Construction in Myanmar – Key Trends and Opportunities to 2025 (H1 2021)

Myanmar’s construction industry is expected to shrink by 7.7% in real terms in 2021, down from a marginal decline of 0.5% in 2020. The industry’s output in 2020 was affected by the outbreak of the coronavirus disease (COVID-19) pandemic, as well as its impact on construction activities due to supply chain disruptions and labor shortages. In 2021, the weakness in the industry is expected to be further exacerbated by the ongoing political crisis and its impact on foreign investment and construction progress.

According to the Myanmar Construction Entrepreneurs Association (MCEA), the country’s construction industry – which employs over 1.4 million workers, including daily wage earners – is estimated to have lost 30-50% of its total workforce since the military seized control in February 2021. The widespread social unrest and violent crackdown on protestors that followed will likely continue to discourage foreign investment. As a result, foreign investors have already suspended projects worth more than MMK9.4 trillion (US$6 billion) since February; these includes projects in the energy, industrial, and commercial sectors.

So far, sanctions have been targeted at coup participants. This is unlikely to impact the industry, although effects are likely to be felt if these sanctions were to be extended to the wider economy. The European Union (EU), which imposed sanctions in March 2021, stated that while it aims to ensure that measures do not have an adverse effect on the Burmese public, it will continue to review additional restrictive measures against the economic entities in control of the government. In March 2021, the World Bank and the Asian Development Bank (ADB) temporarily froze funds to Myanmar, which will affect the progress on projects dependent on external funding.

GlobalData expects the industry to record growth in 2022 and register an annual average growth rate of 5.9% during 2022-2025, supported by investments in transport infrastructure, electricity, industrial parks, and housing infrastructure projects. The government’s aim to increase nationwide access to the national power grid from 58% in 2020 to 100% by 2030 will support investment in the country’s electricity infrastructure. Despite this support, however, real output growth is not expected to surpass its pre-pandemic levels until 2024 at the earliest.

This report provides detailed market analysis, information and insights into Myanmar’s construction industry, including –

– Myanmar’s construction industry's growth prospects by market, project type and construction activity

– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Myanmar’s construction industry

– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Myanmar. It provides –

– Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Myanmar, featuring details of key growth drivers.

– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.

– Listings of major projects, in addition to details of leading contractors and consultants

Reasons to buy

– Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.

– Assess market growth potential at a micro-level with over 600 time-series data forecasts.

– Understand the latest industry and market trends.

– Formulate and validate strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

7.4 GlobalData Construction

Contact Us

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: Myanmar, Key Economic Indicators

Table 3: Myanmar, Commercial Construction Output by Project Type (real % change), 2016-2025

Table 4: Myanmar, Top Commercial Construction Projects by Value

Table 5: Myanmar, Industrial Construction Output by Project Type (real % change), 2016-2025

Table 6: Myanmar, Top Industrial Construction Projects by Value

Table 7: Myanmar, Infrastructure Construction Output by Project Type (real % change), 2016-2025

Table 8: Myanmar, Top Infrastructure Construction Projects by Value

Table 9: Myanmar, Energy and Utilities Construction Output by Project Type (Real % change), 2016-2025

Table 10: Myanmar, Top Energy and Utilities Construction Projects by Value

Table 11: Myanmar, Institutional Construction Output by Project Type (real % change), 2016-2025

Table 12: Myanmar, Top Institutional Construction Projects by Value

Table 13: Myanmar, Residential Construction Output by Project Type (real % change), 2016-2025

Table 14: Myanmar, Top Residential Construction Projects by Value

Table 15: Myanmar, Key Contractors

Table 16: Myanmar, Key Consultants

Table 17: Myanmar, Construction Output Value (Real, US$ Million)

Table 18: Myanmar, Construction Output Value (Nominal, MMK Billion)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: South and South-East Asia, Construction Output (real % change), 2020 and 2021

Figure 2: Myanmar, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: Myanmar, COVID-19 Confirmed Cases

Figure 4: Myanmar, Risk Summary

Figure 5: Myanmar, Risk Regional Comparison

Figure 6: Myanmar, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2016-2025

Figure 7: Myanmar, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 8: Myanmar, Total Foreign Direct Investment (US$ Million), % Change YoY

Figure 9: Myanmar, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 10: Myanmar, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 11: Myanmar, International Tourist Arrivals, In Thousands, % Change YoY

Figure 12: Myanmar, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 13: Myanmar, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 14: Myanmar, Manufacturing Foreign Investment (US$ Million), % Change YoY

Figure 15: Myanmar, Total Exports, In US$ Million, % Change YoY

Figure 16: Myanmar, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 17: Myanmar, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 18: Myanmar, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 19: Myanmar, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 20: Myanmar, Electricity Generation and Sales, In Million kwh

Figure 21: Myanmar, Crude oil and Natural Gas Production, % Change YoY

Figure 22: Myanmar, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 23: Myanmar, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 24: Myanmar, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 25: Myanmar, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 26: Myanmar, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 27: Myanmar, Headquarters of Key Consultants (% of Total Project Pipeline)

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