Due to the military coup in Myanmar, Singaporean businessman Lim Kaling, a major shareholder in Rothmans Myanmar Holdings Singapore (RMHS) will divest the 49% stake the company holds in Myanmar’s Virginia Tobacco Company (VTC). RMHS operates the cigarette firm with Myanmar Economic Holdings (MEHL), a military-owned conglomerate which owns the controlling share.
Lim said on Feb 9 that we would divest himself of his holding in VTC because of “grave concern” over the political situation in the country. In a statement, Lim said he started the RMHS JV back in 1993, “to address an economic opportunity in Myanmar as the country was opening up to the rest of the world. Through this venture, we had hoped to help the country spur economic growth, create jobs, and raise standards of living.”
Apparently the coup was the breaking point for Lim. It was only in December that RMHS started legal action against MEHL over military partner's financial donations made in the name of joint venture. This dispute came about over scrutiny by Amnesty International and a UN fact-finding mission last September that examined military business ties in Myanmar to support its calls for an independent audit of VTC’s finances.
VTC, which produces the popular Red Ruby and Premium Gold cigarette brands, is the biggest player in Myanmar’s tobacco market. It employs about 1,000 people in the country.