MYANMAR Burmese, second buyers of property in Thailand after Russians

Following the collapse of the economy due to the civil conflict in Myanmar, more and more capital has been placed outside the country, similar to what happened in Russia with the outbreak of the Ukrainian crisis. In recent days, the ruling military junta has arrested dozens of people accused of money laundering through real estate purchases abroad.

Bangkok () – Burmese are among the largest foreign buyers of property in Thailand. The latest figures show that after entering the top 10 investors by nationality in the Thai real estate market in 2022, the Burmese even rose to second place, after the Russians, in the first quarter of this year.

This phenomenon has to do with the ongoing civil war and the need to place large amounts of capital outside the country, but it is also intertwined with speculative and illegal activities. The same reasons moved Russian investors towards Southeast Asia after the outbreak of the war in Ukraine.

Following the 2021 military coup, foreign investment in Myanmar has dropped sharply and sanctions imposed on the ruling junta have further weakened the economy. According to data from the United Nations Development Program, the poverty rate has doubled since 2017, going from 24.8% to 49.7%. The regime’s unlimited printing of banknotes and increased war spending have further depleted remaining resources.

This pushes those who still have capital to divert it to other places, with the difficulties posed by the “black” exchange rate, much more unfavorable for the purchase of foreign currency than the official one, and overcoming the limitations imposed by law and still hardened. more for the coup junta.

In recent days there have been dozens of arrests of individuals accused of money laundering through real estate purchases abroad. Despite the depreciation of the local currency, the kyat, Myanmar’s great fortunes and capitals continue to seek directions other than national ones. Associated with this is an economy, partly underground, partly parallel, that allows the Burmese to live or survive during the conflict, which broke out after decades of economic closure, during which a few groups in power, starting with the military, They worked exclusively for their own interests, often cooperating with foreign companies to exploit local resources.