The Singapore Exchange yesterday issued a list of queries to developer Emerging Towns & Cities (ETC) over its project in Myanmar after a rights group criticised the company for doing business with the military.

ETC is among companies being called out by activists over ties to the Myamar military, which seized power from the elected government in a Feb 1 coup, sparking widespread protests in the country and international condemnation.

Singapore is the biggest source of foreign investment into Myanmar, according to the governments of both countries.

Singapore-headquartered payments firm Coda told Reuters yesterday it had deactivated military-linked telecom operator Mytel from its portfolio of payment channels. This means that Mytel customers cannot make purchases using Coda's services.

ETC is developing a commercial and residential project in Myanmar called Golden City, which is being built on land leased from the Myanmar army. The development has a total tenure of 70 years, including extensions, after which the entire project transfers to the lessor - the army's office of the quartermaster general, according to ETC's annual report.

ETC, through a subsidiary, paid US$24.9 million (S$33 million) for a 49 per cent stake in Golden City. Trading in ETC shares, listed on SGX's Catalist platform for smaller companies, were halted yesterday. The stock closed on Thursday at S$0.034. The company did not respond to a request for comment.

In its report, rights group Justice for Myanmar said Golden City "channels millions of dollars" to the army.

SGX's queries include requiring ETC to elaborate on its fundraising efforts, status updates and details of the Golden City project by Monday.

REUTERS