Singapore's largest bus maker to build $30m facility in Myanmar

Production in the 16,000-sqm facility will begin in Q4 2018.

SC Auto announced its plans to set up a $30m facility in Yangon, Myanmar with the help of International Enterprise (IE) Singapore's facilitation.

Slated to begin production in Q4 2018, the 16,000-sqm facility will enable SC Auto to increase its production by four times, allowing it to meet the growing demands of both Myanmar and the region. This facility marks SC Auto’s first foray overseas after focusing operations in Singapore for over 20 years, and makes it the first foreign bus manufacturer in Myanmar.

For its Myanmar operations, SC Auto aims to produce over 100 buses in its first year and double its revenue. With the added international operations, manpower hires will increase to 600. SC Auto also plans to invest in robotic welding for this facility, yielding greater efficiency in the production process.

In Myanmar, demand for buses is high as they are the most common form of inter-city transport. The government has also been focusing efforts on the development of transport connectivity and will require transport infrastructure investment worth US$45 to US$60 billion by 2046. This, together with Myanmar’s economic growth and expanding trade links, would create demand for efficient and cost-effective transport solutions. Furthermore, manufacturing is viable in Myanmar given its relatively low labour costs.

SC Auto is also working with IE Singapore to scale up its business overseas, targeting regional markets such as Thailand and Vietnam, as well as Australia and Taiwan, by 2020.