Starved of hard currency, the Myanmar regime is offering electric vehicle (EV) import licenses as an incentive to Myanmar expats who remit US dollars to their home country.
In a notice dated Oct. 13, the junta’s Commerce Ministry said Myanmar expats, including sailors who earn a regular income in foreign countries, who remit US$200,000 or more in a year will be allowed to import an EV worth $10,000. People who remit between $50,000 and $200,000 in a year will be allowed to import an EV worth $2,500.
Observers say there are few attractive options at the cited prices. They also questioned the practicality of promoting EVs in a country plagued by serious power outages.
Over the past few months, the regime has adopted a number of measures to replenish its coffers, including a 10 percent tax on foreign currency earned by Myanmar migrant workers in foreign countries, and a requirement that they remit at least 25 percent of their income through the country’s banking system.
The regime has also imposed restrictions on possession of US dollars inside the country, saying citizens can hold a maximum of $10,000—acquired by legal means—for six months, warning that anyone holding any amount of US dollars for a longer period would be subject to penalties.
The regime is starved of hard currency as foreign investors have fled Myanmar in response to the 2021 coup and Western sanctions. Myanmar imports many necessary commodities from cooking oil and fuel to pharmaceuticals and consumer goods.
In June, the US sanctioned two Myanmar state-owned banks—Myanma Foreign Trade Bank (MFTB) and Myanma Investment and Commercial Bank (MICB)—which primarily function as foreign-currency exchanges and enable the conversion of kyats to US dollars and euros, and the reverse.
To make matters worse, Singapore’s United Overseas Bank (UOB)—known as the offshore bank of choice for Myanmar’s generals—has cut ties with Myanmar banks.
The junta’s removal of two generals, Moe Myint Tun and Soe Htut, from its governing body, the State Administration Council, and their subsequent imprisonment is testimony to the fact that the top brass have been lining their own pockets despite the financial crisis. Moe Myint Tun alone reportedly took millions of US dollars in bribes.
Instead of taking prompt and effective steps to improve the economy, Min Aung Hlaing has simply urged people to reduce oil and fuel consumption to reduce dollar spending.
While more and more Myanmar people spiral downward into poverty after the coup, Min Aung Hlaing and his family exploit the country for financial gain.
