From the first object we pick up on opening our eyes every morning, to the last button we switch off at night, plastic is the material we touch and see all around us. Plastic as a material, has become an essential part of modern life. Yet there is increasing focus on the plastic menace, and the threat to life on planet earth. 

It is not unusual for man to create things that eventually end up threatening his own survival. Starting out as a convenient, safe, easy to use, unbreakable though totally malleable, durable material, plastic was the big invention of the 19^th century. A chemical compound, plastic is a polymeric material that can be shaped and molded by applying heat into myriad shapes and products, that are lightweight and yet not easy to break. Its plasticity apart, plastic is tough and transparent, with low density and low electric conductivity. Its usability extends from bags and bottles to machine parts, equipment and even textiles.

In simple terms plastics are chains of light molecules linked together. These chains are termed polymers, and come in forms like polyethylene, polypropylene, polystyrene and so on. Easy to manufacture at low costs, they are waterproof and not easily breakable, even being resistant to corrosion and chemicals.

The Plastic story – how it all began

The very first known plastics come from nature, in the form of rubber, which has all the properties that plastic is known for. Plastic is derived from natural materials like oil, natural gas, coal, plants and minerals. The first synthetic plastics ever made, though,

Plastic pollution has impacted 40% of existing marine species. According to the National Geographic magazine, nearly 9 million tons of plastic flows into oceans annually from the coastal regions.

were made from cellulose, a material found in trees and plants. When heated and mixed with certain chemicals, cellulose yielded a highly durable material that could be put to numerous uses. It was also easy to make plastic out of hydrocarbons, found in oil, natural gas and coal. 

The first fully synthetic plastic was invented in 1907,and made without using any natural raw material, it was called bakelite. The onset of World War II saw plastic being used to make lightweight airplane parts and nylon parachutes.

It facilitated preserving scarce natural resources, and plastic being easy to mass produce, became the preferred raw material whose production increased by 300%. Plastic became the winning material across the globe, replacing steel in cars, for lighter parts in machines and airplanes, wood for furniture and glass and paper for packaging. Plastic is cheap, and from its earliest days, it was used to make things that we did not wish to keep for long. Soon it got the prefix, ‘disposable’, meaning use and throw. Thus, it helped overcome the limitations of glass, iron and wood, and helped revolutionize the medical sector. It helped save fuel costs as machines and aircrafts became lighter, preserve the freshness of food by providing a fine transparent wrap to over, create toys for children, film rolls and prints, help transport drinking water to remote corners of the earth, and spare wildlife that was poached for ivory and tortoise shells.

From boon to menace

Plastic was created for a good cause, a substitute for scarce natural resources, to facilitate life and activity, not disrupt and threaten it. It was a boon that should have stayed within limits, but its production was unstoppable and usage increases far beyond the need.

As plastic surrounded us in every possible shape and form, it gradually came to be perceived as a cheap, inferior material of poor quality. Its mass production also meant that its waste began to pile up and it first cropped up as an environmental issue in the 1960s when the first plastic waste was found in oceans.  Plastic seems so easy to dispose of, takes less space, and is lightweight. But the abundance of plastic has made its waste also reach alarming proportions. It is non-biodegradable and will last forever in the environment (it takes 500 years for plastic to degenerate), and will keep increasing, since very little can be recycled, most of it being single use plastic. The additives that go into making plastic are harmful for all life, and the toxic chemicals leeched out of plastic end up in the human blood stream and body tissue, causing disease.

The plastic bag touted as the big find of the 1970s, has become the biggest menace, with 1 trillion bags produced annually, and almost a million bags used per minute. The convenience of carrying disposable water bottles, Styrofoam cups, glasses and straws, have only added to the colossal plastic piles. We carelessly throw such bottles etc, little realizing how it is adding up – some 15,000 water bottles are discarded into bins every minute globally. This accumulation of plastic products that float in streams, cover vast areas of land, end up adversely affecting life and habitats on the planet and has come to be called plastic pollution.

