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March 08 - 14 | 2014 ECONOMY Myanmar To Gain US$1 Billion In FDI From Telecoms Operators In 2014 Source: Thura Swiss Of the estimated US$ 5 billion FDI expected to pour into Myanmar in the 2014-2015 fiscal year, about 20 percent of that will come from the growing telecoms industry, according to a report by local media. In June 2013, Qatar’s Ooredoo and Norway of Telenor were announced as the successful international companies in a hard-fought battle for licenses in an industry where less than 10 percent of the nation’s 60 million population had access to a phone in 2013. After months of wrangling over the telecoms bill, the companies were officially granted their licenses in January. Both companies expect to roll out their services by the end of the year. While Ooredoo and Telenor are the only international companies able to provide telecoms service on a stand-alone basis – one international consortium, thought to be from Japan, is expected to team up with local telecoms company Myanma Posts and Telecommunications (MPT) to begin services soon – other international companies are eyeing Myanmar’s lucrative telecoms market.

INVESTMENT MATRADE Targets Rm400 Million Worth Of Projects In Myanmar Source: The Malaysia External Trade Development Corp (Matrade) targets RM400 million worth of construction projects in Myanmar for Malaysian companies. In a statement Wednesday, Matrade said the projects include residential, commercial, industrial parks and mixed developments such as hotels, office buildings and shopping malls. The projects are owned by government-related agencies and private entities identified by Matrade, it said. "Malaysian firms are in the best position to contribute to the development in Myanmar due to outstanding track record in undertaking various construction and infrastructure projects globally," said Matrade. Last year, Matrade said, projects worth RM330 million were identified, adding Myanmar offers huge business potential and opportunities, especially in the infrastructure and property development sector. "There is a surge in demand for modern residential and commercial properties due to the people's changing lifestyles and foreign investors' influx into the country," said Matrade. Nine Malaysian construction companies will be joining a Matrade Specialized Marketing Mission to Myanmar on March 17-21, to meet project owners and assess projects that have been identified, as well as to participate in the Myanmar Infrastructure Summit and Exhibition in Yangon, the commercial capital.

RETAIL New Ocean Shopping Centre At Tamwe Junction Underway Source: Myanmar CNN News Marketing Director Ms. May Zin Soe Htet said they arranged to open a new Ocean Shopping Centre by end of March 2014 at Tamwe Junction. The four story building started construction end of 2012. "Now construction is 75% complete, there is a basement car parking and the remaining three floors will be a shopping centre, including a children playground and some restaurants" said Ms. May Zin Soe Htet. Moreover, City Mart Holding Co., Ltd plans to open a new City Mart Supermarket at South Dagon and Ocean Centre at Mandalay by May 2014.

RESIDENTIAL Shwe Than Lwin Reclaims Lucrative Land Deal Source: Eleven Myanamr Shwe Than Lwin Company has asked the Ministry of Construction for over 10 acres of land to be re-allocated after abandoning the site in 2006 because it was unprofitable. As land prices skyrocket due to increased investment and speculation, the company has applied to the Department of Human Settlement and Housing Development (HSHD) to get its original housing project back. “At that time, Shwe Than Lwin returned the land for fear of loss. But they have now asked for it again only when land prices are skyrocketing. The government should consider whether it is appropriate or not,” said a businessman on condition of anonymity. The company was originally allocated 10 acres of land between the Sedona Hotel and the Central Bank of Myanmar to construct the Pyinnyawaddy Housing-2 project in 2006. The company gave up the project and handed the land back to HSHD because it was not deemed profitable at the time. Land in the area now costs up to Ks 600,000 per square foot and the company has applied to get the project back under a new name: Shwe Than Lwin Highway Ltd.

