Illegitimate Chinese companies hog housing projects in Myanmar

Illegitimate Chinese companies hog housing projects in Myanmar

Published on Wednesday, 30 November -0001 06:24

Majority of the housing and residential projects in Yangon, Mandalay and Muse have been dominated by illegitimate Chinese companies.

"New Star Light Company which is currently operating 300-acre wide luxury complex in Muse and the company implementing Mingalar Mandalay housing project in Mandalay are of the same root. They are financially more powerful than Xiao Pan and Xiao San brothers [Chinese tycoons recently popular for trying to carry out the new town plan in prime lands of Yangon]. Likewise, Dagon City 1 and Golden City housing projects are run by Chinese," said a local businessperson upon Myanmar Global Investment Forum.

The information was expressed on the second day of Myanmar Global Investment Forum while Cyrus Pun, the executive director of Yoma Strategic Holdings joined the panel discussion.

"Since three years ago, I noticed the foreign investors had withdrawn their hands from local business atmosphere. It's not because they weren't interested with, but of the hiking land prices caused by speculations. Also, they weren't satisfied with the competitiveness of the tender as the local companies won in most projects," claimed Cyrus Pun.

The native businesspersons' investment in housing sector accelerated and reached Ks 700 billion [US$700 million].

"As the Investment Law gives tax-free privileges to foreign investors, the officials aren't willing to hand [housing] development projects to foreigners lest they sell their possessions and flee from the country. But the Chinese tycoons register their projects with the names of the Myanmar citizens, and so their investment is put under citizenship investment," said the local businessperson.

Since the economic reforms kicked off in 2011, the Chinese tycoons and Chinese-backed local businesspersons have surged into and monopolised the property market – making it difficult for other foreign investors to enter.

The Muse Central Business District Project – implemented by New Star Light Company – sits on the Ruili river bank along the Myanmar-China border and encompasses 294 acres of land. It comprises economic zone and residential buildings.

"The Muse CBD Project is interesting. Its location covers the 60 per cent of the two countries' border hub and sits near the Ruili town – home to a 1.5 million population. The project also includes 200 high-storey buildings," said Putu Kamayana, advisor of New Star Light Company during the forum.

The local businessperson argued: "The New Star Light Company runs a massive housing project in Mandalay too. I have no doubt the project would raise the living standards of Muse residents. But development is not the main decision factor. For example, the Malaysian government bars Singaporeans from acquiring lands in Jaho province; in case the land dominated by the foreigners." 

Following the Chinese government hunted down the corrupted officials inside politburo, the Chinese tycoons should have flocked into Myanmar through the Chinese residents in Muse to run business under the title of citizenship investment. 

Many reviewed the Chinese government is responsible to conduct wide inspections over entry of the malicious Chinese business owners to Myanmar as this conflict can lead to further geopolitical concerns.

http://www.information.myanmaronlinecentre.com/illegitimate-chinese-companies-hog-housing-projects-in-myanmar/