Home MMBIZ News Govt to Form Public Company to Operate Thilawa SEZ

Govt to Form Public Company to Operate Thilawa SEZ

The Myanmar government will form a public company to invest in Thilawa Special Economic Zone (SEZ), Deputy Minister of National Planning and Economic Development U Set Aung said.
“When establishing the public company, share prices will be fixed and there will be opportunities for individuals, private firms and other public companies to purchase shares,” the deputy minister said.
“We will limit the number of shares that a person or a company can buy. This will prevent a monopoly.”
Three Japanese companies will be involved in running the public company, U Aung said.
Thilawa SEZ is a joint venture between Myanmar and Japan, with Japan and Myanmar having 49 and 51 percent stakes respectively. This will be the largest industrial complex in South East Asia when completed. The Master Plan for Thilawa SEZ is expected to be completed by the end of January.
“Thilawa project is a key project and there will be transparency,” U Aung said.
U Set Aung, also the chairman of the Management Committee of the Thilawa SEZ, discussed the issue at a workshop between the two countries at the Union of Myanmar Federation of Chambers of Commerce and Industries (UMFCCI) headquarters in Yangon.
Thilawa project lies on 2,400 hectares of land 25 kilometres south of Yangon. Plans are underway to run industries in Thilawa in 2015, U Win Aung, UMFCCI Chairman said.
Several Japanese businesses have invested in the SEZ, including Mitsubishi, Marubeni and Sumitomo Corp. It is also expected that the Japanese government, Japan International Cooperation Agency and some Japanese banks will get involved in the project, along with businesses from the US, Singapore and Thailand.
The deputy minister also said Japan will provide loans to establish infrastructure outside the SEZ.
“Japan will not loan to an individual developer of the area. It is a government-to-government loan,” he said.
Myanmar and Japan signed a Memorandum of Understanding on December 21 to cooperate on Thilawa SEZ where companies will set up factories of various sizes.
Japanese Finance Minister Taro Aso visited Myanmar in the first week of January and paid a visit to the project area during his trip.
Japan has been urging Myanmar to form a public company to get the project off the ground getting necessary finance from private entities. Japan also insisted that the government take a portion of shares to prove its commitment in the project.

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