Myanmar regime leader Min Aung Hlaing used a cabinet meeting on Wednesday to condemn ongoing international sanctions, accusing foreign nations of placing undue pressure on what he characterized as his “democratically-elected government.”
The remarks follow Min Aung Hlaing’s inauguration as president on April 10 by a pro-military parliament.
His ascent to the presidency came after the military-proxy Union Solidarity and Development Party (USDP) claimed a landslide victory in the 2025–26 elections—a poll widely dismissed by the international community as a “sham,” given that no opposition parties were permitted on the ballot.
Despite the uncontested election, Min Aung Hlaing assured his cabinet that his USDP-led administration intends to implement a “reform process under democratic principles.”
The sanctions debate
Naypyidaw remains heavily isolated by Western powers. Since the 2021 military coup, the United States, the United Kingdom, the European Union, Canada, Switzerland, Australia, and New Zealand have imposed sweeping sanctions against regime officials and military conglomerates, including Myanmar Economic Holdings Limited (MEHL) and the Myanma Economic Corporation (MEC).
Recently, the E.U. extended its sanctions—which include asset freezes, travel bans, and an arms embargo targeting 105 individuals and 22 entities—until at least May 2027.
The efficacy of these sanctions remains a subject of debate among experts.
Sean Turnell, an Australian economist and former policy advisor to ousted leader Aung San Suu Kyi, told DVB that sanctions remain a crucial tool to “undermine” the military’s warmaking capacity by cutting off essential flows of foreign currency.
Jared Bissinger, a development economist specializing in Myanmar, argued that while sanctions temporarily disrupt revenue streams, they have not ultimately stopped regime forces from carrying out attacks against communities nationwide.
Blaming the economy
During the May 7 meeting, Min Aung Hlaing attempted to shift the blame for the country’s dire financial state onto Aung San Suu Kyi’s ousted National League for Democracy (NLD).
He accused the former civilian government of “mismanagement” that resulted in the waste of $13.34 million USD and 226.10 billion MMK in taxpayers’ money between 2016 and 2021.
However, independent economic data paints a starkly different picture of his regime’s financial stewardship.
According to the Institute for Strategy and Policy (ISP-Myanmar), foreign direct investment has plummeted since the military seized power.
While more than $28.7 billion USD entered Myanmar during the NLD’s five-year administration (2016–2020), only about $7.4 billion USD has entered in the five years since the coup (2021–2025)—a staggering 74 percent decline.
Furthermore, ISP-Myanmar reports that at least 25 major foreign companies, including Total, Chevron, and Telenor, have either completely exited Myanmar or ceased all operations since 2021.
Even regime-controlled data reflects the continuing downward spiral. According to the Directorate of Investment and Company Administration (DICA), foreign investment for the 2025–26 fiscal year totaled just $472.6 million USD, a drop of $217.6 million USD from the previous year.
Thet Hin Aung, secretary-general of the trade union Myanmar Industries Crafts and Services (MICS), noted that the economic damage runs deep.
He told DVB that even if Min Aung Hlaing pushes forward with his stated political reforms under the new USDP administration, it will take significant time and effort to ever regain international investor confidence.
