Politics and Public Policy
Ethnic armed groups drove much of the political narrative in June. High-profile activities such as the 30th anniversary of the founding of the United Wa State Army (UWSA) in Panghsang, Shan State, and the KNU’s decision to skip ongoing discussions on the peace process showcased some of the limits on the Myanmar’s government’s sovereign control.
However, it was the continued, brutal Rakhine State crisis that drew more the most overt state response, with telcos claiming the Ministry of Post and Telecommunications (MPT) had ordered service to be temporarily halted in nine townships in Rakhine and Chin States.
The current Rakhine conflict between the Arakan Army and the Tatmadaw has seen thousands displaced in both western Rakhine and southern Chin States, yet another complication in the already crisis-wracked area. Myanmar’s economic and profile has taken a decided international hit, as some critics point to the decision to switch off mobile coverage as another negative action.
Business and Economy
The Ministry of Electricity and Energy (MOEE) announced the long-awaited raising of electricity prices on June 25. Due to come into effect on July 1, the government now frees up millions of dollars previous spent on subsidies to instead help rebuild and refurbish the much-battered national power infrastructure. The new costs lean more heavily on businesses than on the average citizen but will still represent a significant hike for domestic users’ monthly bills – in some cases bills will triple.
Politically, this move is a bold one for the NLD. Electricity hikes have previously been instigators of public discontent and outrage, with the USDP backing down from a similar hike in 2015. The NLD has timed the move following the daily blackouts of the past two months, though it is unknown how the public will react, both next month and in the lead up to the 2020 general election.
This coverage of developments in Myanmar’s political and economic transition was prepared by Vriens & Partners, a corporate advisory firm focusing on government relations and political risk in Southeast Asia. If you are interested in learning more about our services, please visit our website or email [email protected]