Plastic pollution has impacted 40% of existing marine species. According to the National Geographic magazine, nearly 9 million tons of plastic flows into oceans annually from the coastal regions. In urban areas, overflowing drains clogged with plastic, heaps of garbage in which plastic is conspicuous, have become sights we have grown to ignore, little realizing our own contribution to the mess. Landfills are seen on the outskirts of cities, beaches have corners where the piles seem to be constantly rising, and sometimes when the tide rises higher, it sweeps away some of the plastic into the ocean, which then mistaken for food, gets consumed by marine creatures, causing them a painful death when their digestive tract gets blocked.  

The growth of plastic in all forms has far outstripped the ability of the waste management industry to dispose it of, without harming the environment. This is particularly true in the rapidly growing Asian countries where waste management and awareness about problems posed by plastic is in its nascent stages and largely ignored.

Myanmar is also seeing increasing levels of plastic pollution, where an estimated 200 tons of waste enters waterways everyday. Attempts are being made by grassroots organizations to educate the people about minimizing plastic waste, and help people make small changes that will have a beneficiary long term impact.

The way forward – start small, keep plastic free homes

P

lastic is here to stay, more for its practical uses, and for making things easier. Using it responsibly, is in our hands though. If bio-degrading solutions could be found, plastic would become similar to the organic waste, and focusing on recyclable plastic would help in limiting waste quantities, and prevent it from reaching oceans and water bodies, threatening marine life and even polluting the food chain.

Only 18% of plastic is recycled, and plastic bottles remain the most used. Recycling reduces the need for producing more quantities of plastic and the existing plastic gets used rather than going in to landfills and waterbodies. The first recycling mill accepted residential plastic in 1972, and since then plastics have been segregated and sent to such mills that are now seen in every part of the world. Ideally, the waste at one stage must become a resource for the next.

The toughest issue is finding alternate solutions to plastic. Till then, we can take a few small steps, by not buying more plastic, what is discarded must not be replaced with more plastic, and make conscious changes in our daily life, what we buy, how we use and how we throw. We must stop accepting plastic bags from super markets, instead carry our own reusable bags, made of paper or cloth; replace all our plastic containers with those of glass or steel, never get take-away single use plastic boxes, minimize the use of cling film and Ziploc bags, avoid microwaveable plastics, and use only glass bottles for water and for storing other things. A plastic free kitchen would actually be a dream, but one cannot change the plastic used to make some of the gadgets we use. It will also help if we buy natural, locally produced unpackaged soaps, buy shampoos in glass bottles and oil in tin containers. With none of these to throw, our trash cans will be lighter too. We need to change our mindset towards plastic. In Myanmar, as early as 2013, it was heartening to see the famed Sharky’s Restaurant and Deli, pack foodstuff in carry bags made out of newspaper. Retailers are trying to do their bit to reduce the plastic bag menace. It is estimated that an average of 4 plastic bags per person per day get used in Myanmar. Citymart, the leading supermarket, marks the last Tuesday of the month as ‘no plastic bags day’. It is heartening to see some carry their own reusable bags to bring back their purchases. Paper bags are a good substitute but has its flipside too. While paper takes resources and time to generate, plastic takes a longer time to degenerate! 

Plastic must not flood our planet and leave little place for living beings, and this needs every individual’s contribution.

Who doesn’t want to live in a condominium, drive a Porche, sport a Gucci purse, or spend a week or two in the Caribbean islands? But only a few can afford all this or more. The question is why do we all want to have products that define luxury? Studies show that the appeal of luxury is primarily psychological. Consumer’s concept of the self plays an important role in motivation. Consumer purchase of luxury brands frequently is driven by perceptions about self-identity, ideal self, social comparison, and other ‘self’ motivations. Most of the time luxury products are opulence incarnate and they definitely imply that ‘you are elite’. Evidence suggests that the decisions to purchase a luxury product are overwhelmingly emotional. Purchase behavior is a direct result of how the consumer perceives that a brand delivers the emotional end-benefits of buying and owning. Neuroscience reveals that the emotions associated with our judgments guide us in making decisions. Emotions and feelings are components of rationality in that they reveal what is important to us. For example, we can be emotionally drawn to good design, and then rationally decide whether the exceptional qualities of luxury design are worth the additional price versus the ‘good enough’.

