Myanmar's new Industrial Zone Law will even the playing field when it comes to the proper use of land, which could potentially open the door for more foreign investment, Colliers International says.

Enacted on May 26, the new law aims to address land speculation and improve environmental governance of more than 60 industrial zones across the country through the creation a Union-level central committee to regulate the zones on top of the existing regional and management committees.

At a glance: 

• Myanmar's Assembly of the Union has enacted a new Industrial Zone Law designed to address land speculation.
• Under the new law, investors are not only banned from occupying plots for speculation purposes but also legally liable for improper waste disposal. 
• Colliers International believes the new regulations could pave the way for more regional and foreign investment.

Under the regulations, investors are not only banned from occupying plots for speculation purposes but also legally liable for “failing to make (their) own arrangements for waste disposal” if the zone does not already have a collective system in place.

Colliers International Assistant Research Manager Ko Hpone Myint Thu said the nature of land investment in some areas of Myanmar needed to change.

"Between 1991 and 2016, there were around 2 million hectares of land transactions in the country," he said.

"Yet the use of industrial use of land has been relatively minimal compared to what was allocated throughout the period.

"We expect the industrial zone law to serve as a counterbalance in restoring the efficient and strategic  utilization of land across the country.

"Perhaps this law may also facilitate broader access to land for regional and international investors." 

Sources: Myanmar Times

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