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Published on Sunday, 09 December 2012 05:21
Businessmen from home and abroad who are willing to launch industrial enterprises through the (CMP) system are facing a barrier to investment due to the soaring price of industrial lands, joint secretary Aung Min of the Myanmar Industries Association said.
The move came after a workshop on CMP development was held on December 2.
Those wishing to invest in the industrial sector will have to spend about 80 per cent of total investment capital on the purchase of land. Scarcity has led to the soaring price of land and become a barrier to investment.
So as to overcome the scarcity of industrial land, the workshop pointed out that small-and-medium enterprises should be established in large compounds far from populated places. Emphasis should be placed on approval from neighbours, fire hazards, environmental conservation, systematic removal of rubbish and disposal of sewage water at the workshop.
The government should reclaim industrial land plots and sell them to only those really wanting to run a business. Rules and regulations should be prescribed not to re-sell or hand over industrial land plots.
There are 24 industrial zones in Yangon, with an estimated 20,000 acres in total. Only 3,562 industries are currently operating. About 80 per cent of all industrial land have fallen into the hands of property speculators, sources said.
The industrial zones running in Yangon are Mingaladon, Shwelinban, Dagon, Dagon (East), Hlinethaya-1,2,3,4,5,6 and 7, North Dagon, North Okkalapa, Shwepyitha-1,2,3,4 and 5, Thadukan, South Dagon-1,2, and 3, South Okkalapa and Thakayta.
According to the data released by the Ministry of Industry, there are 3,179 acres and 3,319 industries in Yangon East District, and 2,436 acres and 625 industries in Yangon North District.
The current price for one acre in an industrial zone in Yangon ranges from US$588,235 (100 million kyats) to US$2.9 million ( 500 million kyats). However, the price for one acre land in other townships is above the average US$588,235 (100 million kyats).