“Myanmar Resurfaces as top Global Opium and Narcotic Drug Producer in 2023: UNODC Links Opposition Hostility to Drug Trade Funding”

 Yangon, 13 December 2023,

The UNODC, in its report titled “Southeast Asia Opium Survey 2023: Cultivation, Production, and Implications,” analyzed data collected in Myanmar during the second opium growing season since the military takeover. The report revealed an 18% increase in opium cultivation from 40,100 to 47,100 hectares, with a potential yield of 1,080 metric tons, the highest since 2001. Following the recent decline of opium cultivation in Afghanistan, Myanmar has now become the world’s largest source of opium, a title it held for decades until the American invasion of Afghanistan.

Another alarming fact highlighted by the UNODC is that Myanmar is also the largest producer of crystal meth (methamphetamine) in the world.

The recent surge in fighting in Myanmar, led by the Northern Alliance Brotherhood, Myanmar’s version of Afghanistan’s Northern Alliance that seized power in 2001 with the help of the United States, is focused on the vice area of the drug-producing region bordering China. The Northern Alliance Brotherhood currently comprises three rebel groups: the Myanmar-born ethnic Chinese (Kokang)-based MNDAA, ethnic Palaung (Ta’ang)-based TNLA, and ethnic Arakan (Rakhine)-based AA. These groups are armed and funded by the de facto independent drug cartel-administered enclaves of Wa ethnic-based UWSA and Akha ethnic-based NDAA, narco-armies.

The Northern Alliance used to include five different Former Communist rebel armies: MNDAA, AA, TNLA, KIA, and SSA (north), which engaged with Myanmar Junta army in combat. Two other armies, UWSA and NDAA, maintained a de facto ceasefire with the Junta and supported the war effort materially for the Northern Alliance. They called themselves “Brotherhood Alliance” because they all were part of Communist Party of Burma CPB’s armed forces established by the Chinese Communist Party during the Cold War.

The Fabric of Myanmar’s Northern Alliance

Active Combat Members in 2023

The Myanmar National Democratic Alliance Army (MNDAA), led by Myanmar-born Chinese drug warlord Péng Jiāshēng (Pheung Kya-shin), is one of the most notorious narco-traffickers globally. The Kokang, ethnic Chinese living on the Myanmar side of the international border with China, are well known for their century-old tradition as professional opium farmers, The MNDAA is funded by the drug trade since the 1960s. It begun as part of Chinese-Communist Party backed Communist Party of Burma’s Armed Forces during height of Cold War. They broke way from CBP and signed a peace agreement with Myanmar military Junta in 1989 to focus on drug trade, eventually replacing another Myanmar-Chinese drug kingpin, Khun Sa, who surrendered to the Junta in 1996. Khun Sa is reputed to have Thai citizenship and close ties with Taiwan based Chinese Government called ROC, the Republic of China. So, it can be said as the PRC Chinese proxy drug lord replaced the ROC Chinese’s inside Myanmar opium turf.

The MNDAA, UWSA and NDAA with the help of their then-ally Myanmar Junta Army conquered and divided former drug kingpin Khun Sa’s turf in the lawless area “the Vice Crescent” where China, Laos, Thailand and Myanmar meets. The Southern part of the world’s largest drug producing region which is between and great Mekhong and Salween rivers is globally known as the Golden Triangle. The MNDAA drug army which represent the Kokang region and its allies other Chinese speaking, Chinese Yuan currency using de facto independent regional drug armies of Wa ethnic’s UWSA and Akha ethnic’s NDAA shared the history of serving under CPB, the Communist Party of Burma.

The rift between leading clans of MNDAA in 2009 led Peng’s function kicked out of the Kokang region by rival drug kingpins who allied with Myanmar Junta. The MNDAA under the ousted warlord Peng took refuge in neighboring de facto independent enclaves under the UWSA and NDAA where it was rearmed and staged the first unsuccessful offensive to recover the Kokang territory in 2015 when Myanmar was under Aung San Suu Kyi’s Democratically elected NLD Government. After the failed first attempt in 2015 the MNDAA returned to NDAA controlled area where Peng passed away in 2022 at the age of 91. His eldest son Peng Daxun succeeded the MNDAA throne as the Commander-in-Chief. The MNDAA is the second most senior member in the alliance after KIA with experiences in Myanmar civil war since 1968.

