Overview of Construction Industry in Myanmar Date 1532019

Overview of Construction Industry in Myanmar Date -15/3/2019 Presented by Mr. Aye Lin Joint Secretary General MCEA

CONTENTS

1 Population in Myanmar conducted the Myanmar Population and Housing Census in April, 2014, and the results were announced in May, 2015. The annual population growth rate is estimated at 0. 89%. As of 1 st October 2017, the total population of Myanmar is 53, 388, 000 persons (53. 39 million). The population density was 79 persons per km 2 in 2017 -2018. Of every 100 persons in Myanmar, 70. 48 live in rural areas and 29. 52 in urban areas. Yangon Region has the largest population (7. 94 million), Kayah State the smallest (0. 31 million). The ageing index increased from 8. 8 in 1973 to 10. 2 in 1983 and to 20. 1 in 2014. In 2017 -2018 the average total dependency ratio was 51. 58%. In 2017, 51, 890 foreigners had their usual residence in Myanmar.

Population in million Annual Growth Rate Years Total Male Female Percentage % 2014– 15 51. 99 25. 07 26. 92 0. 88 2015– 16 52. 45 25. 26 27. 19 0. 88 2016– 17 52. 92 25. 45 27. 47 0. 89 2017– 18 53. 39 25. 65 27. 74 0. 89

2. NATIONAL ACCOUNT 2. 1 National Account The Gross Domestic Product (GDP), calculated at current prices, amounted to MMK 90, 450, 949. 1 million in the fiscal year 2017 -2018. The growth rate of GDP was 6. 8% in 2017 -2018. In 2017 -2018, the shares of three main sectors were agriculture sector 23. 3%, industry sector 36. 3% and services sector 40. 4% in the GDP respectively. The per capital GDP was equal to MMK 1, 694, 219 at current price in 2017 -2018. Total consumption and investment were MMK 64, 453, 021. 6 million and MMK 29, 627, 731. 5 million. Myanmar Statistical Yearbook 2018, pp 253

2. 1. 1 Annual growth rates of GDP growth rates 9 8 7 6 5 4 3 2 1 0 2013 -14 2014 -15 Years 2015 -16 2016 -17 2017 -18 Annual Growth Rates of GDP 2013 -14 8. 4 2014 -15 8. 0 2015 -16 7. 0 2016 -17 5. 9 2017 -18 (End of March) 6. 8

Per capita GDP 1800000 1600000 1400000 1200000 1000000 800000 600000 400000 200000 0 2013 -14 Years 2014 -15 2015 -16 2016 -17 2017 -18 Per capita GDP 2013 -14 1, 133, 394 2014 -15 1, 255, 254 2015 -16 1, 386, 349 2016 -17 1, 507, 268 2017 -18 1, 694, 219

2. 1. 3 Per capita consumption 1400000 1200000 1000000 800000 600000 400000 200000 0 2013 -14 Years 2014 -15 2015 -16 2016 -17 2017 -18 Per capita consumption 2013 -14 762, 401 2014 -15 898, 454 2015 -16 1, 025, 528 2016 -17 1, 104, 222 2017 -18 (End of March) 1, 207, 257

3. CONSTRUCTION SECTORS IN MYANMAR Construction Industry in Myanmar In the construction sector, the cost amounted to MMK 40, 286. 21 million in 2017 -2018. The number of buildings completed by the Department of Urban and Housing Development is 132 in Yangon. The number of total family units are 3, 594 in Yangon. The number of completed construction schools is 9, 571 in 2017 -2018. 3. 1 Annual and country investment performance and planning There are three main sectors in the construction industry—construction, real estate and industrial estate. The follow table shows the FDI investment of permitted enterprises and MCI investment of permitted enterprises in the three sectors in fiscal 2016– 17 and 2017– 18 2016– 2017 investment Construction (FDI) MMK in million USD in million 0 0 422, 260, 000 0 Real Estate (FDI) 897, 144, 000 747, 620, 000 Real Estate (MCI) 663, 005, 980, 000 287, 210, 000 Industrial Estate (FDI) 0 0 Industrial Estate (MCI) 0 0 1, 560, 572, 240, 000 1, 034, 830, 000 Construction (MCI) Total

0: 0. 21 USD in millions USD in million MMK in million 800 1000000 700 900000 600 800000 700000 500 600000 400 500000 300 400000 200 300000 200000 100000 0 Construction Real Estate FDI Industrial Estate MCI 3. 1. 2 Foreign Direct Investment and Myanmar Citizens Investment in fiscal 2017– 2018 investment Construction (FDI) MMK in million USD in million 0 0 146, 100, 360, 000 29, 710, 000 Real Estate (FDI) 1, 640, 570, 100, 000 1, 261, 980, 000 Real Estate (MCI) 1, 506, 087, 450, 000 272, 300, 000 Industrial Estate (FDI) 44, 248, 100, 000 34, 040, 000 Industrial Estate (MCI) 287, 598, 110, 000 0 3, 624, 604, 120, 000 1, 598, 030, 000 Construction (MCI) Total

