SEZs attract 108 enterprises, capital of $1.7 bln

MYANMAR’S Special Economic Zones have attracted 108 enterprises, including four domestic firms, along with capital of US$1.7 billion as on May, according to data from the Directorate of Investment and Company Administration.

The country is currently implementing three SEZs under the Special Economic Zone law — Thilawa, Kyaukpyu, and Dawei. Of them, Thilawa is leading with better infrastructure and successful businesses.

Singapore has topped the list of SEZ investors, with fund inflows of $646.65 million, making up 37.9 per cent of the total investment, followed by Japan ($531.28 million) and Thailand (over $169.29 million). The Republic of Korea, Hong Kong, the UK, the UAE, Malaysia, Austria, China (Taipei), Panama, China, Brunei, Viet Nam, Australia, France, Switzerland, and the Netherlands have also invested in the SEZs.

SEZ Holdings Public Limited’s 2017-2018 annual report, 97 per cent of plots in Thilawa Zone A and 61 per cent in Zone B have been sold.

Companies in the Promotion Zone of the Thilawa Special Economic Zone account for over 75 per cent of the overall investment. Companies which produce goods for the domestic market are regarded as Promotion Zone companies, and get a five-year holiday on corporate tax. Companies which export at least 75 per cent of the production in value are registered as Free Zone investors, and are exempt from paying corporate tax for a period of 7 years after starting commercial operations. Companies involved in sectors such as logistics, which support export-oriented manufacturing, can also be Free Zone companies. There are other tax incentives for Free Zone and Promotion Zone investors on imports of capital goods, raw materials, merchandise, and consigned goods and vehicles. More information on the tax system can be obtained on http://www.

The manufacturing sector absorbs the largest share of foreign investments. Investments have also flown into the trading, services, transportation and logistics, real estate, and hotel sectors in the past few years. — Ko Khant (Translated by Ei Myat Mon)