Thailand Poised To Be Hub For Investors In Infrastructure-Poor Myanmar

[webfact]

Thailand poised to be hub for investors in infrastructure-poor Myanmar

Somluck Srimalee

The Nation

BANGKOK: -- Thailand has potential to be a regional hub for international companies interested in expanding their investment in Myanmar, property agency Colliers International Thailand says, given the Kingdom's proximity to that country that still lacks sufficient infrastructure of its own.

Associate director Tony Picon said Myanmar's government planned to approve new investment laws this month or in August that will encourage more foreign interests to expand into the country, which has abundant natural resources, especially oil, gas and minerals. However, unlike Thailand, Myanmar lacks sufficient serviced apartments, hotels, logistics systems and information technology to support the large number of investors wanting to travel there to examine its business potential.

For example, in Yangon, the country's commercial centre, there is only 60,000 square metres of office space available for rent, priced at about US$60 (Bt1,890) per square metre per month. By comparison, Grade A office buildings in Bangkok offer monthly rentals of Bt800-Bt1,000 per square metre.

"If [a large] number of investors expand into Yangon and open new offices, monthly rentals may increase to $100 per square metre," Picon said.

As for serviced apartments, Yangon has only six such buildings.

Meanwhile, land suitable for developing industrial estates in Myanmar is still limited, and prices are higher than in other countries in this region.

Given this lack of infrastructure in Myanmar, Picon believes that Thailand will benefit from the new investment in that country because businesses from North America, Europe and Asia will open regional offices here because it is close and has good facilities.

-- The Nation 2012-07-04

[LomSak27]

Hub-Mania strikes again

[Reasonableman]

Priceless

[noitom]

He's bullish on Thailand. Thailand is poising, they're promoting, and they are hubbing.

[jaltsc]

Lots of hubs going nowhere in Thailand. When are they going to build the spokes, wheels and the rest of the wagon to go along with all those hubs, and start moving in some useful direction?

[chotthee]

It is a fact that Burma is a ultra poor country as far back as history did record.

Go watch the "King and I" and you will learn that Burma (now no more as Burma is rename, and became a republic) must constantly provide Siam (now also rename), slaves as gifts, a kind of peace offering. Tuptim (played by Rita Moreno) is one of them.

[thunder30101]

Seems thailand has forgot about that little country to the north called china who have an excellent track record of exporting construction projects to garner favor amongst foreign countries in exchange for resources.

[Unkomoncents]

Thailand will become exactly such a hub...until foreign investors are reminded of the general corruption, incompetence, and meddling that Thailand and Thais bring to the table every time. Then those foreign investors will simply set up the infrastructure that they need in Yangon and Thailand will be used periodically for its hotel and meeting rooms and nothing more. It's nearly guaranteed that Thailand will try to exploit the situation and siphon off as much ill-gotten money as they can. History repeats itself in the Kingdom. Thailand steps in. Everyone sees the potential. Projects get set up. And then the pervasive venality begins. Soon enough, interested parties are looking for ways to sidestep Thailand altogether. That's why hotel rooms are consistently well-priced. Relative to Hong Kong and Singapore, there is tons of space but very little in the way of big business. No multinationals base their operations in Thailand. Companies fly in to Bangkok for conferences and little fun and then go on to the real epicenters of enterprise in Asia.

To find a perfect microcosm of Thailand and the country's problems, just look to Phuket: a beautiful island which, a little more than a decade ago, was poised to become a yachting and resort mecca. Now years of mismanagement and corruption have turned the island into a crime bonanza and the yachting world has moved on to greener pastures...never to return. The best part about this is that Thailand and Thais haven't even noticed. They're still trying to plug their little crime-infested paradise as if it really were heaven on earth.

Edited July 4, 2012 by Unkomoncents

[chotthee]

Seems thailand has forgot about that little country to the north called china who have an excellent track record of exporting construction projects to garner favor amongst foreign countries in exchange for resources.

China is far from Burma.

You need to travel all the way to Singapore, make a U turn and all the way back to reach Burma.

However, Thailand is just next door, and have land border access.

[Joel Barlow]

Thailand - hub of hubs!

[Reasonableman]

[voodoomagicman]

Thailand.......living in Hubble.Tha

[belg]

is it not time for THAILAND to change their rules? so rich Thais will buy up everything (land, etc...) from their neighboor to make big speculations and earn lot's of money, but farangs with family here living 5, 10, 20 years + cannot even own 1 rai of THAIland

[LuckyLew]

Thailand poised to be hub for countries left behind as Myanmar takes over south east asia as #1 tourist destination

[Reasonableman]

The land is being preserved for future generations. WHOSE future generations is never made clear. Just be sure its not YOURS, even if your family is Thai.

[thunder30101]

China is far from burma ??? HaHaHaHaHa sorry you missed out on geography in school, Africa and Central-South America are much farther away than burma and the chinese own those continents in construction projects. When I first whet to laos years ago there was basically only one decent paved road in the country, along came the chinese and within two years 3 new full length paved roads were finished right up to thailands border allowing massive movement of goods and fast travel times. By the way who do you think is deforesting and mining northern burma at this very moment ? In the coming years china will build pipelines for all those gas reserves in burma and thailand being dependant on them for gas will be in big trouble.

[chooka]

It is a fact that Burma is a ultra poor country as far back as history did record.

Go watch the "King and I" and you will learn that Burma (now no more as Burma is rename, and became a republic) must constantly provide Siam (now also rename), slaves as gifts, a kind of peace offering. Tuptim (played by Rita Moreno) is one of them.

