INVESTORS COULD CHANNEL UP TO US$4.9 BILLION INTO RAKHINE THIS YEAR

NEWS
Foreign and domestic companies last week signed 28 expressions of interest (EOI) to conduct business worth a potential US$4.9 billion in the state this year.
(Source: The Myanmar Times, February 25, 2019)

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RESEARCH VIEW

The Rakhine State Investment Fair in Ngapali depicted the immense interest of both foreign and domestic firms to invest in Rakhine State. According to the Ministry of Finance, Revenue, Planning, and Economy, foreign companies alone so far have invested up to US$9 billion. Home to beaches in Gwa Township, Man Aung Island, and Myauk-U (considered as a UNESCO World Heritage Site), tourism industry in the state is flagged as one of the sectors with the best prospects for growth and sees potential for eco-tourism destinations. With the ongoing development of the Kyaukphyu Special Economic Zone in partnership with China and the Kalatan River Route Project with India, we see much of Rakhine’s economic potential still remains untapped in other industries as well. With upcoming projects to be implemented in the state, we are optimistic to see the responsible investments and encourage the Myanmar Investment Commission (MIC) and state government to give close attention to the economic issues in Rakhine and work together to support the ease of doing business in the area.

CHID BANK TO INTRODUCE 30-YEAR INSTALLMENT SYSTEM

NEWS

With the aim of enabling the Yangon residents to buy houses, the city’s Department of Urban Housing and Development has started working on a 30-year installment plan with Construction, Housing and Infrastructure Development Bank (CHIDB).
(Source: Eleven Myanmar, February 25, 2019)

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RESEARCH VIEW

Under long-term repayment plans with official development assistance from Japan, several affordable housings have become more available in Yangon over the years. With its loans available mainly in commercial, construction, and housing sectors, CHIDB has lent over MMK 227 billion as of 2018, with annual interest rates ranging from 10.5-13% and loan periods of 4-15 years. The introduction of 30-year installment plan with 8.5% interest rate will rapidly gain traction among residents seeking for affordable housing mortgage with flexible repayment terms. As Colliers views it, the eventual proliferation of mortgage and deposit provisions is seen to change the residential market, which traditionally has been out of reach for majority, especially low and middle-income earners.

AIRPORT IN CHIN STATE TO OPEN BY SEPTEMBER 2020

NEWS

Surbung Airport in Falam Township, Chin State, the first major airport in the state, will open in September 2020, said U Ye Htut Aung, Deputy Director General of the Department of Civil Aviation.
(Source: The Myanmar Times, February 27, 2019)

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RESEARCH VIEW

The construction of Surbung Airport, originally scheduled for completion in FY 2021-2022, began its construction in FY 2016-2017. Recently, the instructions have been given by State Counsellor Daw Aung San Suu Kyi and President U Win Myint for the construction to be completed in 2020, a year earlier than the original deadline. Developed on 1,289 acres of land in Falam Township, the airport will be the first major airport in the state with the total runway length of 2,000 meters. After completion, aircrafts with the capacity of carrying 50-70 passengers will be able to land in the airport. While the government has taken steps to improve infrastructure, more needs to be done to upgrade airports, roads and public transport to ease domestic travel and extend the length of stay for many tourists.