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Annual World Bank Conference on Land and Poverty

Response to
Housing Needs
in Myanmar

March 17, 2016

Shigehiko Sugita

Deputy Director
Southeast Asia Division 4
Southeast Asia and Pacific Department
Japan International Cooperation Agency
Contents

1. Overview of Myanmar

2. Basic Data of Yangon City Development


- the Strategic Urban Development Plan of the Greater Yangon

3. Issues and Challenges in Housing sector


4. Recent Developments
- JICA experts - Advisors for Urban development and Housing policy

5. Way forward

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1. Overview of Myanmar
Population: 51.41 million people
(Population census in 2014)
Land: 677,000km2
(1.8times bigger than Japan)
GDP per capita: 868 USD
(FY2012/13, IMF)

Main Industry: Agriculture


Economic Growth Rate 6.4%
(FY2012/13, IMF)
[ 7 Region(s) ] GDP by Industires Primary Industry (42%)
1 Aye Yawar Dyi Secondary Industry(21%)
2 Sagain Third Industry(37%)
3 Thanyndari
4 Bago HDI:149 / 182(in 2011)
5 Magway Main countries to Export:
6 Mandalay 1. Thailand, 2. India, 3. Hong Kong
7 Yangon Main Countries to Import:
1. China, 2. Singapore, 3. Thailand
[ 7 states ] Main Export Goods:
1 Kachin Natural Gas, Beans, Gems, Timber, etc
2 Kaya Main Import Goods:
3 Karen Machines, Refine Oil, etc
4 Shan Foreign Direct Investment: Mainly on
5 Chin Natural resource sector (Fossil Oil / Gas,
6 Mon
Hydro Power, Mining, etc) (1: Thailand, 2:
7 Rakhain
China, 3: Hong Kong) 3
1. Overview of Myanmar
Comparison with Mekong Region
 Myanmar’s GDP is only 14% of Thailand, 33% of Vietnam
 Poorest GDP per capita in the Mekong Region
 The largest country in terms of land coverage
Country Myanmar Cambodia Laos Thailand Vietnam
Year 2014 2013 2012 2013 2013
Land (10,000km2) 67.7 18.1 24.0 51.4 32.9
Population (million) 51.4 14.7 6.5 67.0 89.7
GDP (100 million USD) 553 142 91 3,850 1,700
GDP per capita (USD) 868
Myanmar 993
Cambodia 1,349
Laos 5,647
Thailand 1,896
Vietnam
Pavement coverage(%) 12 6 14 98 48
Road
Total Length(km) 27,000 38,257 34,944 180,053 160,089
Air Passenger (1,000) 1,527 184 303 19,619 11,074
Air
International Flights 28,499 3,304 9,793 123,541 83,720
Safe Urban 75 81 72 99 99
Water
Access Average 71 61 57 98 94
Electrification (%) 26.0 17.2 69.3 85.8 95.0
Overall Power generation(GWh) 6,964 1,235 10,086 148,390 84,765
Power
Ratio of Transmission Loss(%) 26.7 10.6 12.0 5.9 9.6
Retail Price (US c/kwh) 2.49 20.0 6.5 10.04/9.32
Source: Ministry of Foreign Affairs, Japan
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5.3
1. Overview of Myanmar
Framework of Economic and Social Reform: FESR
(November, 2013)
■“People Centered Development”
■ Three Directions
 Stability in Macro Economy Former President Thein Sein
 Quick Wins (Comprehensive Growth)
 Sustainability (Sector/Structure Reform)
■ 10 Prioritized Sector Reform
①Finance/Taxation, ②Finance, ③Trade/Investment Reform,
④Private Investment, ⑤Health/Education, ⑥Food Security/
Agriculture, ⑦Governance/Transparency, ⑧ICT,
⑨Infrastructure, ⑩Governance/Institutions
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2. Basic Data of Yangon City Development

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2. Basic Data of Yangon City Development
Population (10,000 people)
1,400 11.73 million
1,200
1,000
800
600 5.57 million
400
2.47 million*
200
0
1993 2011 2040(予測)
2040
*1993: Data of Yangon city Source: SUDP, JICA 2013

Population Increase in the Greater Yangon

 Capital city until 2006

1.5% of national land


12% of population
Location Map
22% of domestic economy*
Yangon city 784 km2 ※ Account of Yangon Region Source: NSDB 2010-2011

Greater Yangon 1,500km2 7


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2. Basic Data of Yangon City Development

Yangon is “Commercial and Industrial City”


 That of Yangon Region was composed of the processing and manufacturing
sector (37%); and the services sector (24%) ; and agriculture sector(8%).

