Myanmar has expected a rise of K13.5 billion in construction sector in 2020 according to a review of annual changes in the construction sector.
The remarks came from the press conference on Myanmar Build & Décor 2018 held at the Republic of Union of Myanmar Federation of Chamber of Commerce and Industry also known as the UMFCCI in Yangon on September 6.
“Some tenders of basic education are in a state of backsliding because of mini budget. The upcoming budget is for one year, but now we are going on with six-month budget. Anyhow, tenders of the State will be increasing soon,” said Myo Myint, general-secretary of the UMFCCI.
When Apartment Law and Condominium Law come into effect, the sales of condos and apartments will be on the rise. The construction sector will see some progress in 2020, said Myo Myint.
“As soon as the apartment and condominium laws appear, the sales of apartments will be able to go up. There will be progress in the privatisation sector,” said Myo Myint.
Myanmar has been a gradual increase in the construction sector. Gradual changes have been found in the construction sector. The construction sector will increase by 10.37 percent from 2016 to 2020. Yangon will have half of its population in the next 20 years. At that time, infrastructures such as civil services, transport and housing will be provided by the government. These facilities are needed to fulfill the needs of the increasing population. These requirements have to be managed in advance, said Win Khaing, Former Union Minister for Construction, at the ceremony to present keys for Yadana Hninzi high-class housing and apartment held in Yangon in 2017.
Yangon has a population of over 5.2 million now. In 2040, Yangon will have more than 10 million people, said the former minister.
From 1989-1990 fiscal years to July of 2018, an investment of US$37.767 million flowed to Myanmar’s construction sector. This amount accounts for 0.05 percent of total foreign investments flowing to Myanmar, according to the statistics of Myanmar Investment Commission.
The government has given permissions to 68 citizen investments. More than K1000 billion came from the citizen investments. This amount accounts for 6.1 percent of total citizen investments.
“Yangon is seeing a decrease in construction sector at the moment. The sales of condos and apartments are going down with a difficult financial flow. In order to recover the unpleasant situation, new laws and policies will become important and we will have to monitor them with care,” said Myo Myint.
Translated and Edited by Win Htut