YANGON, June 28 -- A report by Timetric Construction Intelligence Center (CIC) has found that over the next five years Myanmar’s construction industry is to grow at a rate of 10.37%.
In 2015 the industry’s value was worth Ks9 trillion (US$8.2bn) and is expected to climb to Ks15
trillion (US$13.5bn) in 2020, according to the press release.
The improvement of the county’s economic conditions depends on government investments in residential, energy and utilities, and public infrastructure projects, as well as a rise in foreign
investments, according to the report.
Danny Richards, Lead Economist at Timetric’s CIC said in the release, “Government flagship programs such as the National Transport Master Plan, National Export Strategy (NES), and National Electrification Plan will promote industry growth over the next five years, adding, “However, the underdeveloped regulatory and financing environment and a lack of transparency in the tendering process will prevent the construction industry from expanding at a faster pace.”
Residential construction was the largest market in Myanmar’s construction industry over the last five years, accounting for 49.9% of the industry value in 2015.
The market rose from (US$3.6 bn) in 2011 to value (US$5bn) in 2015. The growth was driven by government investments in affordable housing programs that are being undertaken around the country as apart of the governments second National Development Program.
During the next couple of years the market is forecasted to remain the largest in the industry, to value Ks11 trillion (US$9.7 bn) in 2020.
Infrastructure construction was the second-largest market in the construction industry during the review period, accounting for 19.4% of the industry’s total value in 2015. The market rose from Ks 2 trillion (US$1.3 bn) in 2011 to Ks3 trillion (US$1.9 bn) in 2015.
Over the forecast period, infrastructure construction is expected to maintain its position, supported by the ongoing government efforts to improve this segment.
The government will invest Ks28 trillion (US$26.8 bn) under the National Transport Master Plan, allocating funds to road, rail, water and air transportation projects until 2030.
Consequently, infrastructure construction is expected to reach Ks6 trillion (US$4.2 bn) in 2020.
