Fragrant to invest $300m in Myanmar

Fragrant Property has announced an investment of more than US$300 million (Bt8.8 billion) to expand its business in Myanmar.

The company has allocated an initial budget of about $40 million to the registration of two subsidiaries in that country, Myanmar Fragrant Development and Myanmar Fragrant, to undertake property business there, especially involving city planning, electric train systems and general utilities.

Chief executive officer James Duan said the company had offered two mega-projects to the Myanmar government. 

“We are in the discussion process with the government to draft those mega-projects in the future, including the development of utility systems in Yangon. The project includes the construction of a straight road from Shwedagon Pagoda to the seaport and to promote it as a landmark or walking street similar to those in countries in Europe, such as the Champs-Elysees in Paris,” he said. 

He added that the discussion with the government about the two investment projects would be finalised by the end of the year. 

The second project will be the development of a residential and office complex for foreign investors, especially from Thailand, Hong Kong, mainland China, and Asean countries. The project will be a 50-floor multipurpose building, which will include a shopping mall, a hotel and office space. After the project is developed, it will be sold, potentially to buyers from Singapore or Thailand, who will operate the complex’s mall and hotel.

Duan said the government’s decision to open the country was aimed at attracting Myanmar businesspeople investing abroad to return and bring capital back into the country. They will benefit from the exemption of corporate income tax for five years for investments in technology and other products supported by the government.

“The overall investment atmosphere in Myanmar is favourable and attracting strong interest from both domestic and foreign investors, especially from Thailand, Japan, China and Asean countries. 

“Thai investors, however, need to have direct contact with the officers of the Myanmar Embassy in Thailand or the Myanmar government so that they will know the investment regulations and to ensure that the investments are in line with the demand and requirements made by the Myanmar government,” he said.

He said land prices in Myanmar had been surging because of low ownership by the private sector, which accounts for only 25 per cent of the total land. About 75 per cent of land plots in Myanmar are owned by the government, including prime and high-potential locations as well as antique buildings. 

However, as one of the private investors interested in Myanmar, Fragrant Property wants to urge the government to evaluate land prices and set median prices for the investors.