Why Yangon, Myanmar may be the next big thing among Singaporean investors

But risks may linger.

According to Jones Lang Lasalle, Myanmar, formerly known as Burma, is opening up after 60 years of self-imposed isolation and international corporates are eager to capitalise on new opportunities, such as offering the country's 60 million people goods and services advanced economies take for granted, like mobile phones and bank accounts. 

"Once the capital of Myanmar, Yangon remains as the commercial centre and main transit hub of the country. Formerly a small fishing village surrounding the prominent Shwedagon Pagoda, the city was transformed during colonial rule under the British from 1824 to 1948," said Jones Lang LaSalle.

While Yangon's two largest and mature source markets for the past years have been neigbouring Thailand and China, Singapore may also benefit in terms of investments and other opportunities. In tourism, for example, Singapore has seven direct flights per week to Yangion Mingaladon Airport but the lack of direct flights from other countries outside the SouthEast Asia forces vistors to transit in hubs like Singapore.

The government is also said to be drawing expertise from urban planners in Singapore to create a city with better public transportation infrastructure. Jones Lang LaSalle noted that aside from Chinese and Thai firms, Singaporean companies conducted business in Myanmar when the country was still subject to economic sanctions and are more accustomed to the current legal framework and challenges compared to new entrants.

However, Jones Lang LaSalle noted that foreign developers entering the market without local partners will face greater challenges."

"The opportunites in real estate are particularly attractive with a sever shortage of supply in the office, hotel, serviced apartment, residential, and retail sectors.

In addition, companies in mining, energy, telecommunications, banking, real estate, legal, healthcare, and hospitality are expected to profit the most," said Jones Lang LaSalle.