HOTEL & TOURISM Myanmar Granted Top Tourism Award Source: Thura Swiss The European Council on Tourism and Trade (ECTT), a subsidiary of the European Union, will hand Myanmar the title of ‘World’s Best Tourism Destination’ for 2014, local media have reported. The award is aimed at boosting Myanmar’s already growing tourism industry and promoting tourist attraction in the country. Myanmar’s tourism industry has made huge strides in recent years, since a quasicivilian government came to power in 2011 and began implementing reforms that have opened the previously isolated country to the international community. The country has seen a record number of arrivals in recent years, with 1 million visitors arriving in the country in 2012, and double that again in 2013. The Ministry of Hotels and Tourism has set a visitor target of 3 million for 2014. Myanmar introduced Visas-on-arrival for the first time in 2012 and has come to a visa-agreement with a number of neighboring countries in Southeast Asia. It also plans to reach an agreement with all nine other members of the ASEAN bloc in the near future. Despite huge potential in the country’s tourism industry, challenges still remain, mainly with regards to infrastructure. While hotels are being built, particularly in the largest city Yangon, the demand for hotel rooms still far out-weighs supply, which is leading to disproportionate prices in hotel rooms. Some hotels in Yangon have increased prices by more than 500 percent in the last two years. Intercity travel also remains an issue for many travelers. Domestic flights remain relatively expensive, while overland trips are long and often made on uncomfortable roads.

GENERAL PROPERTY South Korean Builders Eye Myanmar Source: Myanmar Business Today Major builders and engineering firms in South Korean are seeking to win more mega construction and plant project orders in Myanmar, with an eye on Malaysia also. The South Korean Ministry of Land, Infrastructure and Transport said that it has dispatched a special team of government officials led by Minister Suh Seoung-hwan to support South Korean builders. The team was joined by representatives from over 10 private builders, including Hyundai Engineering & Construction, Samsung C&T, Daelim Industrial and Ssangyong E&C as well as the state-run Korea Water Resources Corporation, Korea Expressway

The delegation visited Myanmar to draw support from the Myanmar government for Korean builders to participate in a management project for the Irrawaddy River. The 2,170-km river is the largest in the country and also the most important commercial waterway. The South Korean Ministry said the development projects will be put up for bidding in the first half of the year at the earliest. "Asia has emerged as Korea's key market for construction and plant business," said Park Byung- seok, a director at the ministry's overseas construction support division. "In particular, a large number of project bids which we have recently won came from Southeast Asia, making it strategically important." Metal Scaffolding Taking Hold Source: The Myanmar Times In a sign of maturing for Myanmar’s property market, more efficient metal scaffolding is replacing the traditional bamboo scaffolding in development projects in Yangon as buildings get higher and bamboo becomes more expensive, construction experts said. Though it is still common to see partly constructed buildings swathed in a framework of wooden scaffolding poles tied with coconut-fibre rope, metal is proving a far safer option for contractors as it is more convenient, longer-lasting and even cheaper, said U Ko Thawdar Swe, a supervisor with local contractor Net Ray company. “Metal scaffolding is easy to use and light to transport and it is safer than bamboo. It can be used for exterior painting as well as construction,” he said. Erecting wooden scaffolding for a five-storey, 1200-sq-ft building takes seven workers one week, while removing the scaffolding takes two days, he said, adding that it would require 200 pieces of bamboo to get the job done at a cost of K200 each, plus K30,000 worth of coconut-fibre rope and a K150,000 charge. “If we buy one set of metal scaffolding, it costs only K30,000, and if we hire it out we ask for only K500 per piece per day with an advance,” said Ko Thawdar Swe. With projects getting bigger and modern development standards becoming more of an issue, metal scaffolding is increasingly used in the construction of hotels, condos and buildings higher than six storeys, he said. Bamboo has also become rarer and more expensive. “If the bamboo is new, it is safe, but scaffolding can break if it has been used more than three times,” he said, adding that metal scaffolding can last up to 30 years if properly maintained. Government Set New Taxation Rate for Buying Property with Black Money Source: 7days Daily Newspaper The Pyi Htaung Su Lutt Taw set the new taxation rate of buying property for the buyer who could not disclose the sources of income. If the property cost is MMK50,000,000 (USD52,083$), the tax rate will be 3% If above MMK50,000,000 to MMK 150,000,000 (USD156,250$), the tax rate will be 10% If above MMK150,000,000 to MMK 300,000,000 (USD312,500$), the tax rate will be 25% If above MMK300,000,000 to, the tax rate will be 30% Over 100 Buildings Await Reconstruction in Yangon Source : Eleven Daily More than 100 dangerous buildings out of 1,600 in Yangon have been waiting to be reconstructed since 1994 despite the property boom in the commercial city, local media reported. The common reason for delays is disputes over land ownership, the report added.


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Myanmar Market beat (vol 8 march 08 march 14 2014)  

Covering property news and Colliers activity in Myanmar.

Myanmar Market beat (vol 8 march 08 march 14 2014)  

Covering property news and Colliers activity in Myanmar.