Investment values in the three sub-sectors of the construction sector MMK in million USD in million 1800000 1400 1600000 1200 1400000 1200000 1000000 800000 600000 400000 200000 0 0 Construction Real Estate FDI Construction Industrial Estate Real Estate FDI MCI Industrial Estate MCI 3. 2 FDI in construction, real estate and industrial estate sectors 3. 2. 1 Investment in Construction Sector under the Foreign Investment Law Fiscal year No. of enterprises Total investment Local (MMK) 2010– 11 0 0 0 2011– 12 0 0 0 2012– 13 0 0 0 2013– 14 0 0 0 2014– 15 0 0 0 2015– 16 0 0 0 2016– 17 0 0 0 2017– 18 0 0 0 Cumulative total 0 0 0 Foreign

3. 2. 2 Investment in Real Estate Sector under the Foreign Investment Foreign Law No. of Fiscal year enterprises Total investment Local (MMK) MMK USD 2010– 11 0 0 0 2011– 12 0 0 0 2012– 13 0 0 0 2013– 14 4 321, 208, 700, 000 0 321, 208, 700, 000 440, 570, 000 2014– 15 6 765, 130, 100, 000 0 765, 130, 100, 000 780, 750, 000 2015– 16 7 801, 548, 000 0 801, 548, 000 728, 680, 000 2016– 17 3 897, 144, 000 0 897, 144, 000 747, 620, 000 2017– 18 10 1, 640, 570, 100, 000 1, 261, 980, 000 Cumulative total 30 4, 425, 600, 900, 000 3, 959, 600, 000 3. 2. 3 Investment in Industrial Estate Sector under the Foreign Investment Law Foreign Fiscal year No. of enterprises 2010– 11 0 0 0 2011– 12 0 0 0 2012– 13 0 0 0 2013– 14 0 0 0 2014– 15 0 0 0 2015– 16 1 11, 000, 000 0 11, 000, 000 10, 000 2016– 17 0 0 0 2017– 18 1 44, 248, 100, 000 0 44, 248, 100, 000 34, 040, 000 Cumulative total 2 55, 248, 100, 000 0 55, 248, 100, 000 44, 040, 000 Total investment Local (MMK) MMK USD

3. 3 MCI in construction, real estate and industrial estate sectors 3. 3. 1 Myanmar Citizens Investment (MCI) in Construction Sector (as of March 2018) Fiscal year No. of enterprises 2010– 11 14 63, 180, 000 167, 570, 330, 000 2011– 12 5 6, 890, 000 23, 110, 350, 000 2012– 13 5 45, 530, 000 80, 553, 020, 000 2013– 14 3 13, 750, 000 19, 824, 560, 000 2014– 15 4 45, 390, 000 141, 747, 030, 000 2015– 16 4 11, 910, 000 67, 508, 400, 000 2016– 17 0 0 422, 260, 000 2017– 18 0 29, 710, 000 146, 100, 360, 000 Cumulative total 35 216, 360, 000 646, 836, 310, 000 USD Total investment (MMK)

3. 3. 2 Myanmar Citizens Investment (MCI) in Real Estate Sector (as of March 2018) Fiscal year No. of enterprises 2010– 11 0 0 0 2011– 12 1 5, 500, 000 5, 000, 000 2012– 13 2 85, 090, 000 108, 500, 000 2013– 14 2 2, 040, 000 5, 200, 000 2014– 15 3 67, 470, 000 468, 349, 470, 000 2015– 16 19 451, 040, 000 1, 518, 462, 850, 000 2016– 17 5 287, 210, 000 663, 005, 980, 000 2017– 18 9 272, 300, 000 1, 506, 087, 450, 000 Cumulative total 41 1, 170, 650, 000 4, 274, 605, 750, 000 USD Total investment (MMK) 3. 3. 3 Myanmar Citizens Investment (MCI) in Industrial Estate Sector (as of March 2018) Fiscal year No. of enterprises 2010– 11 2011– 12 0 0 0 2012– 13 1 59, 740, 000 248, 200, 000 2013– 14 2014– 15 2015– 16 2016– 17 1 1 5 0 2 16, 000 1, 260, 000 5, 230, 000 0 0 51, 500, 000 14, 248, 250, 000 260, 344, 760, 000 0 287, 598, 110, 000 Cumulative total 10 82, 230, 000 861, 891, 120, 000 USD Total investment (MMK)

Residential buildings completed by DUHD Yangon Fiscal year No. of buildings Other towns No. of family units No. of buildings Total construction cost (MMK in million) No. of family units 2010– 11 27 336 6 46 6, 075, 410, 000 2011– 12 266 1, 223 12 130 30, 253, 720, 000 2012– 13 231 1, 204 0 0 43, 281, 890, 000 2013– 14 186 2, 380 77 738 69, 927, 040, 000 2014– 15 218 5, 678 64 1, 248 131, 442, 300, 000 2015– 16 249 6, 993 69 2, 220 131, 336, 290, 000 2016– 17 121 3, 138 0 0 48, 289, 240, 000 2017– 18 132 3, 594 0 0 40, 286, 210, 000

