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.