The Arakan Army (AA) is an armed force based on the Rakhine (Arakan) ethnic group. The Rakhine state, situated on the westernmost part of Myanmar on the coast of the Bay of Bengal and bordering Bangladesh, is one of the least developed regions in the country. The AA was founded by the Kachin ethnic Kachin Independent Army (KIA) in Northern Myanmar’s Kachin State in 2009. The AA strategically found alliances with groups at war with the Junta in the Northern and Eastern war theaters, where the drug trade funded war efforts during seven decades of civil war. They supported AA with, the place to stay, the battlefield experiences and ammunition. The former UN chief Kofi Anan’s commission report about Rakhine Conflict on August 2017 stated AA (on page#45) as being funded by the drug trade. The United Nations UNODC’s report stated that the international drug trade route of the world’s largest Crystal -Meth producing region of North and Eastern Myanmar passed through Arakan (Rakhine) State to Bangladesh before it continue to Middle East and European markets. The AA claimed to have over 20,000 armed soldiers and there may not be other source to fund such a size of armed men other than drug in this Asia’s poorest country which also is the top producer of narcotic drugs in the world. There is no doubt about Kofi Anan Commission report that AA is funding its military operation from the proceeds of drug trade. AA’s home base in North Eastern Myanmar host largest Drug refineries and its front line of western Rakhine State bordering Bangladesh which is the exit point to ship the drugs internationally. The logistical route to transport tons of ammunition and supplies from its home base to the front line may well serve as an opportunity to bring other lucrative cargo, the drug.

The Ta’ang National Liberation Army (TNLA) is a Palaung (Ta’ang) ethnic-based offshoot of the Former Communist PSLF/PSLA which was part of CPB’s armed forces It was resurrected by the other former CPB brother KIA in their area of control while on a ceasefire with the Junta in 2005.  TNLA claimed to have about 15,000 well armed soldiers in the battlefield that control large opium farming territory in North eastern Shan State. Although their claimed crackdown on the drug usage can not be independently verified, the Palaung ethnic’s famous product of tea leaf is not sufficient to maintain 15,000 men with Kalashnikovs and anti-aircraft missiles.

Non-Active Combat Member of the Alliance

The Kachin ethnic-based Kachin Independent Army (KIA) is the most senior member of the Northern Alliance, mainly a Christian tribe with a visible population in North and Northeastern Myanmar. The KIA was founded in the early 1960s and was a former ally of the Communist CPB in 1970s. It signed a peace agreement with the Junta in 1994 until fighting resumed in 2011.

The KIA is in control of rich precious metals and gem stone mining areas around Northern Myanmar’s Kachin State and Sagaing division. It claimed to have 30,000 well armed soldiers along with the ability to produce its own small arms in the area they controlled. Almost half of the Assault rifles in Myanmar opposition force’s hands are KIA made copies of Type-81 Chinese Assault rifle while the balance are either manufactured by the UWSA or smuggled through Thailand from Cambodia. The KIA’s home base is called Laiza City on the border with China which is their only trade partner. All the precious metals, gem stones and timber extracted from Kachin State are exported to China through porous borderland under its control and import everything including raw materials to produce arms and ammunition from China.

The KIA took advantage of cease fire agreement with Myanmar Junta to set up proxies like AA and TNLA on early 2000s and after 2021 coup, it sponsored new proxy PDF forces which is mentioned on the United State Department of State’s 2022 report as the major perpetrator of terrorism in Myanmar. The KIA controls large area where the opium farming and drug manufacturing are the primary sources of income for centuries.

The Shan State Army (SSA) (North) is one of two major Shan ethnic revolutionary forces in the northeastern part of Myanmar’s Shan State. The other is being SSA (South) or RCSS/SSA, which is a larger brethren Shan rebel force that does not share SSA-North’s communist ideology. The SSA-North shared its heritage with MNDAA, UWSA, NDAA, and TNLA as part of the Communist Party of Burma CPB before its split-up in the early 1990s. The SSA (South) or RCSS/SSA is the successor organization of Drug Kingpin Khun Sa after his surrender to Junta and carried Shan Nationalist agenda. SSA(South) controls remaining Southern part of Khun Sa’s drug turf in Shan State.

