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Nestle, the Swiss food giant, will suspend all manufacturing in Myanmar, a spokeswoman announced Monday, becoming the latest company to withdraw from the nation following a military takeover two years ago.
The Southeast Asian country has been in disarray since the military deposed Aung San Suu Kyi’s administration, causing massive unrest and causing the economy to tank.
Since then, a slew of foreign firms have fled the market, including oil behemoths TotalEnergies and Chevron, as well as Norwegian telecoms operator Telenor.
Nestle’s factory in Yangon’s commercial hub, as well as its head office, would “cease operations” due to the “current economic situation,” a spokesperson told AFP, without specifying a timeframe.
In Myanmar, Nestle distributes Nescafe instant coffee, Maggi noodles, and Milo chocolate malt beverage.
According to the representative, a Myanmar company will promote and sell Nestle products from Thailand, Malaysia, and the Philippines.
“We will do all in our power to help everyone affected by this decision,” they continued, without specifying how many workers Nestle employs in the nation.
With the military’s relaxation of its iron grip in 2011, investors poured into Myanmar, clearing the door for political reforms and economic liberalisation.
According to the International Labour Organization, the impact of the 2021 coup has damaged the economy, with more than a million people losing their employment.
The putsch rekindled warfare between ethnic rebel groups and dozens of “People’s Defense Units” formed to oppose the junta.
According to a local monitoring group, more than 3,000 people have been murdered in the military’s crackdown on the opposition since it seized power, and more than 19,000 have been jailed.
Last year, Nestle produced almost $95 billion in global sales.