CNI News
3 Sept 2022
Due to the increasing prices of construction materials, they are suffering losses, building contractors told the CNI.
Ko Kyaw Soe Moe, a building contractor, said the prices of steel bars have risen from MMK 750,000 to MMK 1 million per ton.
Ko Kyaw Soe Moe told the CNI, “We can no longer accept new projects as the prices of all construction materials including cement, steel bars, brick, sand and pebble have increased exponentially. So, we are in trouble and face many difficulties. We are spending our own money for projects in which we are responsible to buy construction materials. We accepted a construction project for MMK 10 million based on the prices of construction materials at that time. Then, the prices of construction materials increased exponentially. We could build a two-storey for MMK 25 million in the past. Now, we cannot build such a building for MMK 35 million.”
A shopkeeper in Yangon.
Cement prices rose from MMK 5,000 before the coup rose to MMK 9,000.
Therefore, building contractors have stopped bidding for Yangon City Development Committee projects and turned to construction of RC building under PAE system.
However, only a few people build new home due to financial difficulties caused by the general crisis. As a result, daily wage earners in the construction industry are struggling for their survival.
In the past, daily wage earners were so busy that they did not have days-off but there is no job for them, Ko Soe Aung, a daily earner, told the CNI.
Workers return to Dala on the other bank of the Yangon River
Ko Soe Aung said, “The rising commodity prices are another blow to up. As a bottle of cooking oil hits MMK 5,000, we have nothing left after buying food even if I earn MMK 10,000 a day. We had to borrow money for things we need. In the past, we had jobs for the entire month. Now, we don’t have jobs the entire month and we have to borrow money. I have secured a job for only three days.”
As he suffered losses, he planned to suspend his construction works until October, Ko Kyaw Soe Moe told the CNI.
Some construction sites have suspended their works due to rising US dollar exchange rates and prices of construction materials.
