It’s been a turbulent period for Myanmar in the last four weeks.
A military coup on 1 February toppled the elected government and took power against the people’s wishes.
Since then, there have been massive peaceful protests organised by anti-coup demonstrators that have been punctuated by bursts of violence from the authorities.
ASEAN is rightfully concerned about this violence and is urging for a reconciliation.
This incident reminds us of how we, as investors, should be mindful of political risk when investing.
Having exposure to a developing country such as Myanmar, with its bountiful natural resources, is certainly rewarding.
But you always have to be wary of the possibility of political trouble, especially if the country has a history of militarism.
Investors in companies such as Memories Group (SGX: 1H4), Yoma Strategic (SGX: Z59) and Emerging Towns and Cities Ltd (SGX: 1C0), all of which have exposure to Myanmar, were caught off-guard.