SEZs attract 113 enterprises as of end-July

22 August

In ten months till July in the current fiscal year, a total of 113 enterprises, including four domestic businesses, brought in capitals of US$1.72 billion into the Special Economic Zones (SEZs), according to data released by the Directorate of Investment and Company Administration. 

Singapore topped the list of investors, bringing in $646.6 million, or 37.5 per cent of the overall investment, followed by Japan with $535.43 million and Thailand with over $174.07 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 also invested in the SEZs. 

Myanmar is currently implementing three Special Economic Zones — Thilawa, Kyaukpyu, and Dawei. Out of the three, Thilawa is leading with better infrastructure and successful business.

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

Companies in the promotion area of the Thilawa Special Economic Zone (SEZ) accounted for over 75 per cent of the total investment. A company exporting at least 75 per cent of the production, in terms of value, is deemed a Free Zone investor and is exempt from corporate tax for 7 years from the time it starts commercial operations. Companies such as logistics which support export-oriented manufacturing can also be considered free zone companies. Domestic-oriented manufacturing companies are regarded as promotion zone companies, and they are eligible for a five-year tax holiday on corporate tax. 

There are other tax incentives for free zone and promotion zone investors on importation of capital goods, raw materials, and merchandise, and consigned goods and vehicles. Further information about the taxation system is available on the website 

While the manufacturing sector absorbs the largest share of foreign investments, funds have also flowed into the trading, services, transportation and logistics, real estate, and hotel sectors in the past.—Ko Khant (Translated by EMM)