These two rebel groups used to take part with other three, in active combat after the cease fire between KIA and Myanmar Junta army broke up in 2010s. But they do not officially join the current offensive of “Operation 1027” which launched on 27 October 2023.

The Shadow Members of Northern Alliance

The United Wa State Army (UWSA) is another BCP communist splinter group based on Wa ethnic living in China and Thailand border regions. It is the world’s largest narco-army with 30,000 well-armed soldiers who have anti-aircraft missiles, Helicopters and tanks. It controls two de facto independent enclaves along the China and Thai border, where most small arms manufacturing and narcotic refineries are located. Some of its top commanders like Wei Hsueh-kang (Drug Kingpin Wei brothers) are wanted by , the United States’ DEA, Thai and Chinese authorities for drug trafficking and other crimes.

The Akha ethnic-based National Democratic Alliance Army (NDAA) is another former communist drug army, a smaller version of its big brother UWSA, maintaining de facto independence in Myanmar’s Northeast border area with China and Laos. Their head quarter Mong La city is the Myanmar version of Macao or Las Vegas where Casino and all sorts of sins happen.

UWSA and NDAA enjoy relative stability since their split from the Communist Party of Burma and got de facto peace agreement with Myanmar Army in 1989. The Wa joined hands with Myanmar Junta army after the cease fire to fight against Drug warlord Khun Sa’s mighty Shan rebel army MTA. When Khun Sa surrendered with 30,000 armed men to the Junta, the Wa seized Khun Sa’s drug turf situated on Thai border. UWSA relocated hundreds of thousands of Wa ethnic people and set up a de fecto independent Southern Wa prefecture under the auspice of Myanmar Junta where most of the narcotic drugs destined to Thailand are produced.

Together, UWSA and NDAA hosted MNDAA in their area of control after its lost the clan war in Kokang region on 2009. They funded, armed and recruited for MNDAA, taking advantage of the cease fire agreement with Myanmar Junta army until MNDAA launch attacks on Myanmar army from their enclaves in 2015 and 2023.

Claim of Supreme Command by the NLD Party’s National Unity Government (NUG)

The first attempt by the Northern Alliance to reclaim lost drug-turf was under Aung San Suu Kyi’s NLD party-led Government in 2015. The NLD Government claimed the alliance as narco-terrorist and endorsed Myanmar army’s crackdown, which saw the alliance’s defeat and retreat to NDAA territory. The NLD also endorsed Myanmar military’s actions in Rakhine State against Rohingyua Muslim minority and its fight against the first attempt of Arakan Army AA to set foothold in Rakhine State in 2015-2020. The AA kidnapped many of NLD party’s members of parliament in Rakhine State. After the February 2021 military coup, the NLD party went underground to KIA and other rebel-held territories, forming a parallel Government called “the National Unity Government NUG” and its army “Peoples Defense Forces PDF,” before adopting its current policy of the cliché “Enemy of my Enemy is Friend.”

The PDF Peoples Defense Forces are the loosely organized armed wing of Aung San Suu Kyi’s National League for Democracy (NLD), which was deposed by the military in February 2021 in a bloodless coup and formed a parallel Government called National Unity Government NUG. It has its headquarters in KIA-controlled areas, and its acting President is of Kachin ethnic background. The PDF is made up with mainly Bamar majority youngsters “many of whom are underaged child soldiers” and consists of newly formed hundreds, if not thousands, of armed militias and death-squads with various interests. The chain of command and loyalty of numerous PDF forces varies, but the NUG Government claims responsibility for all the conduct of the PDF, including the killing of civilians, journalists, doctors, teachers, Buddhist monks, and anyone accused of being Junta sympathizers by their Death-squads.

The NUG Government’s acting president office is located in Northern Myanmar’s Kachin State in the Head Quarter of KIA army Laiza city on the Chinese border, while most of its “Federal Government Level Ministries” are situated in Thailand’s Maesot city, which shares a border with Myanmar’s Karen State.

