Dec 7, 2014

FDI in estate business soars to $1.3 bn

Foreign investment in housing development sector has surged to US$1.3 billion as of October with Singapore and Hong Kong investors topping the list, according to Myanmar Investment Commission (MIC).

“Foreign investment goes mainly into the hotel and real estate business and Singapore and Hong Kong come first,” said Aung Naing Oo, the secretary of the commission.

In a three-year period, the electricity supply realm is leading Myanmar’s investment trend followed by commodity and telecom sectors.

“Commodity productions like garments, assembling electronic devices, and other labour-intensive industries are the major attraction to foreigners. In telecom sector, the installation of communication towers draws many construction companies from abroad. This sector was unnoticed till 2011,” the secretary explained.

The MIC prioritises labour-intensive industry when it comes to promoting investment since such investments can provide a great deal of job opportunities for the locals.

Production of value-added products comes second in MIC’s priority list.

Electricity shortage and poor-structured harbours are still making obstacles for the inflow of investment in massive industries.

China has entered the local estate business indirectly through Singapore, or some come and invest under the names of Myanmar citizens since both foreign investment and citizenship investment are allowed in this sector.

Similarly, some investors do not apply for MIC’s permission, for example, the New Star Light Company is permitted to invest in Muse but does not has the consent of MIC in developing Mingalar Mandalay Project in Mandalay Region.

According to figures released by MIC till the end of October this year, China has engaged in 58 businesses worth $14.3 billion; Singapore in 106 businesses worth $6.68 billion, and Hong Kong in 73 businesses, worth $6.5 billion respectively.

Source: Eleven Weekly Media