Writer: Sithu Aung
Almost 90 per cent of the construction industry of Myanmar is led by small and medium Enterprises (SMEs) and the industry’s ability to make profit has been declining since early 2017, according to Myanmar Builders Guide (MBG).
Almost 5 per cent of Gross Domestic Products of Yangon Region is generated from the construction industry. Among the GDP shares of Yangon Region, it has generated, respectively, 37 per cent from manufacturing, 25 per cent from trading, 24 per cent from services, 8 per cent from agriculture, and 1 per cent from other sectors.
The GDP share of the construction industry in Yangon Region declined in the 2015-2016 FY and it was still down in 2016-2017 FY, the MBG stated.
In the construction industry, 90 per cent of the market is held by the SMEs and the remaining 10 per cent is run by foreign investments and large constructors. Amongst, 93 per cent of businesses run with fewer than 50 man power, 4 per cent run with 50-100 man power and 3 per cent run with over 100, according to the data of MBG.
The former government allowed multistory buildings. However, the current government prohibited it for a period. Although permission to build multistory buildings has resumed, the pending period negatively impacted the market and contractors. Additionally, not one new project has been allowed since the new government took office.
Translated by TMH