Singapore-based company collaborating with company owned by Burmese drug lord to build Myanmar’s new airport

Myanmar’s military government is constructing a new international airport in the administrative capital Naypyidaw that will be able to handle 10.5 million passengers a year. (Source: AFP)

The project is handled jointly by private company Asia World and Singapore-based CPG Consultants which drew up the blueprints:

What’s so unusual about this business collaboration between a Burmese and Singapore company?

The Chairman of Asia World is Lo Hsing Han, a former Burmese drug trafficker and present-day major Burmese business tycoon, with financial ties to Singapore.

In June 1992, he founded the Asia World Company, allegedly as a front for his drug operations. His son, Steven Law (aka Tun Myint Naing), married to Cecilia Ng of Singapore in 1996, runs the company which won many multimillion-dollar contracts in the construction and energy sectors. (source: Wikipedia)

Although Singapore is proud of its mandatory death penalty for small-time narcotics smugglers and heroin addicts, both father and son travel freely in and out of the friendly island-nation. “The family money is offshore,” said a high-level US narcotics official. “The old man is a convicted drug trafficker, so his kid is handling the financial activities.” (source: Burma-Singapore axis)

Singapore’s ventures with Asia World include both government and private investments. Kuok Singapore Ltd., a partner with Asia World in many ventures, was Burma’s largest single real estate investor as of late 1996, with over $650 million invested. 20 Other Singaporean companies are mentioned in Asia Worlds company reports.

In February 2008, the US Treasury placed economic sanctions on Steven Law, his father, Lo Hsing Han, and his wife, Cecilia Ng, as well as various companies in which they are involved, calling them “key financial operatives of the Burmese regime”. (source: DPA)

CPF Consultants is formerly known as the Public Works Department prior to its corporatization in 1999 and was owned by Temasek Holdings:

(Source: CPG Corp)

In 2003, CPG was sold by Temasek Holdings to Australia’s Downer EDI for $131 million dollars. It is not known if Temasek retained any shares in CPG after the transaction.

Singapore is the second largest foreign investor in Myanmar after Thailand. Besides CPG, a host of other Singapore companies including Government-linked companies have considerable business interests in Myanmar.

Collectively known as Singapore Inc, they gather around the $150 billion state-owned investment house Temasek Holdings, controlled by Singapore’s long-ruling Lee family.

With an estimated $3 billion invested in Burma (and more than $20 billion in Australia), Singapore Inc companies have been some of the biggest investors in and supporters of Burma’s military junta - this while its Government, on the rare times it is asked, gently suggests a softly-softly diplomatic approach toward the junta.

Singaporean government companies, such as the arms supplier Singapore Technologies has sent guns, rockets, armoured personnel carriers and grenade launchers to the blood-thirsty military junta of Myanmar. (read report here)

Many Western countries either ban or discourage investment in Myanmar as a way of pressuring its ruling junta to improve its poor human rights record and hand over power to a democratically elected government.

In contrast, Singapore has long advocated engagement with the military junta. Over the years, Singapore companies have invested heavily especially in the oil and energy sector of Myanmar.

A Singapore Association of Myanmar was set up in 1993 “to assist and provide channels of support among
Singapore companies and interests in Myanmar.”

Given the close economic ties between the two nations, it is little wonder that Singapore has an orchid named after Myanmar Prime Minister Thein Sein (read here).

Will Lo Hsing Han be rewarded one day with an orchid’s name or medal for his efforts in promoting Myanmar-Singapore relations and trade?

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