Dollar appreciation is a drawback to local construction sector as the country has to import nearly 90 per cent of construction materials, said Ko Ko Htwe, Patron of Myanmar Construction Entrepreneurs Association and chair of Tawin Family Company, at a talk on the condominium law and challenges being faced by construction sector, at Pan Pacific Hotel in Yangon on August 26.
Tin Maung Win, Chair of Lower House Communications, Transport and Construction Committee, Myo Myint, General Secretary of Myanmar Construction Entrepreneurs Association and Kyaw Naing Oo, the member of the Central Committee and chair of Naing Group Holdings Company also discussed the challenges the construction sector is facing.
Construction materials are directly related to US dollar price as the country has to import about 90 per cent of construction materials. Prices for construction materials are coupled with the dollar appreciation. Sand and pebble industries have to use diesels. Diesel prices will increase if the dollar appreciates against local currency. Entrepreneurs face difficulties as they cannot sell apartments at increased prices. It is directly proportional to the construction industry. Another point is commodity prices have gone up due to the greenback appreciation. People cannot pay attention to their accommodation as prices for foods and clothing have increased gradually,” said Ko Ko Htwe.
Tin Maung Win said: “Greenback appreciation has a huge impact on the construction sector as well as on other sectors. It needs to seek remedies for the greenback appreciation.”
Sandar Min, chair of Yangon Region Parliament Finance, Planning and Economic Committee said: “I would like to say that we get low-quality buildings as the budgets allotted to construction companies for the projects, are not sufficient due to the dollar appreciation. The reason is the budgets allotted for schools and staff quarters projects are different due to variances.”