The value of weapons and related materials exported from Thailand to Myanmar doubled in the 2023-24 fiscal year to $120 million, according to a new report by a United Nations expert.
The report by Tom Andrews, the UN special rapporteur on human rights in Myanmar, said that while international efforts to isolate Myanmar’s ruling junta have succeeded on some levels, the military regime is still able to access money and weapons for its war against anti-coup forces
While there has been a marked decline in shipments from Singapore-based companies thanks to efforts by the city-state’s government, businesses in Thailand have helped to fill the gap, said the report, titled “Death Trade: How Banks and Governments Enable the Military Junta in Myanmar”.
Mr Andrews identified 16 banks in seven countries that have processed transactions linked to military procurement by Myanmar in the past two years, and an additional 25 that have provided correspondent banking services to Myanmar state-owned banks that are controlled by the junta.
“By relying on financial institutions that are willing to do business with Myanmar state-owned banks under its control, the junta has ready access to the financial services it needs to carry out systematic human rights violations, including aerial attacks on civilians,” he said.
Myanmar has been plunged into turmoil since the military seized power from an elected government in a 2021 coup, which sparked financial sanctions imposed on the military, banks and other associated businesses by Western countries.
More than three years on, a protest movement against the coup has evolved into a full-blown civil war, with the military accused of launching air strikes on insurgents and civilians alike as it has lost control of large swathes of territory.
The report found that the value of weapons, dual-use technologies, manufacturing equipment and other materials imported by the junta amounted to $253 million in the fiscal year to March 2024.
That was one-third less than in the previous year, the report said, thanks to efforts by Singapore to prevent companies based in the city-state from aiding the military regime.
Mr Andrews told Reuters that the progress showed that sanctions and other international efforts can have an impact on the junta’s ability to resupply, and therefore reduce the military’s ability to launch attacks such as air strikes that have killed civilians in their villages.
“The very means by which they are attacking these villages are dependent upon their access to weapons and materials supplied from overseas,” he said.
Myanmar’s military denies accusations that it has committed atrocities against civilians and says it is fighting “terrorists”. Officials have played down the impact of sanctions and said they only delay the military’s plan to return the country to democracy.
Mr Andrews looked at purchases by entities controlled by the Myanmar defence ministry, identifying $630 million in military procurement between 2022 and 2024.
The value of exports from Singapore dropped from more than $110 million in the 2022 fiscal year to just over $10 million, the report said.
However, Thailand partially filled the gap. Companies registered in Thailand transferred weapons and related materials worth $120 million in the 2023 fiscal year, compared with $60 million the year before, the report said.
“Thai banks have played a crucial role in this shift. Siam Commercial Bank, for example, facilitated just over $5 million in transactions related to Myanmar military in the year ending March 2023, but that number skyrocketed to over $100 million in the following year,” it said.
“In a striking example, in 2023, Thailand-registered companies became the SAC’s source for spare parts for its Mi-17 and Mi-35 helicopters that Singapore-registered companies provided previously,” the report said, referring to the junta’s formal name, the State Administration Council.
“The SAC uses these helicopters to transport soldiers and conduct airstrikes on civilian targets, such as the April 2023 attack on Pazigyi village in Sagaing Region that killed approximately 170 people, including 40 children.”
The Thai Ministry of Foreign Affairs said in a statement on Thursday that the country’s banking and financial institutions follow protocols like other major financial hubs, adding that the government would look into the UN report.
It did not respond to the report’s assertion that Thailand-registered entities had transferred weapons and related materials to the Myanmar junta.
“This is a matter of policy which has to be carefully considered, particularly the impact of sanctions on the wider population,” ministry spokesman Nikorndej Balankura said in a statement, referring to the country’s overall approach towards Myanmar, including imposing sanctions.
“In the past, Thailand has always taken the position not to support any action that impacts the wider population,” he said.
Singapore’s foreign ministry did not immediately respond to a request seeking comment. A Myanmar junta spokesman did not respond to calls seeking comment.
Thai Prime Minister Srettha Thavisin told Reuters in an interview in April that the country would not take sides and would address all concerns in the conflict.
The military said members of the armed resistance were killed in the Pazigyi village strike.