The quality of luxury goods is undeniable: the unique design, the recognizable logo, and better comfort. But the price tag can be pretty off-putting. There are luxury goods and services in the market starting from $10,000 mother–baby diamond tennis bracelet sets to $700 jeans, $800 haircuts, and $400 bottles of wine. For most luxury-product buyers, characteristics that separate luxury from mainstream products are unique design, great quality, high cost, and limited distribution. A luxury brand marketing strategy is different because luxury brands are different. Consumers have different to buy luxury. Yangon-based Hsu Lin, 45, is a business woman who often visits New York city for work and shopping. She says, “I value quality in everything, even if I have to pay a hefty price for it. To me luxury defines great quality”. Thinzar, 38, a software professional who works for an IT company in Mandalay, says, “I am ready to pay a lot extra for exclusivity. Luxury brands make me stand different from the crowd. I always want to feel I am unique, I am special”. 

“I value quality in everything, even if I have to pay a hefty price for it. To me luxury defines great quality”. Hsu Lin

Luxury products are, after all, status symbols. The popular bumper-sticker slogan, “He who dies with the most toys, wins,” summarizes the desire to accumulate these badges of achievement. Definition of luxury, though, has changed in recent times. Present day consumers believe that the luxury has become less about scarcity, and more superficial. In an survey, when asked specifically how the definition has changed, more than one-fourth (27 percent) said that today’s luxury is more accessible—it no longer implies that something is exclusive or hard to obtain. Sixteen percent said that it’s become more about show than enjoyment; 15 percent said that it’s more expensive. And another 15percent talked specifically about decreases in quality.

In the last decade, major luxury brands have entered Myanmar – from the luxury property sector, luxury cosmetics chains, high-end watches, to sports cars- all have made their presence felt. A spokesperson from a luxury car segment says that people lust after products they can’t have. Such a buyer enjoys evoking these feelings when they have part of a limited run. Sometimes they maintain the value of their investment if they know that no other product get produced after the initial manufacturing period. In fact, they buy things to inspire envy in others through the display of wealth or power. According to a survey by Nielsen, Myanmar’s FMCG sector has expanded by 15% since 2014. Myanmar’s consumer class is becoming more and more brand-conscious.  Foreign brands and products have become a popular status symbol among end-consumers in Myanmar.  As market demand and purchasing power grow, consumers will continue to expect more brand options and demand more quality products, especially brands and products from western countries. A decent handbag at a high-street fashion brand like Zara or Mango can cost $50 on average, so what makes it alright to make the price skyhigh just to be seen with a specific brand logo. Similarly, there are plenty of smart phone brands in Myanmar like Samsung, Oppo, and Huawei but people want to be seen with an iPhone or an iPad. Consumers wait overnight for new releases, even though MacBooks and iPhones aren’t technologically unique or superior. In fact, Samsung or Nokia make phones with better features and sell it at a much cheaper price. Nevertheless, Apple seems to break sales records year after year. “The company has mastered the art of retail marketing and exerted more economic influence than any company in history”, says Professor Scott Galloway of New York University. 

Status-seeking is a significant source of motivation to procure appropriate products and services that let others know we’ve ‘arrived’. Passion also drives people to buy a luxury product. This is seen more in the luxury car market where car enthusiasts love automobiles as part of their hobby. They have a strong attachment to brands that offer unique experiences. They’re not looking for a vehicle to get from point A to point B. Every part of the car contributes to the way they enjoy their free time, which means this type of buyer pays close attention to every aspect of a luxury car. The luxury car market has a high barrier to entry for the average consumer, which makes it an exclusive club that not everyone can join. Some car owners end up being the only person with that particular model in their city or region, which can give them a level of local fame that’s personally desirable.

