Siam Cement expect stronger growth in Myanmar in 2019

Siam Cement Group (SCG) expects its growth target for 2018 in Myanmar to be affected by inflation and flooding. This is despite seeing cement sales in Mon state rise nine per cent YoY and revenues of US$152m in the 1H18, which were up 14 per cent on 1H17.

Surachai Pomjindachote, SCG's Myanmar director, said," For this year, Myanmar is facing floods and inflation, so total growth of the country might fall below target. But in 2019, we foresee higher growth compared to this year's.

"Myanmar's laws and regulations support foreign investment. But uncertainty and challenges remain, such as the kyat depreciation, natural disasters and some minor problems. This may slow down economic growth," he said.

"However, with the strong bond of the SCG brand in the Myanmar society for more than 20 years, we always have a positive outlook here. We have planned to continue investing in this country, as we are certain about the future of Myanmar. It is common for an investor to face uncertainty and difficulties when investing in a foreign country. So, preparing a plan to overcome the uncertainties is the key [to success]."

"As Myanmar is more open to foreign investment, more foreign construction material providers will enter the country. This environment creates a healthier competition where there are many players in the market, giving consumers more choices," Mr Pomjindachote added.