Speculators could stall investment, says minister

Land prices inflated by speculation may be deterring foreign companies from investing, the planning minister has warned.

Dr Kan Zaw, union minister for National Planning and Economic Development, blamed speculators for artificially forcing up the price of land in an attempt to profit from the entry of foreign investors.


“Though people say land prices are very high, these are not actual trading prices but mostly the result of speculation. People thought land prices would rise when foreign investors came, so they are holding onto the land and asking high prices,” he said.

The minister was speaking at the ASEAN 100 Leadership Forum, held in Yangon on December 5-6.

At the same event, Vice-President Dr Sai Mauk Kham urged investors to take part in the country’s liberalisation and development, saying their support would help the country advance further.

“Conditions for all-round development are now very favourable. We are taking the opportunity to strengthen and encourage regional cooperation and integration,” he said.

“We are determined to succeed in our political and economic reforms. We believe Myanmar will be a reliable partner and an effective contributor to peace and prosperity in the region. We believe our reforms will bring maximum benefit if they are complemented by the support of the international community. In this regard, we are seeking the encouragement and support of our regional and global partners,” the vice-president said.

“Our opportunity to host the SEA Games next year and to assume the ASEAN chairmanship in 2014 provide a golden opportunity for Myanmar to demonstrate that we are determined to move forward and to be a responsible member of the international community,”he said.

The vice-president said the new foreign investment law offered a range of privileges and full protection to investors.

“The new law takes into account the interests and concerns of all stakeholders to ensure that it is beneficial to all parties. Potential investors not only have privileges related to income, commercial tax and duties, but also guaranteed protection for their property and profits. 

They are warmly welcomed to invest in the Thilawa, Dawei and Kyauk Phyu deep-sea port projects and also in our special economic zones,” he said.

Planning minister Dr Kan Zaw said more reform measures would come into force next year.

“Laws on the Central Bank, telecommunications and many other reforms are being addressed now. You will see more significant reforms starting April 1,” he told participants in the meeting.

The influx of international interest the government had generated in its 20 months of existence had not yet translated into significant practical investment, said leading businessman Mr Serge Pun, founder of Serge Pun and Associates. He agreed that land price speculation was one of the barriers to foreign investors. Some, he said, were “sniffing around”, others had decided to invest but were awaiting specific changes in the law, and others still were ready to spend money.

“Myanmar urgently needs its reform process to succeed in order to create a million jobs for our people. That’s a thousand factories each employing a thousand people. High land prices are holding things up,” he said.

Both local and foreign companies were pleased with the foreign investment law, said Mr Pun, adding: “Now everybody is waiting for the by-laws.”

Other would-be overseas investors were seeking local partners, while some of those already established here wanted to expand, and were preparing to issue detailed plans, participants heard.

source: The Myanmar Times
http://mmtimes.com/index.php/business/3511-speculators-could-stall-investment-says-minister.html