The initial statement released by the Northern Alliance on 27 October 2023, stated that they are fighting to eliminate military dictatorship, acting for the restoration of Democracy in Myanmar, and the formation of a Federal Union, which mirrored the objectives of NUG. Subsequently, after the one-month anniversary of the offensive on 27 November 2023, another statement claimed to have achieved the first phase of the offensive by liberating their home Koknag region, and the second phase of liberating the whole country from the Myanmar Junta has begun. The NUG Government’s top officials claimed on social media that they have negotiated with Northern Alliance for a year to synchronize “Operation 2017” and implied that the alliance is “acting under the command of NUG Government.” The bold statement of NUG to associate with its former enemy and who they regarded as narco-terrorist warlords while NLD party was in power on 2015-2020 period, came as a surprise for Myanmar watchers.

The silence of infamous “Buddhist Terror” against Rohingya Muslims that happened in 2017 under Suu Kyi’s NLD-NUG Government after 2021 is a proof that those civilian ultra-nationalists who sided with Myanmar Junta army on alleged genocide are transformed into PDF under the NLD-NUG and now fighting against their former ally Myanmar army. The Ultra-Nationalist figures like infamous monk U Wirathu, who represents Buddhist Terror, may be behind those attacks against once-mighty Myanmar Army. In other words, the renewed Civil War in Myanmar after 2021 coup is the power struggle between once-ally Myanmar Buddhist Ultra-Nationalist (PDF) and Myanmar Junta Army, both of whom are facing genocide and crime against humanity charges on the International Court of Justice ICJ, which they alleged to commit in 2017 under the NLD Government.

Interestingly, Myanmar currently has a total of three rival Presidents: Myint Swe, who is appointed by the Junta, with office in Central Myanmar and two others, Duwa Lashi La of NUG, who is a Kachin ethnic with office in North, and Saw Ner Dah Mya of Kawthoolei Government, with office in South who is a Karen ethnic and a citizen of Thailand.

The NUG claims to have 300 well-armed battalions around the country and funds its combat operations of reclaiming the lost throne with donations from the overseas Myanmar migrant communities. It claims to collect tens of millions of U.S dollars from Myanmar communities in Thailand, Singapore, and the USA in 2022 alone with the help of public influencers who are the same persons to rally behind Suu Kyi’s 2019 defense of Myanmar Army from genocide allegations before the International Court of Justice ICJ .

The combined forces of tens of thousands of armed men fighting against the approximately 400,000-strong Myanmar Junta army require tons of ammunition and supplies. The United Nations’ report about the rise in opium producing and drug trade in Myanmar after the 2021 coup seems to give a logical answer.

Other Conflict Areas in Myanmar with Significant Drug Trade

On top of AA controlled Bangladesh trade route in the West, Northern Alliance controlled Northern and East of the country, other regions like the Kayah State, which is at the southern neighborhood of Shan State, the Chin State, which is on the western border with India, and the Southern Karen state, also saw a recent surge in fightings since October 2023.

The Kayah State, on the Thailand border where the kidnapping of 204 University teachers and families from the state’s Loikaw University took place on November 2023, saw a surge in opium farming since the early 2000s. The barren mountainous region is inhabited by various ethnic tribes with traditional opium farming, which used to serve as the factory-farms for the drug refineries in the neighboring Shan State. The KNDF, which is the Kayah version of PDF under the NUG, claims to have about 8000 fighters and is described as the perpetrator of terrorism in the United States Department of State’s 2022 report. The godfather of all post-2021 armed resistance in Kayah state is the former Communist force called Karenni National People’s Liberation Front (KNPLF). The former brother-in-arms of MNDAA, KIA,UWSA, NDAA and PSLF/TNLA under the command of Chinese back CPB, the Communist Party of Burma.

The mountainous Chin State on the India border produces a large number of opium, and Indian media outlets reported enough information about the Chin State’s drug export to India. The CDF, Chin State’s PDF under the NUG, claims to have about 10,000 fighters and is described as the second top perpetrator of terrorism in Myanmar after the PDF on the United States Department of State’s 2022 report. The godfather of Chin State’s resistance forces on post 2021 is the CNF China National Force which is an offshoot of KIA like AA and TNLA.