Sounds strange but often low self-esteem is a big factor in whether a person will buy luxury goods that he may not be able to afford. Such a study was published by the Journal of Experimental Social Psychology. For consumers trapped in institutionalized poverty or those living paycheck to paycheck, a luxury good can go a long way in increasing self-esteem or providing a sense of belonging. Uncertainty about other aspects of their lives also makes turn people to status symbols.  According to a study when subjects in auctions were made to feel that they had little power, they spent more to purchase items to compensate for this deficit.

Optimizing a marketing strategy for luxury goods requires a deep understanding of the target audience and what drives them to look for these products. Leveraging these triggers increases the chances of attracting qualified leads interested in moving forward. 

If you’re a parent, you’ll know that Generation Z – children born between 1995 and 2015 who grew up with easy access to the internet – are always glued to their devices. As a result, parents and teachers are always on the lookout for ways to get these kids off their phones and into the “real world”. 

Interestingly, studies have found that this early exposure to the digital world and access to unlimited information have made Gen Z children more social, more driven, and eager to be engaged in the learning process. A Barnes and Noble survey found that 51% of students said they learn best by doing while 12% said they learn best through listening. They are not passive learners. They thrive when they are fully immersed in their own educational experience. 

Schools therefore have to adapt to the needs of their students by offering more hands-on, more social educational approaches where students are immersed in their local community. Service Learning is an educational philosophy that is well suited to answer this need and at the International School Yangon (ISY), it is fully part of our curriculum. 

Established in Yangon in 1955, ISY operates as a private, non-profit school. We were established to provide education for families serving in the diplomatic and business community in Yangon. Today we serve a diverse student body of close to 800 students comprising 48 different nationalities. There are 14 different nationalities represented in the faculty. 

Whether it is an animal shelter set up by one of our teachers to help the street dogs of Yangon or a community kitchen project to help feed people in need, we at ISY have been actively finding ways to bring about positive change. 

Last year, when we evaluated the school’s mission and vision and established a series of strategic goals, Service Learning stood out as one of the main themes. 

Understanding Service Learning 

Service Learning in schools is where programs are developed to allow students to study a particular issue in their community, present ways of addressing those issues and then, if possible, implement those changes. 

Service Learning has to be woven into the curriculum and practiced in a collaborative way to be more effective. Recently, we had a collaborative project between the integrated science and computer science classes.

The types of activities that fall under Service Learning can be diverse. The activities can address issues within a particular community (like the school) or a connected community (like the parents of students at the school) or the wider community.

There is always an element of learning in each of the activities as well as an element of reflection about the activity. Visiting an animal shelter and helping clean out cages is a worthwhile activity, but should be classed as community service. Meanwhile, learning how an animal shelter operates and how much dog food is required and then raising funds to provide that amount of food qualify as a good example of Service Learning. 

We have been encouraging students to form Service Learning groups throughout the school, and to drive student-led programs with teachers as sponsors, and this has led to some very promising outcome. 

A group called SEEDS was formed to focus on all things environmental. One of their projects is to study air-conditioning and the amount of power used by the units we have at the school. SEEDS have come up with a number of ways the school can minimize power usage while maintaining the cool and conducive classrooms. Girl Up, meanwhile, is a group dedicated to raising awareness about gender equality issues. This year, they led educational campaigns at school events, created videos, held information sessions during assemblies, and managed a social media presence. 

Little steps, big impact 

Yet not all Service Learning groups need mission statements or a big-themed focus area. There are groups that help students with their English skills, or a group dedicating to gardening at the school; all of which bring meaningful impact.

