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
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