Myanmar nationals second in real estate investments in Thailand after Russians
After the collapse of Myanmar’s economy due to the civil war, more and more capital is fleeing the country, like in Russia after the outbreak of the Ukrainian crisis. The ruling military junta recently arrested dozens of people for money laundering through foreign real estate purchases.
Bangkok (AsiaNews) – People from Myanmar are among the top foreign buyers of real estate in Thailand.
The latest data show that Myanmar nationals joined the group of top 10 foreign buyers in Thailand’s real estate market in 2022, reaching second place in the first quarter of this year after the Russians.
This has a lot to do with the country’s ongoing civil war and the need to place large amounts of capital in safer locations, as well as speculation and illegal activities.
These are the same reasons that drove Russians to invest in Southeast Asia after the outbreak of the war in Ukraine.
Following the 2021 military coup, foreign investment in Myanmar dried up while sanctions imposed on the ruling junta further weakened the economy.
According to data from the United Nations Development Programme, Myanmar’s poverty rate has doubled compared to 2017, from 24.8 per cent to 49.7 per cent.
The regime's unlimited printing of banknotes and increasing war spending has further drained the remaining resources.
This is driving people with capital to move it elsewhere, through difficult channels, to buy foreign currencies at black market rates rather than the official one, getting around legal constraints tightened by the military junta.
However, scores of people have been arrested in recent days, charged with money laundering through real estate purchases abroad.
Given the depreciation of Myanmar’s currency, the kyat, Myanmar’s rich continue to look for foreign shores to park their money. This is related to an economy that is largely underground, allowing the population to get through the civil war.
The latter broke out after decades of closed economy policies, during which a few powerful groups, starting with the military, worked exclusively for their own interests, often cooperating with foreign interests to exploit local resources.
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