Service Learning has to be woven into the curriculum and practiced in a collaborative way to be more effective. Recently, we had a collaborative project between the integrated science and computer science classes. The integrated science class calculated the carbon footprint of the school’s various activities like energy use, travel, and waste and made suggestions as to how this can be reduced. The computer science class then worked on a database to house this data and allow it to be collected on a regular basis over time. This in turn enabled the school to track and measure how energy use changes and whether the implemented changes are having an effect. 

Service Learning is also about engaging the school as a whole, and the wider community. We have partnered with United World Schools (UWS), a charity that works with communities to develop schools in remote areas. They build a school, train teachers from the local community, provide instructional materials, and support the school for 10 years. After that, the goal is to turn the school over to the local community.

UWS has worked in Cambodia for 10 years, where it has almost 100 schools there, as well as in Nepal. More recently they have started working in Myanmar. ISY sent a group of parents, teachers and students to Cambodia to learn about the program there and they came back excited to run it here in Myanmar. We are now in the fundraising stage of the UWS project in Myanmar where we are raising $30,000 in the first year (and $10,000 per year subsequently) to build local schools. 

It’s heartening to see students deeply involved in organising the first of our fundraising events: a Sport-a-thon, in which they were sponsored by their parents and friends to complete certain challenges on the day. A group has now taken full ownership of this project and they are coming up with strategies so we can continue working with this project after the charity school are built and launched, hopefully in June of 2019. 

In September, we are opening ISY Nay Pyi Taw, a second campus which will provide that same service to the foreign and local communities in upper Myanmar. We are working closely with the Myanmar Ministry of Foreign Affairs and the Shwe Taung Group in developing this new campus to fulfil our promise to support our host country in its aspirations. Service is at the core or everything we do, and we look forward to bringing this service culture in Nay Pyi Taw very soon. For more information about this project and ISY, please visit: https://www.isyedu.org .

There is saying: “When you have one thing, you have one thing to lose.” It means that if we have a house, there is a chance we might lose that house. So how can we cover this risk? This is what insurance companies exist for. Some risks cannot be controlled. They can only be transferred. Now, Myanmar people are exposed to taking insurance as the Myanmar Insurance Industry is growing rapidly. Some people said it can be seen as a booming sector in the country. There are so many changes and development since after the government liberalized the market. Previously, Myanma Insurance (State Owned) controlled almost every policy, product development and others even though there were local private insurance companies. But now, many insurance companies can reach out to people and businesses with their insurance products, packages and services. 

In the history of Myanmar’s insurance sector, the industry was closed for decades but it is now open and liberalised. The market was operated as the Uni-Polar Market by Myanma Insurance since 1952, but in 2012, the government allowed 12 private insurance companies and made them operational within six months and significant changes began. Foreign insurance firms have started operating in the country either as Joint Venture or as 100% wholly owned subsidiaries later these days. So there are many choices. 

New Dynamics in Insurance Market

Actually, before fully liberalization of the market, insurance products were developed only by Myanma Insurance. But now, according to “INTO MYANMAR Insurance Summit 2019”, products are going to be developed from the perspectives of market needs, policyholder protection, and actuarial science.  Therefore, there will be many choices of insurance products in the market. Also, businesses in the country have begun to consider the benefits of having insurance. 

Myanmar insurance companies provide Group Life Insurance. According to “AMI Insurance”, wellbeing of employees is extremely important for an organization to be successful.

As I mentioned above, when we have ‘something’, there is a chance we may lose that ‘something’ one day. According to “iEduNote,” there are 6 important reasons why businesses should have insurance; 1. The uncertainty of business losses is reduced. 2. Business efficiency is increased with insurance. 3. Key man indemnification. 4. Enhancement of credit. 5. Business continuation. 6. The welfare of employees. Although there are many insurance products in the market, some of them like Comprehensive Motor Insurance, Fire Insurance, Cash in Safe Insurance, Cash in Transit Insurance, and Group Life Insurance, are common among the insurance companies. 

