Concern over alcohol, tobacco investments
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As Myanmar continues to open its market to investors from around the globe, concerns are rising about the damage that will be caused by the flood of investment into the making and promotion of alcoholic drinks and tobacco products.
The government is short-changing its people by encouraging investment in the making, sale and promotion of products that can kill, analysts say. Sustainable and socially beneficial economic reforms require greater investment in infrastructure, education, technology and other productivity-enhancing sectors, they say.
Of particular alarm is the Investment Commission’s decision to open the tap for investment in beer and other alcoholic beverages, after decades of tight control over the manufacture, sale and promotion of products considered “unsuitable for the public” by the military government.
Commission staff say the decision was made last year and six more breweries have got permission to open since July. Diamond Mayson Industries received approval to open a brewery from the commission last week.
A local firm has also got permission to import and distribute nationally liquor, beer and cigarettes, said staff who asked not to be named.
Myanmar produces nearly 1.5 million hectolitres of beer a year – about 250 million 640 ml bottles – at three breweries. It also officially produces 200 million bottles of liquor annually, but the number is far higher as it does not include brands unregistered to avoid tax. There are about 100 liquor brands registered in Myanmar, but millions of unregistered and illegally imported liquors and beer are also sold.
One research study estimated, for example, that up to 10 million cans of Beer Chang are imported from Thailand via the black market every year.
According to a published list of the 100 top commercial taxpayers, Myanmar has nine cigarette and tobacco-product factories, with Rothmans of Pall-Mall Myanmar Pte Ltd. controlling 85 per cent of the official cigarette market. Black market brands, however, are so prevalent that they are sold at supermarkets. Two new factories are being built by Shwe Than Lwin and British American Tobacco Myanmar.
The market is already overflowing with alcohol, beer and cigarettes so allowing more breweries and cigarette factories will only allow these products to take a greater toll on public health and national interests, analysts say.
