The Special Economic Zones must be implemented following the stipulations of the Myanmar Special Economic Zone Law and Rules issued in 2014 and in alignment with the current situation, said Vice-Senior General Soe Win.
The Central Committee on Myanmar Special Economic Zones held the second coordination meeting at the Ministry of Commerce in Nay Pyi Taw yesterday, with an address by Central Committee Chairman, State Administration Council Vice-Chairman Deputy Prime Minister Vice-Senior General Soe Win.
Speaking on the occasion, the Vice-Senior General said that it is necessary to consider not only the economic perspective but also the political aspect when implementing the special economic zones in the country. Therefore, regarding the currently implemented Thilawa Special Economic Zone, the Kyaukpyu Special Economic Zone and the Dawei Special Economic Zone to be implemented in the future, the members should act by integrating both political and economic sectors.
Among the three economic objectives of the SAC, invigorating the MSMEs to fortify the export sector is a major factor. The Myanmar Special Economic Zone Law and Rules were enacted in 2014. Regarding the investment made in special economic zones, the directive of the Prime Minister to promote the export volumes is the key. In inviting the investment to special economic zones, the investments that produce export products to the international countries should be prioritized. The Thilawa SEZ exported a total of US$163.466 million and imported $559.284 million from April to January 2024-2025 financial year, totalling $722.75 million. However, when compared with the special economic zones of neighbouring countries, the volumes are still lower. Therefore, the Thilawa SEZ Management Committee Chairman and officials should review the situations of the zones and special economic zones of other countries to develop the zones and receive the lowest deficits in export and import. Similarly, it needs to invite the entrepreneurs who will prioritize the export volumes in the Kyaukpyu SEZ and Dawei SEZ to be implemented in the future.
The Vice-Senior General then highlighted the highest amounts of raw materials in the import sector and the highest export volumes.
He also instructed to negotiate and persuade aiming to increase the export volume. Moreover, it should link with MSMEs regarding the amount that they can substitute. Such a connection with MSMEs aims to reduce the use of foreign currency and promote the export volume. The MSMEs also need to ensure their products while submitting the substitute products.
There is a Free Zone and a Promotion Zone at Thilawa SEZ, and although there is no challenge regarding the foreign currency in the Free Zone, there are some difficulties in the Promotion Zone in certain situations. The relevant ministries and Foreign Exchange Supervisory Committee are resolving such situations as much as they can.
It earned $6.0596 million and over K51 billion in 2024-2025 from substitute products through the link with MSMEs. Therefore, the agencies and officials from regions and states should put special emphasis on providing assistance to import substitute sectors of the special economic zones in pursuit of the policy made by the Head of the State.
In the tax collecting sector, the country received K935 million in tax, over K9 million in commercial tax, K2.2 billion of advance income tax and K2.68 billion in income tax, according to digits in January 2025. The one-stop service should also make efforts to collect the tax fully for the interests of the country.
The Vice-Senior General added that the full supply of electricity is the key for the special economic zones and industrial zones. Therefore, the manageable-scale solar plants are suggested to be implemented in Thilawa SEZ, and now it can generate almost over 16MW after installation. The 20MW solar plant was installed at Tatmadaw, and the break-even point will reach in three and a half years, and it will soon reach the due period. Therefore, it can not only cover the required consumption but also produce surplus power that can be sold to the State, and the officials should explain and encourage the relevant companies and business people regarding the solar plants. They also need to discuss the establishment of manageable-scale solar plants in future special economic zones.
Concerning the Kyaukpyu SEZ, the Concession Agreement for the Kyaukpyu SEZ deep seaport project was signed on 5 November 2020, and the Addendum was signed on 26 December 2023 in Nay Pyi Taw by the project company and the Kyaukpyu SEZ Management Committee. The long stop date was also extended. The expansion period will end on 25 June 2025, so the two sides must complete the work processes within two months before the expiration date. The work committee and other relevant committees should provide required assistance to ensure completion.
The Kyaukpyu SEZ is both economically and politically important for the country, according to the geopolitical situation. It can bring numerous benefits to the local communities and the country. Therefore, it needs to ensure the successful implementation. The successful deep seaport project can lead Myanmar to participate in the Myanmar-China Economic Corridor Project and strengthen the bilateral cooperation for the Belt and Road Initiative.
Regarding the Dawei SEZ, the Myanmar-Thai-Japan discussion should be made for the eradication of SPV (special purpose vehicle). During the visits of the delegation led by the SAC Chairman and Prime Minister to the Russian Federation and Belarus, many opportunities for Dawei SEZ were created, so the proper achievements will come soon. Therefore, the preparations should be made for the investors.
In doing so, although the cases with the Italian-Thai Development Company Limited were completed, it needs to carry out in line with the procedures with legal officials. There should be a win-win situation for the investors. He then urged the attendees to coordinate the discussion as the meeting is the second one held in the 2024-2025 financial year.
Next, the attendees reported on the matters from their respective sectors, and the Vice-Senior General concluded the meeting.
MNA/KTZH
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