Construction Ministry, Korea Land & Housing Corporation to cooperate in policy sharing, pilot projects in housing sector
MINISTRY of Construction signed a MoU with LH (Korea Land and Housing Corporation) recently on cooperation in the housing and urban areas to share the technologies and experiences of LH’s residential and urban infrastructure sector in promoting urban and sustainable economic growth of Myanmar, according to Ministry of Construction.
The signing came at the visit of Union Minister for Construction U Han Zaw from 1 to 4 July to South Korea.
Under the MOU, the two agencies agreed to push for policy sharing and pilot projects in related areas, such as housing, urban and industrial complexes, and to promote continuous information and human exchanges in those areas, while LH plans to secure implementation capabilities for the MOU by inviting Myanmar officials, holding conferences and dispatching experts.
The Union Minister for Construction also visited KB Kookmin Bank’s headquarters and met with the CEO of KB Kookmin Bank to discuss ways to cooperate with each other on housing financing.
At the meeting, KB Kookmin Bank CEOsaid, “KB has provided various cooperation and support, including a housing finance policy workshop, with Myanmar’s Ministry of Construction for the past five years, and will provide active support for the successful settlement of the country’s housing finance policy.”
“KB will expand our banking business in Myanmar to acquire bank licenses and strengthen our partnership with Myanmar’s Ministry of Construction in the housing and infrastructure finance sectors, KB Kookmin Bank’s biggest strength, in order to successfully pursue various projects promoted by the South Korean government, such as the KMICproject and other regional development projects,” he said.
Current Status of Housing Provision in Myanmar
According to a report released by KB during a housing policy workshop with the Ministry of Construction, Myanmar has experienced remarkable economic growth over recent years, with an average growth rate of 7~9% per annum.
The robust economic growth is expected to bring about rapid urban growth, and Myanmar’s housing sector is struggling to cope with rapid urbanization, internal migration, and new demand arising from recent economic growth, particularly in the larger metropolitan districts of Yangon.
The number of households is expected to reach 15.68 million in 2040, according to the Ministry of Construction.
Hence, there will be need for additional 4.8 million housing units. From the same data source, there are 1.58 million housing units in Yangon and the number of households is expected to reach 2.65 million housing units in the city. Over one million new housing units will be required by 2040.
In response to the meeting the imminent demand for housing, the Government of Myanmar aims to develop 1 million new housing units by 2030.DUHD planned to supply 20% of total units, and among these 90% is for low income people and 10% for lower middle income people.
Under the plan, DUHD has built its own Affordable House and Low-cost houses in order to provide them to the people of Myanmar, including Hlaingthaya, Shwepyitha, Dagon,Seikan and Insein Township.
Also, Yangon Regional Government will start building housing projects for illegal squatters on government-owned land in six Yangon townships.