First and foremost insurance for the businesses is Fire Insurance, the policies of which changes slightly depending on the insurance companies. Fire Insurance policies provide the following covers: building, stocks and other contents, machinery, movable and immovable fittings, tools, furnishings and fixtures within the premises. Benefits can be separated as “Total Loss” and “Partial Loss”, and the period of the term can differ from ten days to one year. The interesting part is “Additional Cover,” in which customers could be covered risks from Riot and strike, Malicious damage, Earthquake shock, earthquake fire and volcanic eruption, Explosion, Storm, typhoon, hurricane, tempest and cyclone, and War risks. These risks can be easily covered by paying additional premiums. 

Insurance and Employee Motivation

Myanmar insurance companies provide Group Life Insurance. According to “AMI Insurance”, well-being of employees is extremely important for an organization to be successful. Organization must look after not only their employees but also their families so that employees will be motivated and resulting in higher productivity. So, how can an organization have those “important well-being employees”? GGI Insurance said “This insurance ensures financial protection for employees and their families. So we can say providing Group Life Assurance cover for employees is indeed a goodwill act of the employer. What’s more, this insurance helps cement trust between the employer and employees which indeed is the cornerstone of uplifting corporate Social Responsibility.” So, what risks does it cover? It covers employees or members of the organization against any economic loss for their families caused by death, permanent disability or injury of the insured employees. This coverage could, also, be considered as part of the benefits for employees to work with a peace of mind.

Insurance for Drivers

“Comprehensive Motor Insurance”, the most popular one in the country, comes with the adjective “Comprehensive” in its name. Is it really comprehensive? Why is it named like that? First, it can be applied for every vehicle registered in Road Transportation Authority. Second, it also covers the passengers inside the insured vehicle when an accident happens. Third, there is a limited amount of claim for the other vehicle(s) when an accident is happened with the insured vehicle. Fourth, moreover, there are “Additional Covers” which include Windscreen, SRCC (Strike, Riot and Civil Commotion), Acts of God (Flood, Windstorm, and Earthquake), War Risks, and Theft. Besides, vehicles are must-have things for businesses today so that this insurance is essential for a business organization. 

Insurance for Cash Holders

There is an insurance called “Cash in Safe” which is developed for businesses. “For every business, it is important to safeguard their assets from unforeseen risk as it can disrupt the daily business operation and may incur losses. Thus, Cash in Safe insurance can help the businesses to protect against loss of money which is kept in the safe at own premises,” according to Ami-insurance.com. It also covers the loss of cash due to theft or robbery. So, it could be more suitable for banks. The next one has the similar name, “Cash in Transit Insurance,” but different in functions. It is important for every business to secure its cash during a transit as there are many uncertainties to disrupt the daily operation and may incur losses. Therefore, this can cover any loss of cash due to theft or robbery during a transit.  

Players and Providers

Some of the main insurance players and providers in 2019 include AYA Myanmar Insurance (AMI), AYK Insurance Service, Capital Life Insurance, FNI Insurance, GGI Insurance, Global World Insurance, IKBZ Insurance, Myanma Insurance and Myanmar Insurance Association. Since the government has liberalized insurance market, there may be new international players who may come to Myanmar and compete with local organizations. This could be good news for the individuals and businesses as the market may bring better products at more affordable premiums.

A broad definition of real estate covers property, land, buildings, air rights above the land and underground rights below the land and that there are four types of real estate: Residential real estate, Commercial real estate, Industrial real estate, and land.

Residential real estate includes both new construction and resale homes. The most common category is single-family homes. There are also condominiums, co-ops, townhouses, duplexes, triple-deckers, quadplexes, high-value homes, multi-generational and vacation homes. Commercial real estate includes shopping centers and strip malls, medical and educational buildings, hotels and offices. Apartment buildings are often considered commercial, even though they are used for residences. That is because they are owned to produce income. 

