All private banks in Kyaukphyu, Rakhine State, have been closed as junta troops tighten security in Kyaukphyu and its suburbs. The heightened security in Kyaukphyu comes as the Arakan Army (AA) escalates its offensive in southern Rakhine State.

The AA has already occupied Ramree, Sane and Ma-I in surrounding areas of Kyaukphyu. It has also launched offensives in Toungup and Ann and the war is raging in these areas.

Local residents in Kyaukphyu say that all private banks including Kanbawza (KBZ), Co-operative Bank (CB), Asia Green Development Bank (AGD), Ayeyarwady Bank, and Global Treasure Bank have been closed since 15 November. Cash flow is badly hampered by the closure of these banks in the city as well as the halting of all banking transactions.

The junta has concerns over attacks on the Special Economic Zone (SEZ) project and deep-sea port project in Kyaukphyu. Many major Chinese projects are also in Kyaukphyu.

In response, security has been tightened at the Danyawady Naval Base in the city.

Light Infantry Battalion (LIB) 542 and LIB 543 camps on the outskirts of Kyaukphyu have enhanced their defence plans by planting more bamboo stakes around their fences and deployed security forces at the Infantry Battalion (IB) 34 camp.

The Kyaukphyu-Zinchaung road, the roadway exit from Kyaukphyu, is under complete AA control. Local residents say junta troops have to rely only on waterways and airplanes for transport.

Local residents also say that many of them are fleeing the town as the fighting closes in on the city.

The China-Myanmar Joint Security Company was formed in early November for protection of the Kyaukphyu SEZ and Chinese investments and special projects. It is led by Navy Maj. Gen. Kyaw Shwe Tun. Chinese security forces and technicians are a part of this security force.

The AA has occupied ten townships out of a total 17 townships in Rakhine State as well as Paletwa Township in Chin State.