Industrial Structure
in Myanmar and
Yangon Region
2. Basic Data of Yangon City Development
Land use in
2002 Transition of Land Use (2002⇒2012)
Source: SUDP. JICA 2013

(km2) 2002 2012


900 -26
800
700
600
500
400 +60
300 -37 +3
200 -6
100 +2 +1
0

• Decrease of Farm and Green, Increase of urban area


Land Use in • Needs of proper land use management to preserve
2012 urban green and amenity
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2. Basic Data of Yangon City Development
30% Source: SUDP, JICA 2013

20% Age Band Family Size: 4.3 per family


Ratio

10% Under 20 years: 25%


0% Over 60 years: 13%

Year old
25% Monthly Income Band Volume Zone (60%) :
20%
15% 100,000 -300,000 kyats/month
10% Kyats per month Average household expenditure :
5%
0% 216,000 kyats/month
Below…
25,000 ~…
50,001 ~…
75,001 ~…

Above…
100,001 ~…
150,001 ~…
200,001 ~…
300,001 ~…
400,001 ~…
500,001 ~…
600,001 ~…
700,001 ~…
800,001 ~…
900,001 ~…
Education Band
0% 20% 40% 60% 80% 100%
0.6%
男性
Male 12.2% 23.0% 32.0% 13.6% 17.5% 1.1%
0.3%
女性
Female 16.8% 24.2% 26.9% 10.0% 20.8% 1.1%
幼稚園
Kinder Elemen
小学校 Jr HS
中学校 高校HS Vocational
専門学校 Under
大学 Gradu
大学院
garten tary gradu
ate
ate
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2. Basic Data of Yangon City Development
Housing

Individual housing

Apartments in Central Business District


80% is individual housing

High Income group lives in


apartments and building complex
Hi-rise building 出典:ヤンゴン都市圏世帯訪問調査(2012)
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2. Basic Data of Yangon City Development
Over 5
Housing 5 rooms
4 room 1.6%
rooms
30% 6.5%
0.9%
 50% of housing is
20% 3 One 251 - 750 sq ft
room
10% rooms
30.8% (23 - 70m2)
18.1%
0%
 73% of Housing is
2 rooms
42.1% 1-2 room(s)
Size of Housing (sq feet) (250 sq feet≒23.2m2)
Number of Rooms
in each household

Water
Toilet, None
Vault 5.8% 0.6%
汲取り,
Toilet
11.0%
Water
注水式
Flush
トイレ,
Toilet
Clean water 82.6%
access: 40%
Peri-urban housing
Toilet facilities
Clean-water access coverage 12
Source: SUDP. JICA 2013
2. Basic Data of Yangon City Development
 Public Bus  Yangon Circular Railway  Yangon BRT
 One Ride - 0.05-0.2  One Ride - 0.2 USD/person  One Ride - 0.3 USD
USD/person  3 hrs (Ave.15km/h)  Started in Feb 2016
 Some air-con car  46.0 km (circle line)
 88% usage  Only 7% usage

Source: YUTRA, JICA 2014 Source: YUTRA, JICA 2014


2. Basic Data of Yangon City Development
Development Vision Sub-center with Green Isle System

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2. Housing Issue in Yangon

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2. Housing Issue in Yangon

Housing Supply – 1 million units in 20 years


1. Reconstruction of Public Rental Housing (sale/ rent)
2. Construction of New Town (sale)
3. Urban Renewal Project
Forecast of population in Yangon

High case

Middle case

Law case

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2. Housing Issue in Yangon

 Stakeholders
State
 Department of Urban and Housing Development(DUHD),
Ministry of Construction (MOC)
Region
 Yangon City Development Committee (YCDC)
Others
 National Housing Board (NHB) (est. 1951)
 Construction Housing Development Bank (CHDB)
(est. 2013)
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2. Housing Issue in Yangon

Courtesy : New Light of Myanmar (Mar 14, 2016)

Source: DUHD, MOC

Courtesy: Myanmar Times


2. Housing Issue in Yangon

Source: DUHD, MOC


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2. Housing Issue in Yangon

Source: DUHD, MOC

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Source: SUDP, JICA 2013
2. Housing Issue in Yangon

MOC’s housing supply target


15,000 units(2014) → 30,000 units (2015)

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2. Housing Issue in Yangon

 Relocation issue

- Registration
- Compensation
 Ownership Issue
- sub-letting
 Purchase of private land
- land price evaluation http://www.mmtimes.com/index.php/national-
news/yangon/19000-unofficial-hlaing-tharyar-renters-
fear-looming-eviction.html
2. Housing Issue in Yangon