Hollywood movies, yes should be shown in all Thai schools as educational tools I think people could learn more from text books than fictional movies.

[Lannatyne]

I think India has more chance of being the main conduit into Burma.

[Lifer]

Anyone else tired of hub reports? Hub of this. Hub of that. Hub of nothing!

[harrry]

Seems thailand has forgot about that little country to the north called china who have an excellent track record of exporting construction projects to garner favor amongst foreign countries in exchange for resources.

China is far from Burma.

You need to travel all the way to Singapore, make a U turn and all the way back to reach Burma.

However, Thailand is just next door, and have land border access.

How about looking at a map again. Burma (Myanmar) does indeed have direct road access to China.

[seminomadic]

YES! Thailand will be a hub for this, and I do mean *THE* hub for the entire 18 months it lasts before the sufficient office/residential space is erected in Yangon.

2012 - THE YEAR OF SPEAKING ENGLISH

2013 - THE YEAR OF THAILAND BEING THE MYANMAR HUB AS CONCERNS RENTAL FACILITIES FOR FOREIGN INVESTORS INTERESTED IN MYANMAR AND SO ON AND SO FORTH

GO GO GO THAI MEDIA OH YES

[Bagwan]

Lots of hubs going nowhere in Thailand. When are they going to build the spokes, wheels and the rest of the wagon to go along with all those hubs, and start moving in some useful direction?

When the Japanese provide the money?

[Thaddeus]

Associate director Tony Picon said Myanmar's government planned to approve new investment laws this month or in August that will encourage more foreign interests to expand into the country, which has abundant natural resources, especially oil, gas and minerals. However, unlike Thailand, Myanmar lacks sufficient serviced apartments, hotels, logistics systems and information technology to support the large number of investors wanting to travel there to examine its business potential.

Serviced apartments, hotels and logistics systems can be created in quite a short space of time.

Oil, gas and minerals take millions of years.

Wait for some Thai science minister to say that Thailand will create all the oil, gas and minerals it needs to attract foreign investors, within six months.

[bangkoksimon]

hub hub horray

[ratcatcher]

It is a fact that Burma is a ultra poor country as far back as history did record.

Go watch the "King and I" and you will learn that Burma (now no more as Burma is rename, and became a republic) must constantly provide Siam (now also rename), slaves as gifts, a kind of peace offering. Tuptim (played by Rita Moreno) is one of them.

I really think you need to take a moment to look at a map to see just where Burma (Myanmar) is located, secondly, the British, as rapacious as they were in empire building around the globe, could see the wealth and potential in this eastern land adjacent to their "Jewel in the Crown" India.

Ultra poor I think is not quite the way I would describe it.

Burma is a resource rich country, blessed with vast forests of marketable timber (teak,ironwood), gems, oil and gas.

The Burmese economy however is one of the least developed in the world.

Once a reliable infrastructure is in place, it won't be too many years before Myanmar's full potential is realized.

Hopefully,they won't be totally raped by the Chinese, Indians, Thais and other 'interested' parties,in order to leave something for the long suffering Burmese people..

Thailand should be worried.

[Kalbo]

Seems thailand has forgot about that little country to the north called china who have an excellent track record of exporting construction projects to garner favor amongst foreign countries in exchange for resources.

China is far from Burma.

You need to travel all the way to Singapore, make a U turn and all the way back to reach Burma.

However, Thailand is just next door, and have land border access.

Did you go to school ?Are you being sarcastic or do you really think that China is far from Burma ? China and Burma also share a land border, and it's a lot longer than the border with Vietnam or Cambodia. And why are you mentioning Singapore ?

[animatic]

So they buy an apartment building and make it serviced. If you are investing, there are many very nice hotels in you can stay till you make some decisions about what properties to renovate to house your staff. No need of some sort of "Green Zone" or to do it hours of air time away.

Anyone with deep pockets can easily find, or make, themselves pleasant accommodations in Yangon. This seems more likely encouraging a way for Thailand interests to skim some off the coming Myanmar slice of pie before it even gets there. The banking situation there is more problematic than housing. But no doubt Thailand interests would love a skim on that business too.

Edited July 4, 2012 by animatic

[animatic]

Seems thailand has forgot about that little country to the north called china who have an excellent track record of exporting construction projects to garner favor amongst foreign countries in exchange for resources.

China is far from Burma.

You need to travel all the way to Singapore, make a U turn and all the way back to reach Burma.

However, Thailand is just next door, and have land border access.

Did you go to school ?Are you being sarcastic or do you really think that China is far from Burma ? China and Burma also share a land border, and it's a lot longer than the border with Vietnam or Cambodia. And why are you mentioning Singapore ?

This comment definitely gave me pause,

having been in Northern Myanmar and see the border crossing with China.

Besides you only need to... look at a map.

[samjaidee]

Seems thailand has forgot about that little country to the north called china who have an excellent track record of exporting construction projects to garner favor amongst foreign countries in exchange for resources.

China is far from Burma.

You need to travel all the way to Singapore, make a U turn and all the way back to reach Burma.

However, Thailand is just next door, and have land border access.

You must be Thai, with your non-existent knowledge of geography.

Myanmar's border with China is 2,204km in length. hat is only 196km short that its border with Thailand.

Maybe you should go back to school before posting again.

[LeeThayer]

Lots of hubs going nowhere in Thailand. When are they going to build the spokes, wheels and the rest of the wagon to go along with all those hubs, and start moving in some useful direction?

Probably the best comment