end the joint venture with Myanmar’s military aid partners. total And ChevronInvestors in the country’s major gas fields have rejected activists’ calls to refrain from paying taxes to the military. They said they would violate the law and endanger local staff.

Follow John Reid on Twitter: @JohnReedwrites

Telenor writes off $782m Myanmar business following coup Source link Telenor writes off $782m Myanmar business following coup

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