New Zealand has officially suspended all diplomatic ties with Myanmar as it does not recognise the legitimacy of the new military-led government.
These ties include aid and funds that were intended for the country, said New Zealand Prime Minister Jacinda Ardern during a press conference on Tuesday, reported Myanmar Times.
Meanwhile, U Maung Maung Lay, the vice president of the Union of Myanmar Federation of Chambers of Commerce and Industry raised concerns that New Zealand could impose economy-related sanctions and potential blocks in the exchange of payments, which might result in investors pulling out of Myanmar.
"If we can't make payments, it automatically means we can't trade. The withdrawal of investments and cutting off of ties with local businesses will follow suit," he said.
According to information from the Directorate of Investment and Company Administration, New Zealand has thus far invested USD 6.95 million in Myanmar. The country is ranked 46th out of 51 countries with investments in Myanmar, reported Myanmar Times.
Lay also addressed concerns on how the political unrest could affect other foreign investments and the country's economic recovery.
"The global economy was badly hit by COVID-19. It may take seven years or more for the global economy to recover, It will take several more years for the recovery of Myanmar's economy," he said, adding that recent events have tarnished Myanmar's reputation.
On February 1, hours before the newly elected parliament was due to gather, Myanmar's military overthrew the government and declared a year-long state of emergency after accusing State Counselor Aung San Suu Kyi's party of election fraud. San Suu Kyi and President Win Myint along with other top officials have been put under house arrest.
According to an earlier report by The Myanmar Times, 90 townships in 30 cities, including 44 townships in Yangon, have been placed under an 8 pm to 4 am curfew since February 8.
However, the curfew has failed to deter the people from participating in protest marches across the country calling for the release of detainees.
Police and military personnel on Tuesday night raided the headquarters of the National League for Democracy (NLD) in Yangon, reported NHK World.
On Tuesday, police forces on Tuesday cracked down on protesters by arresting over 100 demonstrators and firing live rounds and riot control weapons that led to serious injuries.
A woman, who was taking part in a protest in the capital Naypyitaw on Tuesday, remains in a coma after being shot in the head, reported NHK World.
( With inputs from ANI )
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