CNI News

26 May 2025

In the aftermath of the 7.7 magnitude earthquake that struck Myanmar, construction businesses are experiencing low activity due to difficulties in purchasing construction materials and other issues, business owners told CNI News. 

Currently, there is a lot of repair work in earthquake-affected areas, while construction work is low in other areas, U Myo Myint, general secretary of the Myanmar Construction Entrepreneurs Federation, told CNI News. 

It was because of the shortage of construction materials and the rising costs, causing difficulties for entrepreneurs and homeowners, he said.

“The main problem with the low activity of construction work is that materials are insufficient for the demand. After the earthquake, the first problem is difficult to get enough cement.  Because we have to construct buildings that can withstand a Richter scale 8 , the cost will be higher than the original cost. Therefore, it becomes difficult for some homeowners who will build, as well as for those who will build with a contract. For example, if the contractor invests more, he will not be able to give the homeowner much. Moreover, currently, there is a lot of repair work in the earthquake-hit areas, so there is less construction work in other areas," U Myo Myint said.

During the current reconstruction work, the mainly needed cement is not available due to high demand, and other construction materials are also in short supply. The Union Minister for Industry then said that he had instructed the relevant factories to sell cement to earthquake-affected buildings at 17,000 kyats per bag.

However, the prices on the ground are as high as 40,000 kyats, and they do not receive vouchers when they buy. Therefore, construction entrepreneurs point out that the demand for cement, which is the main requirement for the construction industry, should be met by importing it from abroad, depending on the amount that can be produced domestically. 

As people have had little interest in high-rise buildings since the earthquake, there are few large-scale construction projects while small scale construction activities only were more, U Maung Maung, chairman of Shwe Gabar Maung Maung Construction, told CNI News.

"After the earthquake, people's interest in high-rise buildings has decreased. So, construction work has decreased compared to before. We don't see many people building high-rise buildings. Another problem is that the labor force has become scarce." he said. 

When constructing buildings, they must be built that can withstand at least a Richter scale of 8, said the SAC Chairman Senior General Min Aung Hlaing during his visit to the earthquake-stricken Inle Lake region on April 11, 2025, and  his meeting with the public.

In addition, government departments sold iron, steel, cement, and construction materials needed for rehabilitation work in Naypyidaw from May 12 to 18.