91 more Singapore-based companies allegedly sending supplies to Myanmar military

SINGAPORE: Another 91 Singapore-based entities were recently identified as being involved in the flow of supplies to Myanmar’s military, adding to an initial list of 47 recently named by the United Nations Special Rapporteur for Myanmar.

In response to questions sent by Members of Parliament (MPs) Vikram Nair (People’s Action Party-Admiralty) and Dennis Tan (Workers’ Party-Hougang), Foreign Affairs Minister Vivian Balakrishnan clarified that the government has not imposed a general trade embargo on Myanmar.

“We are therefore seeking more details such as export transaction documents to ascertain how these transactions are connected to the manufacture of weapons in Myanmar, so that our checks and investigations can be more thorough, and effective based on objective evidence,” he said.

Dr Balakrishnan added that it is “not the Singapore government’s policy intention to block legitimate trade with Myanmar”, noting that total bilateral trade between the two countries in 2022 amounted to S$5.8 billion (US$4.2 billion).

“Doing so would further set back the country’s development and exacerbate the suffering of the civilian people of Myanmar,” he said.

The allegations in the report by UN expert Tom Andrews refer to supposedly US$254 million worth of goods shipped from Singapore-based entities over a two-year period. It also said that Singapore banks have been used “extensively” by arms dealers.

In May, the Ministry of Foreign Affairs (MFA) responded to the allegations, saying Singapore has worked to prevent the flow of arms into Myanmar.

A ministry spokesman said Singapore has taken a “principled position” against the military’s use of lethal force against unarmed civilians.

MFA also said Singapore does not authorise the transfer of dual-use items which have been assessed to have potential military application to Myanmar, where there is a serious risk that they may be used to inflict violence against unarmed civilians.

Mr Nair asked if the government has investigated the allegations. He also asked for an update if it has and if any actions are being taken.

Mr Tan asked for the number of Singapore-based companies identified in the sale of materials for military-related uses in Myanmar, the actions taken against such companies and the number of companies against which actions have been taken.

He also asked how many cases involved Singapore-based banks in the financing of transactions, and what actions have been taken or will be taken against such banks.

GOVERNMENT TAKES ALLEGATIONS “VERY SERIOUSLY”
In his written response, Dr Balakrishnan said as the investigations are ongoing, the update would be an interim one and he sought understanding from the MPs.

He said the government was looking into specific details of the alleged “arms and related goods” that were shipped through Singapore-based entities to the Myanmar military, adding that there were no indications that specific armaments were being transferred to the Myanmar military in the UThe government takes the report “very seriously” and has requested that Mr Andrews provide specific and verifiable evidence to help efforts, said Dr Balakrishnan.

He said nine of the entities identified are no longer registered with the Accounting and Corporate Regulatory Authority, which means they can no longer carry on business or operate as legal entities in Singapore.

“This includes entities that were allegedly involved in the transfer of components and spare parts for fighter aircraft, equipment for the Myanmar Navy, as well as radios, research and equipment for electronic warfare,” said Dr Balakrishnan.

Most of the 47 initially identified entities also no longer have business facilities with Singapore banks, he added.

“The banks will review the remaining accounts and take appropriate measures, including enhanced scrutiny to ensure that the transactions processed by these entities are not suspicious,” he said. “Such measures would curtail their ability to continue with any undesirable business.”

Dr Balakrishnan also said financial institutions in Singapore have also been applying enhanced due diligence for Myanmar-linked customers and transactions that present higher risks, as Myanmar is on the blacklist of the Financial Action Task Force.

“I would like to re-state categorically that the Singapore government has not conducted any military sales to the Myanmar military in recent years,” he said, noting that this includes during the period mentioned in Mr Andrews’ report – between February 2021 and December 2022.

“Indeed, Mr Andrews himself reaffirmed in his report that ‘there are no indications that the government of Singapore has approved, or is involved, in the shipment of arms and associated materials to the Myanmar military’.”

Dr Balakrishnan added that the government would “continue to work closely and constructively with Mr Andrews to seek specific, verifiable, and where possible court admissible information to advance our investigations”.

“Let me reiterate that the Government remains committed to implementing our policy to prevent the transfer of arms and dual-use items which have been assessed to have potential military application to Myanmar, where there is serious risk that they may be used to inflict violence against unarmed civilians,” he said.

“We will not hesitate to take action against any individual or entity which contravenes this.”N report.

“Instead, under the category of ‘arms’, what was cited were only spare parts and equipment, without details of what these constituted,” he said.

Other major categories of items covered in the report included “dual-use supplies”, such as computers, electrical components and medical equipment. Also listed was “manufacturing equipment”, which included welding materials and overhead cranes, and “raw materials”, covering items such as steel beams and aluminium ingots, as well as pipes and valves.

“Members would appreciate from these descriptions that the items do not necessarily constitute ‘arms’ or weaponry in its ordinary meaning,” he said. “Many of them, such as computers and medical equipment, are also non-controlled items. It is difficult to isolate specific suspicious transactions from such broad categories.”