Sembcorp Industries announced on August 17 that its wholly-owned subsidiary, Sembcorp Development will develop its first integrated urban development in Myanmar.

The Myanmar Investment Commission, under the direction of the Myanmar government, has issued a permit approving the development of the Myanmar Singapore Industrial Park.

In a statement via SGX, Sembcorp says an agreement will be signed shortly with the Yangon Region government for the lease of 436 hectares of land in the Hlegu Township of Yangon Region for industrial, residential and commercial purposes.

The industrial park will be developed over a period of nine years, in tandem with market demand.

The master development of the Myanmar Singapore Industrial Park will be undertaken by Myanmar Singapore (Hlegu) Industrial Park JV Co (MSIP JVCo).

The company was incorporated in Myanmar with a paid-up capital of US$2 million ($2.8 million). Its shareholders comprise Sembcorp CSSD Myanmar, Pahtama Group and Myanmar Agribusiness in the proportions of 67%, 18% and 15% respectively.

Sembcorp has a 50.6% effective ownership in MSIP JVCo.

The development of the Myanmar Singapore Industrial Park is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending Dec 31, 2020.

Shares in Sembcorp Industries closed 2 cents lower, or 1.0% down, at $1.89 on August 17, prior to the announcement.