Page 26 - Forbes - Asia (July - August 2018)

FORBES ASIA
TUN’S TRIALS

ican brand to the ers between 20% and 30%. “We have to
country in 1990. build up the image of our country,” he says,
When U.S. sanc- noting that the hospitality sector will im-
tions forced Pepsi prove if the “Rakhine” crisis is resolved.
to leave seven (he government has banned the word
years later, it gave “Rohingya.”)
him the franchise His enterprises break even on bal-
and $15 million— ance, he surmises. Languishing in the red:
enough to start his hotel and publishing businesses. Just
his own sot-drink two businesses turn a proit: Tun Founda-
brand. “When the tion Finance, a microinance unit that has
country opened to granted loans to 30,000 customers, and
a market econo- Tun Commercial Bank, which boasts 25
my, I could use all branches, 850 employees, 40,000 custom-
my assets,” he says, ers, deposits of around $1 billion and plans
his voice compet- to expand. he rest of his businesses, in-
ing with car horns cluding real estate, rubber and drinks, are
outside. just treading water. Does he fear a return
hat was in of international sanctions? “We have to
2011. Tun es- worry,” says Tun. “Our business, our people
timates, rath- will sufer. Let the government sort it out.”
er reluctantly, Many Myanmar tycoons built empires
that during the and became rich through their connec-
glory years, 2012 tions to the generals who ran the country
through 2014, for decades. But Tun says he is not in that
his annual proits category. “I am not a crony; I am straight,”
hovered around he says, adding that he has never taken a
$4 million. He bribe. He acknowledges paying them, but
Tun has filled a postcolonial void in traditional sectors such as banking.
claims that the says none have been for a “big amount.”
oor, against the wall, is an artist’s render- value of his extensive property portfolio His name has never been on a sanctions
ing of Domel by the Bay, part of his planned may have put him in the billionaire ranks, list, and he says he has no connection to
luxury island development. He takes a seat though no one in Myanmar has ever made the current leaders, State Counsellor Aung
in a cluster of Chinese armchairs laced with Forbes’ annual list. San Suu Kyi or President Win Myint.
mother of pearl. If business had continued to boom, bil- On this day in late May, the tycoon is
At 82, Tun is one of the most venera- lionaire status might have been in sight. just back from a trip to Chennai, where he
ble of the country’s tycoons. He wears mul- But it didn’t. he international outcry over interviewed yet another prospective edi-
tiple hats as chairman of Myanma Gold- the alleged government-led ethnic cleans- tor for his newspaper. It operates three bu-
en Star Group, his sprawling family empire. ing of the country’s Muslim Rohingya pop- reaus—in Yangon, Mandalay and Nay Pyi
Some 3,000 staf work in 17 businesses that ulation in northern Myanmar has led to Taw—and publishes print editions in Bur-
include commodity trading, hotel manage- widespread cancellations by Western tour- mese and English as well as online. “In
ment, ish farming and rubber manufactur- ists. he overall number of tourists fell 2014 I did a stupid thing—I bought the
ing. He’s part of Myanmar’s irst generation 3% in the irst three months of the year, Myanmar Times,” he recalls, breaking into
of entrepreneurs and license-holders who, to 920,000, though tourism from Japan, a peal of laughter. “I had a gut feeling to
ater colonial rule ended, illed a vacuum China, hailand and South Korea rose. buy it, but it doesn’t make money.”
in traditional sectors such as banking and Foreign direct investment also remains Running a business in Myanmar is very
property development and also captured well of its 2015 highs. And property val- hard—the World Bank ranks the coun-
the local franchises for multinational brands ues, says Tun, are down 10% to 30%, com- try at No. 171 in its ease of doing business
looking to expand into every last market. pared with 2014, depending on the area. (New Zealand is irst and Singapore is sec-
Tun’s privately held conglomerate also hat, he says, is slowing down his pro- ond)—and Tun admits that he struggles to
holds stakes in two joint ventures to bot- posed Yangon oice tower. manage his vast range of businesses. he
tle and distribute beverages, most notably Last fall Tun felt obliged to open a newspaper demands too much of his time, MINZAYAR OO/PANOS PICTURES FOR FORBES
Pepsi sot drinks and Carlsberg beer. Indeed, three-star hotel in Bagan, Myanmar’s most perhaps partly because it publishes opinion
among the old guard in the Burmese busi- popular tourist area, because its construc- pieces with competing views of the Rakh-
ness community, he’s still known as Pepsi tion was inished. “We are losing money ine crisis. He also can’t ind enough good
hein Tun for his role in bringing the Amer- every month,” he sighed. Occupancy hov- managers for his companies. “It’s very dii-

24 | FORBES ASIA JULY / AUGUST 2018