Abe on 1st trip to Myanmar by Japan PM in 36 years
  • This Section
  • Latest
  • Web Wrap
Last Updated: Friday, May 24, 2013, 17:31
  
Tokyo: Prime Minister Shinzo Abe is travelling to Myanmar on the first visit to the country by a Japanese leader in 36 years, as Tokyo bids to reassert its position as a top economic partner after decades of frosty relations with the previous military regime.

Travelling with a delegation of business leaders, Abe was to arrive in Yangon on Friday evening for a three-day trip, and will meet President Thein Sein on Sunday in Naypyitaw, officials from his office said.

The last Japanese premier to visit Myanmar was Takeo Fukuda in 1977 during the Socialist regime of the late dictator General Ne Win.

"Japan will cooperate in Myanmar's reforms with both public- and private-sector assistance," Abe told reporters before departure, according to Kyodo News agency.

Abe will meet Myanmar's democracy icon and lawmaker Aung San Suu Kyi whom he met during her visit to Japan in April.

Japanese companies are eager to invest in Myanmar after it started to open up when Thein Sein took office in 2011. With the US and European Union relaxing sanctions, Japan has moved quickly to capitalise on Myanmar's resources and its new economic environment without sanctions.

At least 35 Japanese investment projects are under way in Myanmar, the biggest being plans to develop the 2,400 hectare Thilawa Special Economic Zone near Yangon Zone led by trading companies Mitsubishi Corp, Marubeni Corp and Sumitomo Corp.

Abe is scheduled to sign agreements to provide Japanese grant money for human resources development and to extend the first Japanese government loan to the impoverished but resource-rich country since it cancelled USD 3.58 billion in debt in January.

Japan, Myanmar's largest aid donor, helped clear part of its unpaid debt in an effort to boost Myanmar's democratic reforms and open ways to resume fresh loans for infrastructure building and major development assistance that will support Japanese business interests in the Southeast Asian nation.

Japan had close ties with Myanmar before the junta took power in 1988, prompting Tokyo to suspend grants for major projects.

Although it scaled back most business activity and cut government aid when the US and other Western nations imposed sanctions in 2003 after the military regime put Suu Kyi under house arrest, Japan did not impose sanctions on Myanmar.

But with no major development grants or Japanese loans, major Japanese corporations maintained branch offices in Myanmar with minimal business operations during the previous regime, while neighbouring China gradually became Myanmar's major trade partner and investor after Thailand and Singapore.

Japan's investments and involvement lag far behind those of China and India, but that is fast changing after Tokyo forgave about half of Myanmar's more than USD 6 billion in debt.

PTI


First Published: Friday, May 24, 2013, 17:31


comments powered by Disqus