Yangon City Development Committee (YCDC) has announced a new partnership with the International Finance Corporation (IFC) with the goal to reform and streamline the construction permit system. A sister organisation to the World Bank, the IFC's involvement in Myanmar will aim to strengthen the role of the private sector, support the country's business regulatory and legal reforms and create a business and investor-friendly environment. 

At a glance: Myanmar's Results - World Bank Doing Business 2018 Report

• Myanmar ranked 171 out of 190 in Ease of Doing Business Rank: 
  • Starting a business - 155
  • Dealing with construction permits - 73
  • Getting electricity - 151
  • Registering property - 154

According to a recent World Bank study, Myanmar's construction sector accounts for around 5% of the workforce - with approximately one million workers - and has the highest earning potential, compared to other sectors. Apart from creating jobs, the sector supports the development of vital infrastructure projects and other industries, such as manufacturing and tourism.

In the World Bank's Doing Business report, which analyses the ease of doing business in 190 economies worldwide, Myanmar has ranked at 73 in terms of dealing with construction permits with room for further improvement. 

YCDC's Secretary Daw Hlaing Maw Oo said, "The goal of this partnership with IFC is to streamline and automate Yangon's construction permit process by June 2019. This will allow us to reduce paperwork and complete applications on time. It will also help builders and investors execute projects efficiently."

In partnership with Australia, the United Kingdom, and Japan, IFC will support YCDC to reform Yangon's current construction permit system, by proposing and implementing a streamlined risk-based process, among others. While supporting YCDC with capacity building exercises, IFC will keep engaging with end-users to ensure a customised system that addresses the needs of Yangon's construction sector. 

"An efficient transparent, and affordable permit system can lead to a healthy, competitive and sustainable construction sector," said Vikram Kumar, IFC Country Manager for Myanmar.

"With its vast experience in reforming construction permit systems globally, IFC is well-positioned to help Yangon draw property investors by establishing a streamlined process. The reform will reduce administrative bottlenecks and increase Myanmar's management capacity, thus promoting sustainable private sector development and creating jobs. We expect Myanmar's Dealing with Construction Permit ranking in the Doing Business report to improve once the reform is fully implemented," he said. 

The signing ceremony was attended by Daw Than Myint Aung, YCDC committee member; U Than, Joint Secretary of YCDC; Daw Hlaing Maw Oo, Secretary of YCDC; Vikram Kumar, Country Manager of IFC; Jose Ricardo Silva, Senior Private Sector Specialist of IFC; Ashani Alles, Senior Private Sector Specialist of IFC.  

Click here to view the World Bank Doing Business 2018 Report.

For more information, to discuss the report email Vikram Kumar of IFC via the contact details listed below. 

This article was previously published on Mingalar Real Estate Conversation

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