Involvement by Corrupt Officers from Junta Regime

Since Myanmar is the largest producer of illicit drugs in the world, there is no room for doubt that the involvement of corrupt officers in successive regimes played important roles in the lucrative trade. According to the UN’s records, the contested Kokang region under Peng’s clan MNDAA rule from 1989-2006 saw large-scale production in heroin and other narcotic drugs, whose momentum was retained by the successive Kokang regional rulers aligned with Myanmar Junta officials. The corrupt security and administrative officials of the successive regimes, including Suu Kyi’s NLD Government, are involved in drug trade to export the narcotic drugs produced in the vice region of Northern and Eastern Myanmar to international markets. The militias in North and North-East regions who are aligned or changing alliance with Myanmar military are notorious for illicit businesses, including gambling dens, arm smuggling and drug trade. The recent sacking in November 2023 of Myanmar Junta’s Minister of Interior Brig-General Soe Htut is an example of the extent of corruption within the regime.

Citizenship and Ideological Disparities

The People’s Republic of China (PRC) Government recently issued arrest warrants for members of a Chinese Mafia criminal gang operating in Myanmar’s Kokang region. Of particular interest are the warrants issued in early December 2023 for ten individuals, which included a former member of the Myanmar legislative assembly under Suu Kyi’s NLD Government. The warrants, written in Chinese, revealed that four out of the ten persons were dual citizens with both Chinese and Myanmar citizenship, with the Chinese citizenship ID numbers of the accused explicitly mentioned.

Despite the fact that both Myanmar and China officially do not recognize dual citizenship, it is no secret that many individuals residing along the thousands of kilometers of the border area hold dual citizenship. Perhaps most notable are the leaders of the rebel armies along the Chinese border, who are Chinese citizens and have established their entire livelihoods, including houses, businesses, bank accounts, and family education, in China. These individuals are not officially recognized as Myanmar citizens, as they lack citizenship certificates issued by Myanmar. Similar to other regions like Nargorno Karabakh or South Ossetia in the Caucasus, these de facto independent enclaves issue their own ID certificates, which are acknowledged only by China. In October 2023, Chinese authorities issued arrest warrants for two top United Wa State Army (UWSA) officials who also appeared to be dual citizens. Presently, all leaders of the Northern Alliance Brotherhood are residing in China’s Yunnan Province, where peace negotiations between the Myanmar junta and the alliance are taking place.

The potential revelation of a large percentage of the border area population holding Chinese citizenship awaits if Chinese and Burmese immigration officials share their databases. In early December, the Myanmar Junta claimed to have extradited more than 10,000 Chinese citizens illegally living in Myanmar’s Kokang enclave to Chinese authorities. Local sources suggest that tens of thousands more Chinese individuals are seeking refuge in other Chinese-speaking enclaves under UWSA and NDAA control.

The immigration and citizenship issue is not isolated to the porous Chinese border alone. Notable examples include the self-proclaimed President of Karen Kawthoolei, Saw Nah Deh Mya, who is a dual Thai citizen; the late notorious drug lord, Sai Naw Kham, who was a dual Lao citizen, and NUG Government’s Federal Minister, Dr. Sar Sar, who is a dual Indian citizen. It is imperative to note that Myanmar and all its neighbors do not officially recognize dual citizenship.

The diverse ethno-religious backgrounds of the rebels have given rise to various political agendas. While the NLD-NUG advocates for a unified and democratic Federal Union with elected representatives, most of its ally rebel forces are former Communists who have ruled as unelected warlords for decades. Among the ex-Communists and their offshoots, the Kachin-KIA, Chin-CNF, Shan-SSA, Kayah-KNPLF, and Rakhine-AA aim for an independent country, while Chinese-speaking MNDAA, NDAA, UWSA, and Palaung-TNLA seek self-autonomy. For non-Communists, Karen-KNU and the Shan SSA (South) desire a fully separate and independent country.

Although rebel armies have temporarily formed alliances with the Bamar-dominated NLD-NUG in the fight against the common enemy, the Bamar majority Myanmar junta army, deep-seated animosities among them cannot be suppressed for long. For example, in Shan State alone, the Shan, a Thai tribe, consider themselves the traditional rulers of Shan States and have historically fought with Palaung, Wa, Kachin, and other minorities over the seven decades of Civil War. The most recent conflict was between the SSA and TNLA a few years ago. Shan States alone hosted more than 10 large rebel armies with more than thousands armed men before the 2021 coup and countless numbers of small rebel factions in the post-coup renewed Civil War.

All the various rebel armies, with different uniforms and their own interests in drug trafficking, have a history of fighting each other and do not conceal their intention to compete for control over lucrative business.