 Finance Issue
- Insufficient Housing Loan scheme
Establishment of Construction Housing
Development Bank (CHDB)
Fixed interest rate: 12%
Down payment: 30%
Interest rate: 12%
Repayment: 8 years
Default period: 4 month
- under experienced capability of examination

- Insufficient Housing Loan fund http://www.mmtimes.com/index.php/business/property-


news/19167-low-cost-apartments-in-yangon-s-yuzana-
insufficient amount of fund against demand housing-to-go-on-sale.html
unattractive for foreign direct investment
un-revolving fund (pre-fixed rental rate for low
cost housing – 300,000 kyats per month)
3. Housing Issue to be addressed

 Insufficient laws and regulations


Depends on old legislation system
 New Building Codes / Condominium law (2016), Housing Development Law(2016)
 Needs of Housing Master plan
 Strengthening the coordination among Union & Region
 Refining the responsibility of Union and Regional government
 Regulations on compensation scheme

 Insufficient financial scheme


Lack of financial source
 Invitation of private fund/foreign direct fund
 Enhancement of banking system
 Rule and regulations to protect both lender and borrower

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3. Housing Issue to be addressed

 Insufficient function and capacity


Over rapping function among Union level and State level
Focusing on Supply, need attention to maintenance of existing housings
 Involvement of communities/locals for maintenance
 Public regulation systems, such as laws for housing- and urban planning and for
development

Quality housing provision


Different floor space in housing, implemented by Region and State Governments
 Housing standard for public housing
Insufficient housing industry and techniques
 Revised Building Codes (2014)
 Construction material guideline

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4. Recent Development Case
 Urban Development and Management
 For effective land use, there is a need to allow a special incentive in land
use, namely higher building height limit, only when a development
activity satisfies all required conditions under the building application
/permission procedure by YCDC.
 Conditions f0r approval
recommendable to allow
a special incentive
may include
open space
parking lots
setback
4. Recent Development Case
Compensation Compensation
Number of
(Temporary (Relocation)
Units
House)

Same Location 184 150,000 MMK Contractor’s


(before (2 years) bearing cost
construction)
Same Location 25 150,000 MMK Contractor’s
(after construction) (1.5 years) bearing cost
Other Location 14 50,000MMK Contractor’s
(2 years) bearing cost

Former Building After Reconstruction

Stories 7 buildings, 2 buildings


each 4 stories each 12 stories
(8 unit/ floor) (112 units for relocated
families – Lv 2 -5)
Floor Area / 462 sq ft, 456 sq ft, 439 600 sq ft
unit sq.ft, 427 sq.ft
Facilities No elevator Elevator,
Flush toilet,
Parking (Level 0, -1)
Rent fee No rent unit Rent for New residents:
7,500 MMK/unit, month
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4. Recent Development Case

•National Policy for Urban Planning


•Laws/Regulations for Urban Planning, Housing
Union Level Development etc., and Building Codes
•National Regional Development Planning
Coordination, Inspection
and Consultation

•Region/State Policy for Urban Planning


States or •Development Procedure & Regulations
Region Level •Urban/Infrastructure Plans & Projects
Coordination, Inspection
and Consultation
•Implementing Urban/Infrastructure Plans &
Townships or Projects, Land Uses
Cities Level •Urban Development Regulation
• Housing Development
4. Recent Development Case
The State Constitution promulgated in May 2011. Some of the
provisions in the State Constitution are related to the urban
planning and land management.
The State nor the Region has enacted Town Planning Law or
any laws to the same effect yet. Preparation needs to be
accelerated.
MOC is preparing what will be called uniform Building Code,
which is to supplement the architectural control from the
safety and urban planning aspects.
There are 24 by-laws in effect in YCDC which had been
enacted. Until town planning law is enacted, by-laws may be
used to regulate urban development untill a new law comes
into effect.
4. Recent Development Case

 Introduction of Zoning
System
5. Various Aspects of Yangon’s Townscape
Administrative buildings Religious buildings Ethnic area
Colonial style buildings Buddhism, Christianity, Moslem, etc. China town, Indian town etc.

Potential for Cultural and Tourism Resource


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5. Various Aspects of Yangon’s Townscape


Conservation and utilization of Heritage Buildings

Source:DHSHD

Heritage conservation area Conservation/utilization of heritage


(Under consideration) buildings: Eg. Museum, International organizations.

For a comprehensive conservation / utilization plan


Thank you

■ Reports are available in the JICA library website


http://libportal.jica.go.jp/fmi/xsl/library/public/Index.html

Contacts:
Shigehiko Sugita
E-mail:sugita.shigehiko@jica.go.jp