"Response from Eight Major Shareholders Regarding Y Complex Project in Myanmar " 29 August 2022

Eight civil society organizations that are deeply concerned about business relationships that Japanese companies have with the Myanmar military sent a letter dated May 24, 2022 to 101 corporate investors holding shares in Tokyo Tatemono Co., Ltd. or Daiwa House Industry Co., Ltd. regarding a real estate development project in Yangon (commonly known as “Y Complex”) being implemented by the two companies. The letter pointed out that Tokyo Tatemono and Daiwa House Industry may be complicit in grave human rights abuses by the Myanmar military, and asked that the two companies take measures to ensure that Y Complex does not benefit the military. The letter further asked the corporate investors to consider divestment if the companies did not take sufficient measures.

In response, eight corporate investors have sent substantive replies to date, including one that stated that it engaged with the company concerned after receiving our letter. Two investors stated that they would consider engaging with the companies. However, the other five sent replies that did not correspond to our request, such as an explanation of their own human rights policies, and did not disclose the details of their efforts, including whether they engaged with the two companies.

The project company, Y Complex Company Ltd., is a Myanmar corporation. 80% of the shares are owned by Yangon Museum Development Pte. Ltd. (YMD), a Singaporean corporation, and 20% by Yangon Technical and Trading Company Ltd. (YTT), a Myanmar corporation. YMD was jointly set up by Tokyo Tatemono, Fujita Corporation (a subsidiary of Daiwa House Industry), and Japan Overseas Infrastructure Investment Corporation for Transport and Urban Development (JOIN).[...] The project is being implemented on military-owned land on a sublease, under a build-operate-transfer agreement, and land lease payments are made to the Office of the Quarter Master General. The Office of the Quarter Master General is responsible for procurement for the Myanmar military, and land rent payments to the Office of the Quarter Master General may fund the Myanmar military’s international crimes and grave human rights violations such as the killing of citizens, wrongful arrest, arbitrary detention, sexual violence, forced disappearance, and torture. The US, UK, and Canada have imposed sanctions on the Office of the Quarter Master General.

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