Recent Reports by Myanmar’s Neighbors about Drug Trade

On 12 December 2023, Thailand announced having seized 50 million methamphetamine tablets from neighboring Myanmar. On the same day, in an interview with Japanese Nikkei Asia News Agency, Thai Prime Minister Srettha Thavisin said his country should take the leading role in engaging with the Myanmar military regime to resolve its two-year civil war as concerns rise about the escalating conflict driving an influx of refugees and illicit drugs across their border. Thailand shares a 2000 km border with Myanmar and hosts 45,000 Myanmar refugees that include NUG government-in-exile.

According to the United Nations records, the recent seizure of illegal drugs in Thailand is the second-largest in the world records after Laos, which seized 55.6 million methamphetamine tablets and 1.5 tons of crystal meth in October 2021.

On the western border of Myanmar, the Bangladesh Border Guard (BGB) regional commander, Brigadier General Nazm-Us-Sakib, expressed his concerns in May 2023 over the increase in drug smuggling, especially methamphetamine tablets and crystal meth, from Myanmar.

India on the west and China on the east with almost 3 billion of consumer markets which is sharing thousands of kilometers of border with Myanmar also is flooded with cheap narcotic drug exports from Myanmar.

Myanmar Junta state media is also awash with reports about an increase in drug seizures around the country. On 1 December 2023, Myanmar police busted the drug haul of over 6 million methamphetamine tablets and chemicals along the East-West drug trade route from the production region of the Chinese border to the destination on the West in Chin state. Most of the smuggling gang members on that drug bust are from the Chin State.

Conclusion

The resurgence of Myanmar as the leading global opium producer, coinciding with heightened hostilities after the February 2021 coup, raises serious concerns about the involvement of the NUG-PDF in narco-terrorism. The ousted NLD regime’s attempt to restore election results inadvertently led to the reemergence of Drug Cartel Armies, operating with the support of the NLD-NUG parallel government. The PDF, offshoot of Ultra-Nationalist who are implicated in the 2017 genocide under NLD regime and labeled as a perpetrator of terrorism by the 2022 U.S. Department of State report, is now collaborating with notorious Drug Cartel Armies under the collective command of the NLD-NUG.

The scale of the offensive orchestrated by NUG, involving thousands of armed forces, demands significant financial resources. It is evident that both the Northern Alliance Drug-Cartel forces and NUG-PDF have funded their war chests through the proceeds of the drug trade. Notably, most areas in Myanmar, excluding those focused on recent conflicts involving drug and weapon production, remain under the control of the Myanmar Junta regime. The Junta’s territory, crucially, lies on the transit route from drug-producing regions to international markets in the West.

The NLD-NUG, ruling Myanmar from 2015-2020, formed an alliance with the Northern Alliance Drug-Cartels after being ousted by the Myanmar military. This alliance mirrors the ill-fated U.S. partnership with Afghanistan’s Northern Alliance Drug Warlords in 2001, resulting in the country’s destruction until the Taliban’s return to power in 2022. The Myanmar Junta’s weakening grip on drug-producing regions further aligns with historical events.

The opposition NLD-NUG, responsible for the alleged Rohingya genocide in 2017, cannot be viewed as a virtuous force. Their struggle against their former ally, the Myanmar Junta army, to restore disputed election results is exacerbating the illicit drug trade with profound international repercussions.

International communities must reconsider their approach to Myanmar’s internal conflict by not solely imposing sanctions on the Myanmar Junta. The NLD-NUG’s past complicity in the 2017 genocide and their commitment to terrorism and war crimes in the current post-2021 conflict necessitate a comprehensive response. Operating and commanding acts of terrorism from bases in Thailand, Malaysia, Singapore, and the United States, with funding from Myanmar migrant workers and refugee communities, further exposes the NLD-NUG’s questionable practices.

A constructive approach should be led by Myanmar’s neighbors, who possess valuable knowledge about the country and share extensive borders with Myanmar. They have a shared history and understanding of the consequences of hostilities in Myanmar, in contrast to international politicians and audiences with limited awareness of the complexities of the 75-year civil war. Preserving the ASEAN association’s principle of non-interference or imposing sanctions on both conflict parties, provided the international community comprehends the true nature of Myanmar’s key players, represents the most effective strategy in this situation.

(Maung Ba is an Australian journalist of Myanmar origin with substantial expertise in the field of Myanmar politics)

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