SAC Vice Chairman Deputy Prime Minister Vice-Senior General Soe Win delivers speech at first meeting of Myanmar Special Economic Zone Central Committee for 2024-2025 FY
Nay Pyi Taw May 23
The Myanmar Special Economic Zone Central Committee held the first meeting for 2024-2025 financial year at the conference hall of the Ministry of Commerce in Nay Pyi Taw at 1.30 pm today, with an address by Chairman of the Central Committee Vice Chairman of the State Administration Council Deputy Prime Minister Vice-Senior General Soe Win.
Also present at the meeting were members of the Central Committee Union ministers, deputy ministers, chairmen of the management committees of Thilawa, Kyaukpyu and Dawi SEZs, directors-general and officials together with the chief ministers of Yangon and Taninthayi regions and Rakhine State through video conferencing.
Speaking on the occasion, the Vice-Senior General said that it was the first meeting for 2024-2025 financial year of the central committee in which it is necessary to review work processes of previous years.As the Myanmar SEZ is being initiated depending on the Myanmar SEZ Law (2014) and rules, all have to take care of their work processes without derailment from the laws and procedures. As the meeting was held in accord with the provisions of the law, all members have to discuss necessary measures and additions as much as possible. The State Administration Council is implementing economic objectives for economic development of the nation, and implementation of visions and projects of all SEZs must be conformed to the objectives of the State. Trade development and increased investment are important for economic development of a country. With regard to the trade, the Prime Minister frequently gave guidance that production forces such as all industrial zones in regions and states and MSME businesses in addition to SEZs need to increase high quality export products on one hand, and it is necessary to strive for further increase of local and foreign investments in relevant zones.The Vice-Senior General stressed the need to attract investments to Thilawa SEZ having success and on-going Kyaukpyu SEZ. Likewise, developers who are interesting in Dawei SEZ to invest are being invited and local authorities and SEZ management committees have to give investment opportunities to them.
Among three SEZs, Thilawa SEZ has been achieving success with more than US$-2 billion of investments, but number of investment amounts from neighbouring is lesser in comparison with that of neighbouring countries, Southeast and Asian countries.
As such, authorities should not be satisfied with current amount of investment, and they all have to seek the best ways for increasing the investment amounts. Moreover, it is necessary to supervise actions of service personnel in abusing authority, illegal trade, monetary abuse and weak management not to cause loss of investment.
Hence, chairmen of management committee, members of central committee and officials have to achieve further success in implementing Thilawa, Kyaukpyu and Dawei SEZs. Thilawa SEZ has free zone and promotion zone. Free zone does not have any difficulties on foreign exchange but the Vice-Senior General said he recognizes efforts of chairmen from relevant task forces and foreign exchange management committee for solving difficulties in raw materials and loans at promotion zone.
Likewise, a policy has been adopted for managing the compensation for land plots of Kyaukpyu SEZ. So, it is necessary to complete all work processes as much as possible.
With regard to Kyaukpyu SEZ, the coordination meeting in December 2023 achieved success.
It was extended the long stop date with a further 18 months period. So, it has passed some five months period. During the remaining term, it is necessary to manage completion of relevant measures and implement further plans under the law. On the other hand, relevant company and organizations have to implement their work plans for investment measures. In this regard, both sides have to complete all measures within a 18-month long stop date term.
The Vice-Senior General stressed the need to organize and explain provisions of rules and law to those from SEZs not to delay work processes and ensure work convenience without difficulties. Thilawa SEZ imports raw materials abroad, and the government coordinates with companies for such measures.
It is necessary to continue management for minimizing the difficulties. Moreover, a plan should be set for MSMEs at home to supply high quality raw materials to Thilawa SEZ. On one hand, management committees of SEZs have to coor-dinate these measures. Relevant chief ministers have to encourage MSME businesspersons and agencies to supply high quality raw materials to SEZs as part of setting an aim to substitute all required raw materials with domestic materials for the whole SEZ.
According to the March 2024 report, over Ks-2.1 billion were generated through the linkage of goods produced by MSMEs.
The management committee and work committees, along with MSMEs, must cooperate to link more high-quality export replacement goods.
In the Thilawa Special Economic Zone, customs revenue for March 2024 exceeded Ks-361.99 million, trade tax revenue was Ks-4.6 billion, and advance income tax revenue was Ks-760.68 million. Export volume in March was US$-13.349 million, while import volume was US$-52.278 million. Therefore, relevant business groups and the management committee are to help companies in the promotion zone export more goods to reduce the gap between export and import values.
The companies in the Thilawa SEZ should be encouraged to use their own solar power systems.If the zones use solar power, electricity distribution can be extended to other necessary regions and states.
Regarding the Dawei Special Economic Zone, discussions have been held with the SPV (Special Purpose Vehicle) finance support group formed by Japan, Thailand, and Myanmar. Necessary actions will be taken based on these discussions. For the upcoming Memorandum of Interest (MOI) signing concerning the Dawei SEZ, thorough examination by local legal experts and procedures experts is required to ensure a win-win situation. It is emphasized that businesses should be carried out with long-term sustainable development in mind. During today’s meeting, the progress and ongoing plans for the special economic zones were discussed. Attendees are invited to provide necessary suggestions.
Joint Secretary of the Myanmar Special Economic Zones Central Committee Deputy Minister for Commerce U Min Min clarified the implementation status of decisions made at the first meeting (1/2024).
Secretary 1 of the committee Union Minister at the SAC Chairman’s Office (2) U Aung Naing Oo and Secretary 2 of the committee Union Minister for Commerce U Tun Ohn clarified the current implementation status of the Myanmar Special Economic Zones.
Then, the central work committee secretary and the chairmen from Thilawa, Kyaukpyu, and Dawei Special Economic Zones read out the messages sent to the meeting and sought approval.
The union ministers and attendees then discussed suggestions and issues related to the special economic zones.
The first meeting's draft resolutions for the fiscal year 2024-2025 were presented and approved.
Later, the Vice-Senior General gave concluding remarks, integrating necessary actions, and concluded the meeting.