TOP 1%

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The Top 1% in Burma (Myanmar): Wealth, Influence, and Controversy

Myanmar’s top 1% comprises a small but highly influential group of individuals, often linked to significant wealth, political power, and, in many cases, controversial connections with the military junta. This elite class has benefitted disproportionately from the country’s resources and its complex political and economic landscape, often exacerbating inequality in a nation where the majority live in poverty.

Below is an in-depth look at the top 1% in Myanmar, their sources of wealth, ties to the junta, and the resulting socio-economic consequences.

Who Are the Top 1% in Myanmar?

The top 1% in Myanmar largely includes:

  1. Business Tycoons and Oligarchs:
    • Wealthy businesspeople who have accumulated their fortunes through industries such as natural resources (oil, gas, jade, rubies, and timber), real estate, and infrastructure development.
    • Many of these individuals benefit from exclusive government contracts or partnerships with the military regime.
  2. Military-Linked Elites:
    • Senior military officers and their families often dominate the top 1%.
    • Through control of state-owned enterprises and lucrative businesses, the military has entrenched itself as a significant economic force in Myanmar.
  3. Crony Capitalists:
    • Wealthy individuals or families who have built their fortunes by maintaining close relationships with the military junta.
    • These “cronies” are often granted monopolies, tax exemptions, and preferential treatment in return for their loyalty.
  4. Expatriate Investors and Foreign-Connected Elites:
    • Some members of the top 1% include Myanmar-born individuals or expatriates with strong international ties, who have taken advantage of liberalization policies during brief periods of democratic reform.

Sources of Wealth

The wealth of Myanmar’s elite often stems from control over the country’s vast natural resources and monopolistic control of key industries. Below are the major sources of wealth for the top 1%:

1. Natural Resource Exploitation

  • Myanmar is rich in natural resources, including jade, rubies, oil, gas, and timber. These resources are predominantly controlled by state-owned enterprises or companies tied to the military.
    • Jade Trade: Myanmar is home to the world’s largest jade reserves. The jade industry alone is worth an estimated $31 billion annually, with much of the wealth funneled to military-linked elites.
    • Rubies: The country produces 90% of the world’s rubies, particularly the prized “pigeon’s blood” rubies. A small number of elites control this trade.
    • Illegal Logging: Timber smuggling, particularly of teak, is another major source of wealth for elites connected to the junta.

2. Infrastructure and Real Estate

  • The top 1% often invest in luxury hotels, shopping malls, and high-end residential properties, particularly in major cities like Yangon and Mandalay.
  • Military-linked conglomerates often dominate construction contracts for infrastructure projects such as roads, bridges, and ports.

3. Import Monopolies

  • Many wealthy elites hold exclusive rights to import luxury goods, cars, and machinery into the country. These monopolies are granted by the military in exchange for financial or political support.

4. Banking and Finance

  • Myanmar’s banking sector is heavily controlled by a few influential families who often use these institutions for money laundering or financing military-affiliated businesses.

5. Foreign Investments

  • During Myanmar’s brief period of democratic reform (2011–2021), foreign investments in tourism, telecom, and other industries surged. Many of these deals were facilitated through partnerships with the top 1%.

Ties to the Military Junta

A significant portion of the top 1% owes their wealth to direct connections with the military (Tatmadaw). These ties provide:

  1. Access to State-Owned Resources:
    • State-owned enterprises like Myanmar Economic Corporation (MEC) and Myanmar Economic Holdings Limited (MEHL) control key sectors of the economy and partner with private firms controlled by elite families.
  2. Exclusive Contracts:
    • Cronies are often granted exclusive rights to operate in lucrative sectors, such as jade mining, real estate, and tourism.
  3. Protection from Sanctions:
    • The junta often shields its business allies from international sanctions or ensures that their wealth remains unaffected through illicit means.
  4. Political Patronage:
    • In return for their loyalty, these elites provide financial support to the junta, including funding military operations or supplying materials such as weapons or vehicles.

Key Figures Among the Top 1%

  1. Tay Za:
    • Known as Myanmar’s first billionaire, Tay Za is a business tycoon with close ties to the military. He controls the Htoo Group of Companies, which is involved in timber, construction, aviation, and tourism.
    • He is often referred to as a “crony capitalist” and has faced international sanctions.
  2. Aung Pyae Sone and Khin Thiri Thet Mon:
    • These are the son and daughter of military junta leader Min Aung Hlaing.
    • They have become highly influential in the business world, holding stakes in lucrative industries such as real estate, telecommunications, and construction.
  3. Zaw Zaw:
    • The owner of Max Myanmar Group, Zaw Zaw has interests in construction, hotels, and rubber plantations. His close ties to the military have been a major source of his wealth.
  4. Than Shwe’s Family:
    • The family of Senior General Than Shwe, the former junta leader, retains significant wealth and influence through control of key industries.

Impact of Wealth Disparity

The concentration of wealth in the hands of the top 1% has contributed to:

  1. Extreme Poverty:
    • While the top 1% amass vast wealth, over 40% of Myanmar’s population lives below the poverty line, particularly in rural areas and ethnic minority regions.
  2. Economic Inequality:
    • The wealth gap in Myanmar is among the largest in Southeast Asia, exacerbated by the junta’s monopolization of resources.
  3. Public Resentment:
    • The lavish lifestyles of the elite—luxury mansions, imported cars, and overseas investments—stand in stark contrast to the daily struggles of ordinary citizens.
    • This has fueled public anger and inspired protests, particularly after the 2021 military coup.

Role of Sanctions and Resistance

  • Sanctions: Western countries, including the United States and the European Union, have imposed sanctions on individuals and companies tied to the junta. While sanctions have targeted some elites, many have found ways to evade them through foreign proxies or illicit trade.
  • Resistance Movements:
    • Pro-democracy groups and civil society organizations have called for boycotts of businesses tied to the junta.
    • The National Unity Government (NUG), a parallel government formed in opposition to the junta, has sought to cut off the financial networks of the top 1%.

Conclusion

The top 1% in Myanmar represents a small but powerful group whose wealth and influence are deeply intertwined with the military junta. Their monopolization of the country’s resources has contributed to widespread poverty and inequality. However, growing public resistance, international sanctions, and the resilience of the Burmese people continue to challenge their dominance. The role of the diaspora and global advocacy will remain crucial in dismantling these systems of wealth and power.

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