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Myanmar poverty could double from coup chaos: UNDP report

Political turmoil and disruptions following the coup in Myanmar could undo years of progress and double the number of its people living in poverty to nearly half the population, a United Nations report said Friday.
The report by the UN Development Program, or UNDP, said 12 million people could fall into dire economic straits as businesses remain shuttered in a standoff between the junta and a mass civil disobedience movement.
“The hardest hit will be poor urban populations and the worst affected will be female heads of household,” Kanni Wignaraja, the UNDP’s assistant secretary-general for the region, told The Associated Press via a Zoom recording.
The Feb. 1 coup wrested power from the elected government of Aung San Suu Kyi, who has been detained along with more than 3,400 other people. Since then, the military has severely restricted internet access and gradually stepped up violent repression of protests.
Many factories, offices, banks and other facilities have closed and trade has been disrupted by work stoppages and other disruptions at ports, economists and others familiar with the situation inside Myanmar say. That has worsened already bleak conditions due to the pandemic.
The UNDP said conditions could deteriorate by early 2022 to a level of poverty last seen in 2005.
The economy grew rapidly after a previous military regime initiated a partial transition to a civilian government, while keeping control of key ministries and industries and seats in parliament.
Foreign investment in garment manufacturing, tourism and other industries helped create millions of jobs, providing a lifeline of support for many families living in rural areas.
But that progress has ground to a halt as the coup added to troubles from the pandemic.
“With the effects of the political crisis, we could see these gains removed in just a few months,” Wignaraja said.
The research agency Fitch Solutions has forecast that the economy will contract 20 percent in the current fiscal year, which ends in September. In a report released last week, economist Jason Yek noted that food insecurity is rising due to hoarding and inflation, while people struggle to access cash to pay for necessities due to the closure and cash limits put on ATMs.
A weakening of the Myanmar kyat to about 1,600 kyat per dollar from about 1,350 kyat before the coup also hinders the country’s ability to import much needed medicines and other supplies.
“We really cannot rule out any worst-case scenario,” Yek said in an online briefing.
So far, foreign governments and businesses have sought to levy pressure on Gen. Min Aung Hlaing and others in the junta through targeted sanctions meant to cut off financial support to the army, or Tatmadaw.
The UNDP report’s findings suggest that ordinary people already are suffering regardless of sanctions.
The magazine Nikkei Asia Review said Thursday that the group Independent Economists for Myanmar issued a report urging the targeting of sources of foreign exchange, such as Myanmar’s exports of natural gas, its biggest revenue earner, and of gems and jade.
Sanctions could freeze deposits linked to the state-owned Myanmar Foreign Trade Bank and Myanmar Investment and Commercial Bank, it said.
It said targeting the junta’s sources of hard currency with international sanctions could reduce its revenues by roughly $2 billion annually.
It said the military was prioritizing spending on weapons and security operations over providing desperately needed public services.
The US recently ordered sanctions against the company that controls most of Myanmar’s gems, pearls and jade sales, though a huge share of that trade is done illicitly.
So far, foreign energy companies involved in Myanmar’s natural gas industry have resisted calls for them to stop paying revenues to the government, saying such moves might endanger their employees and hurt access to already scarce electricity.
source: The Associated Press
Image source: Reuters
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BENEFIT AGM approves 10%...
- March 27, 2025
BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).
Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.
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