Sembcorp to stay invested in Myanmar despite rising political tensions
SEMBCORP Industries will continue to be invested in Myanmar as it regards its power business there as a "very important infrastructure asset" even as fresh protests rock the country following the recent military coup.
"We are obviously monitoring the situation very closely. Our first priority is the safety of our people. So far, they are safe. The other thing that's important is to make sure that our business (there) continues to hum," said Sembcorp group president and chief executive Wong Kim Yin.
"We are invested in this country. We are operating this very important infrastructure asset," he said, in response to questions on whether the group is re-evaluating its investments in Myanmar amid the escalating tensions.
Sembcorp has a workforce of 90 in Myanmar, with 70 in Myingyan, a district in Mandalay, and the remaining in Yangon, Mr Wong said. Through its subsidiary Sembcorp Myingyan Power Company, the group operates a 225-megawatt gas-fired power plant in Mandalay which commenced operations three years ago.
"This plant is one of the lowest cost power that is available to the people of Myanmar. So, for us to continue operating this plant is important and so far, we have been able to keep it operating," said Mr Wong at a media and analyst briefing on its latest results on Tuesday.
Last week, Sembcorp disclosed that the net book value of the power facility was US$57 million as at end-2020, and US$230 million of the project's loan remains outstanding. The outstanding loan is backed by a corporate guarantee issued by Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp.
Sembcorp also has an industrial park project in Myanmar, which was announced in August last year and has yet to commence. On when the group expects to begin work on the project, Mr Wong replied that it was too early to say and it would have to take the cue from its customers at the industrial park.
He added: "Let's wait until the situation normalises. The project is there. We have got people on the ground...We hope that the situation will stabilise soon so that we can make those judgements."
