The largest ever contract to-date in Myanmar to supply elevators has been won by the Swiss company Schindler. The contract is to supply and install 79 elevators and 24 escalators in the Times City project in Kamayut Township, Yangon. Planned completion date is 2017. The 27 and 23 storey towers will provide luxury space for offices, private apartments, a 5 star hotel with 500 rooms and shopping centres including the Yatanar Mall.
Schindler, with 54,000 employees, operating in more than 100 countries, is a leading provider of elevators, escalators and mobility solutions that include moving walkways; all with sophisticated monitoring and maintenance systems. International standards are demanding; Myanmar Jardine Schindler confirmed they had been working closely with the project developers, Crown Advance Construction over the last two years to create an advanced and highly efficient transportation plan for this prestigious site. The entire development, of which this order is part, is reported to have a total budget of Ks100bn according to the joint developers Crown Advance Construction and Yangon City Development Committee (YCDC).
The United Overseas Bank of Singapore (UOB) has announced approval, with their corporate clients, for investments totalling $300m. This will fund various projects in Myanmar over the next 12 months.
This provides the go ahead for construction of new commercial buildings, hotels and factories. This is a clear confirmation of their confidence in the long term opportunities for development in Myanmar. They emphasise that their focus is on Infrastructure, Hospitality and Manufacturing projects.
UOB Group is one of Asia’s leading financial institutions with a network of 500 offices spanning 18 countries and territories.
The bank estimates that Myanmar will attract $16Bbn in foreign direct investment over the next 15 years due to the changes that started three years ago. They predict 75% will be allocated to infrastructure projects, 13% manufacturing and 4% to tourism. UOB is the first bank to offer a foreign direct investment advice centre in Myanmar. In May, the bank opened its first Myanmar offices, at the Park Royal Hotel, Yangon.
UOB had already also confirmed funding for a French-Myanmar joint venture to redevelop a hotel in Yangon. Reports state this was the first overseas bank to offer support for a project within Myanmar.
The new hotel will be called The Rangoon Excelsior Hotel. The site being originally, the 5 storey building of the Trading Corporation at Bo Soon Pat Street, in Pabedan Township. The site, covering 0.3 acres, is owned by the Myanmar Investment Commission (MIC). The hotel will offer 76 rooms.
The Bosch Group, whose head offices are in Stuttgart, Germany, has reported an increase in annual sales of 70% for Myanmar, thanks to growing demand from the automotive and construction sectors. The company opened its Myanmar sales offices in 2013.
Across South East Asia they recorded 7% growth producing $893m. Bosch provides technology and services for Mobility Solutions, Energy and Building Technology, Industrial Technology and Consumer sectors.
Although no detailed figures were provided for sales in Myanmar it is understood sales also included supply to commercial construction sites, hotels, residential projects and airports.
The Charoen Pokphand Group Co. Ltd., of Thailand have announced they are to purchase an 8 storey office building in Yangon. The project has a reported value approaching $15m.
The group had noted the steady growth in demand for office space in Yangon, which prompted the investment. Company officials stated that they estimate the project will pay for itself in 5 years. The rental rates forecast are $60-80 per sq. metre per month. In Yangon, some rentals are already commanding $80 per sq metre. This is the first of a series of large international investments by the group, planned over the next 24 months.
Charoen Pokphand Group (CPF:TB Bangkok) is an industrial conglomerate, active in many sectors including, agribusiness and food, retail and distribution and telecommunications. The group has also announced plans to expand in other countries including Vietnam, Laos, Cambodia and Europe. Annual revenue for the group in 2013 was US $ 41 Billion.
A new three star hotel is planned at Thandwe Airport. Thandwe is in Rakhine State, on the Western coast of Myanmar. Reports state the joint venture is between the Department of Civil Aviation (DCA) and Myanmar company, Golden Hanthawaddy.
Phase 1 of the hotel, providing 10 rooms, will be finished in December and a total of 98 rooms will be available upon completion. The aim of the project is also to provide more hotel rooms to serve the popular Ngapali Beach resort area. No figures were announced on the project budget.
This is the first commercial joint venture by the Department of Civil Aviation, who confirm they had purchased the land originally to provide offices for the national carrier. This is now re-allocated for the hotel. The national flag carrier for Myanmar is Myanmar National Airlines.
Although still awaiting approval, as at 24th June, the new minimum daily wage is expected to receive authorisation and be set between Ks 3,200 ($3) and Ks 4,000 ($3.7).
Discussions have been ongoing since 2013. These were driven initially by the aim to reduce tensions between factory workers and owners. This expanded to other sectors of industry and commerce.
Trade Unions requested Ks 4,000. Factory owners responded claiming any wage above Ks 2,500 would lead to factory closures. Further meetings have produced this announcement.
Whereas a factory worked may on average earn Ks 1,000 per day with bonuses, factory owners state the worker could earn per month from Ks 100,000 to Ks 150,000 when taking into account bonuses for the volume of work completed. A bonus system, they claim, is required to motivate staff. Wages tend to be higher in Yangon compared to elsewhere in Myanmar.
The Lippo Group of Indonesia has confirmed plans to build 20 new hospitals in Myanmar with a total project value of $1bn over the next ten years. Up to seven hospitals will be in Yangon. The Myanmar Investment Commission (MIC) has already approved the plan.
In 2014 Lippo Group and First Myanmar Investment (FMI) created a joint venture to update and provide international standards of medical facilities at the Pun Hlaing International Hospital, located in the Pun Hlaing Golf Estate.
The plan announces establishment of facilities outside of Yangon, which is a first for the Lippo Group, who confirm they wish to provide facilities at a national level in Myanmar.
Of the 20 new builds, the plan proposes 12 to be operational within 3 to 5 years.
Further announcements may follow concerning Lippo Group and new commercial retail property projects
Parliament has approved a soft loan of $138m from South Korea. The loan is for 40 years with an interest rate of 0.01% and according to sources no repayments will be made during the initial 15 years of the loan. This is a successful outcome following meetings in 2014 of the President of Myanmar when he visited South Korea. The total cost is estimated at $168m and the remaining funding will be sourced by the Myanmar Government. Yangon-Dala bridge will take five years to build and will be 6,144 ft in length.
Dala is on the Southern bank of the Yangon River across from downtown Yangon. The area has not seen much development. Access has only been via a ferry. The new bridge will link Phone Gyi Road, Landmadaw to Bo Min Yaung Road, Dala.
Local reports confirm that developments are planned at Pazundaung railway station with a scheduled start in January 2016 for Myanmar Railways (MR).
The site is in Pazundaung township in the South Eastern area of Yangon, Myanmar. 13 companies have expressed interest in the construction of multi-storey parking for 2,000 cars. Due to the area available, 2.73 acres, further announcements are expected for the construction of a hotel and a shopping centre. So far mostly local firms have responded to the invitation. A joint venture is envisaged with the successful bidder.
The car park is in line with other plans to ease traffic congestion in Yangon. These include the construction of flyovers and nationalising bus services. Yangon International Airport is located to the North of Yangon, distance 18kms.