Industrial real estate includes manufacturing buildings and property, as well as warehouses. The buildings can be used for research, production, storage and distribution of goods. Some buildings that distribute goods are considered commercial real estate. The classification is important because the zoning, construction and sales are handled differently. And land includes vacant land, working farms and ranches. The subcategories within vacant land include undeveloped, early development or reuse, subdivision and site assembly.

According to the Founder and Director of Shwe Property Real Estate, Kaung Thu Win, there is no reasonable situation as to why the policies and the real estate markets remained unchanged in Myanmar in 2019, though a lot of changes took place in 2017 and 2018, especially in 2018. Recently, the issue of home loans became a major trend in real estate sector as a few local banks such as Ayeyarwaddy, Kan Baw Za and Yoma started providing new products like home loans to the buyers and that makes it easier for many qualified buyers possible to purchase houses or apartments in the market. 

According to the Colliers Myanmar Office Q1 2019, the citywide average rental rate has corrected downwards at $38 per square meter per month, a decline of 1.5% and 6% on a quarterly and annual bases respectively.

To purchase a property in Myanmar with home loans, the project must be finished at least 70% or 80% and only the projects that meet this criteria are eligible for home loans. The last few years saw the introduction of laws, which relate to the policy for real estate markets, specifically to acknowledge the needs of developers and buyers. For example, Condominium Law was passed just before the change of government and the by-laws have been published which makes it possible for a foreigner to purchase a condominium in Myanmar. This is one of the examples of improvement in laws and regulations which affect the overall sector.

Not only that, there are improvements concerning the laws for apartment buildings and the  last two years saw resurrection of residence building projects across Yangon. Back in 2017, separate from the condominium law, the apartment law was strengthened to protect the ownership of the buyers and also for mortgaging purposes. Moreover, the laws concerning real estate services, the laws to protect the service providers were also strengthened. This is a result of real estate related associations and bodies giving a push on the laws relating to their sector.

More than five or six years ago, many businesses had to pay premium prices for office space such as the one in Sakura Tower because there were few office space that met international standards. In 2019, as the number of projects, buildings, and apartments has risen up, buyers or investors can select any type of property they prefer and that improves supply of properties for commercial rent markets and businesses. Just as the supplies are abundant in the market, the demand from the buyers or renters may not be catching up. Therefore, for the ones who want to buy or rent a place, this year may be the best time for getting a perfect deal. Market insiders also say that there is a new trend in commercial property renting. Previously, there was more short-term renting but the new trend is toward longer term leasing. Some of the foreign businesses and building developers have made partnerships to sign long-term leasing contracts for up to 10 or 15 years. Also, businesses who rent for at least two years now want to discuss with their landlords about how the market would be in the next three years whether it will be up or down and some have put in conditional factors in the contracts.

Market Statistics

According to the Colliers Myanmar Office Q1 2019, the citywide average rental rate has corrected downwards at $38 per square meter per month, a decline of 1.5% and 6% on a quarterly and annual bases respectively. Moreover, in terms of location, downtown rate remains highest at an average of $43 per square meter per month. Colliers stated that they expect the market to experience a more competitive rental environment in the next three years. And they believe that it would create an impetus for potentially large-scale businesses to scale up operations, as well as small and medium sized tenants to relocate in formal office buildings.

Real estate sector has started to become more pro-active as the 2019 Myanmar National Real Estate Awards (MNREA), powered by Shwe Property, was held on May 28 at N0v0tel Max, Yangon and it was the country’s first of the kind with the aim to celebrate annually to reward top property developers and constructions in the local property development industry., The 2019 MNREA promised to help stimulate the property of real estate sector in Myanmar, through a fair and all inclusive platform that will showcase and celebrate the best property development projects in the nation.

Note: Myanmar Insider would like to thank Shwe Property Real Estate and Research for providing information for this article.