4. Construction Project in Myanmar 4 Mega Project 1. Eco Green City 2. Smart District Project 3. Korea Myanmar Industrial Complex Project 4. New Mandalay Resort City Project

1 Eco Green City Project Name: Eco Green City Project Location: Hlegu Township, Yangon Owner: Department of Urban and Housing Development, Alliance Stars Group Capital: USD 2 billion Total acres: 1, 453 Project duration: 10 years Project: Phase 1, Phase 2 For phase 1: Acres: 667. 68 Project duration: 5 years Projects: Low cost housing Medium cost housing Highway bus terminal Market and restaurant Administrative office Shopping mall Mixed use zone Park and stadium Road and infrastructure * 4, 000 units of low-cost housing are being constructed by DUHD. For phase 2: Acres: 785. 32 Project duration: 5 years Projects: Detached house International hospital International school Recreation zone Hotel zone Golf course Media village and agro-park

2 Smart District Project Name: Smart District Project Location: Dagon Seikka Township, Yangon Owner: Collaboration with Ministry of Construction, DUHD and Shwe Taung Development Capital: MMK 250 billion Acres: 1, 100 Projects: Commercial mixed used Reserved land Social housing Affordable condominium Bus Terminal Shopping center Hotel and restaurant Recreation center Housing units: 13, 000

3 Korea Myanmar Industrial Complex Project Name: Korea Myanmar Industrial Complex Project Location: Nyaung Hna Pin Village, Hlegu Township, Yangon Owner: Collaboration with Korea Land & Housing Cooperation and Ministry of Construction, Department of Urban and Housing Development Percentage of investment: 60% (LH Corporation), 40% (Ministry of Construction) Capital: Over USD 100 million Acres: 555 Project duration: 2018 to 2023

4 New Mandalay Resort City Project Name: New Mandalay Resort City Project Location: Mandalay-Lashio Road, Pyin Oo Lwin Township, Mandalay Region Owner: - Total acres: 10, 000 Project duration: To start in 2019 Projects: Phase 1, Phase 2, Phase 3 Acres for phase 1 and phase 3: 7, 057 Acres for phase 2: 3, 159 Projects: Information Technology Agriculture Economic Health Education Hotels & tourism

Other Construction Projects near Yangon Name: New Yangon Development Project Location: West of Yangon River, Kimyindine Township Owner: Yangon Regional Government Capital: MMK 10 billions (USD 7. 5 millions) Acres: 20, 000 6 ways bridge 2 ways bridge parallel in Pun Hlaing bridge 26 kilometers road Infrastructure Projects (Phase 1): Industrial Zone Power plant Power stations Water and sewage treatment plants

Other Construction Projects near Yangon Name: Yangon New World Real Estate Project Location: Mya Yeik Nyo Hotel Compound, Bahan Township, Yangon Owner: China State Construction Engineering Corporation and Zaygabar Company Percentage of investment: 60% (CSCEC), 40% (Zagabar Co) Capital: USD 500 million Acres: 14 Project duration: To finish in 2021 Projects: 5 Star hotel Residential housing Serviced apartments Condominiums Supermarket

Number of apartments constructed by DUHD within 2018 -2020 Years No. of units Status 2018 5, 748 100% completed 2019– 2020 5, 176 70 % completed Total ► 10, 924 No. of apartments in 2018 -20 5, 800 5, 748 5, 700 5, 600 5, 500 5, 400 5, 300 5, 176 5, 200 5, 100 5, 000 4, 900 4, 800 Completed Under construction Over 10, 000 units of low costs housing will be constructed under PPP in coming 3 years. Among them, over 4, 000 housing units will be constructed by Department of Urban and Housing Development and over 6, 000 units by private companies.

Future Industrial Zone Name of industrial zone project Implemented Organization/ developer Location Investment value (million) Acre USD Project period MMK Korea Myanmar Industrial Complex Collaboration with Korea Land & Housing Cooperation and Ministry of Construction, DUHD Nyaung Napin, Hlegu Townhsip, Yangon 555 110 - 2018 -2023 Zayatkwin Industrial Park Yangon Region Government Hlegu Township, Yangon 655 - 65, 000 2018 -2023 Malit Industrial Park - East Dagon Township, Yangon 400 - - Ongoing Industrial Park (Myotha) Mandalay Region Government, Mandalay Myotha Industrial Development Public Co Ltd - 313. 74 390 - Ongoing Maubin Industrial Zone Maubin development public Ayeyarwaddy region - 250 - To be finished in 2019 The Yangon Region Government has earmarked to construct industrial zones in 11 townships —Kungyangon, Kawhmu, Twante, Thanlyin, Kyauktan, Kayan, Thongwa, Taikkyi, Hmawbi, Hlegu and Htantabin industrial zones. The industrial zones will be spread over between 750 acres and more than 1, 800 acres.

“THANKS FOR YOUR ATTENTION”