Industrial land price hike causes barrier to investment
Published on Sunday, 09 December 2012 05:21
Local and foreign businessmen are facing a barrier in munufacturing investment because of soaring prices of industrial land, joint-secretary Aung Min of Myanmar Industries Association said.
He expreesed the concern at a workshop on CMP (cutting, making, and packing) system on December 2.
Businesses in this industrial sector are tspending as much as 80 percent of the total investment on the purchase of land.
Land scarcity has led to soaring land priced and a barrier to the investment.
In order to overcome the problem, participants at the workshop pointed out that small-and-medium enterprises should be established in the large industrial estates away from residential areas.
The participants said yhe investors should be required to facilitate fire harzard prevention, environmental conservation, systematic removal of rubbish and disposal of sewage water.
The government should reclaim industrial land plots and sell them to only authentic investors.
Rules and regulations should be prescribed to prevent speculations.
There are 24 industrial zones running around Yangon. The estimated acres of all industrial zone are about 20,000. Only 3,562 indistries are currently operating.
It is estimated that 80 per cent industrial land transactions have fallen into the hands of property speculators, sources said.
The industrial zones running in Yangon are Mingaladon, Shwelinban, Dagon, Dagon (East), Hlinethaya-1,2,3,4,5,6 and 7, North Dagon, North Okkalapa, Shwepyitha-1,2,3,4 and 5, Thadukan, South Dagon-1,2, and 3, South Okkalapa and Thakayta.
According to the data released by the Ministry of Industry, there are 3,179 acres and 3,319 industries in Yangon East District, and 2,436 acres and 625 industries in Yangon North District.
The current price for one acre in industrial zone of Yangon ranges from US$588,235 (Ks 1,00 million) to US$2.9 million ( Ks 5,00 million). However, the price for one acre land in other townships is above average US$588,235 (Ks 100 million).
"The industrial lands are growing in price and so are condominium.
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