Myanmar’s economy may be booming with growth expected to come in at 8.4 percent this year, but the country’s skyscrapers are being cut down in size. The Business Times reported that the regional government in Yangon, led by the National League for Democracy, halted work at 185 construction sites in the city. In addition to this, officials demanded that the number of floors be reduced at more than 10 buildings which had already received government approval.
Developers are concerned that these changes require them to incur significant losses and also risks scaring away foreign investment in the future. Local developer Bo San claimed that his 12-story residential project in Yangon was approved by the government allowing him to start construction three months ago. However, the ruling party forced him to stop recently and make the project two floors shorter to ensure it complies with the government’s new height regulations.
“I understand and accept that the policy was changed when the government changed,” he told the Business Times. “But the new policy should be imposed on new projects, without affecting previous projects.”
Sansiri’s chief executive officer, Apichart Chutrakul, stated that while there are property investment opportunities in Myanmar, at the moment the benefits do not outweigh the risks involved. “We have looked, but it depends on the law itself,” Apichart explained to the website. “For now I don’t think it is the right time.”
The height of buildings is not the only problem troubling the country at the moment. Despite strong economic growth figures, the National League for Democracy has yet to reveal the details of its economic plan. It was supposed to be released in July, but only basic economic goals were announced. Rival political parties have noticed this and raised a few issues with the lack of details currently available.
“This is not an economic policy; it is the party’s general statement,” Khin Maung Swe, chairman of the National Democratic Force, pointed out. “They have to say how they will increase GDP and per capita income, how they will manage inflation, how they will increase productivity. They have to tell us these plans. But now there is nothing.”
