Three foreign companies withdraw their investment plans from the Thilawa Special Economic Zone (SEZ)

Three foreign companies have withdrawn their investment plans from the Thilawa Special Economic Zone (SEZ), according to U Aung Htoo, deputy commerce minister.

The minister was responding to questions on developments at the SEZ from U Khin Cho, a representative of Pyithu Hluttaw, at a parliament session on February 14.

As at December 2019, the government has permitted 115 companies from 19 countries to operate in Thilawa SEZ. However, three have withdrawn their investment plans, resulting in 112 companies having invested a total of US$1.9 billion in Thilawa so far, U Aung Htoo said. 

The three companies which withdrew include two Japan/Myanmar joint ventures in chemical products manufacturing and shoe production. The third company is a Singapore data center, according  to U Shwe Hein, Secretary of Thilawa SEZ Management Committee.

He said that the two joint ventures were not able to raise sufficient capital to carry out their investments in Thilawa, resulting in them pulling out of the country. Meanwhile, the Singapore company did not receive permission from the authorities to operate, as foreign wholly-owned data centers are not allowed due to national security reasons, U Shwe Hein said.

He added that aside from these three companies, it’s business as usual at Thilawa SEZ, with a steady momentum of investor enquiries coming in.

Thilawa SEZ covers some 2500 hectares and is divided into two zones. Over 100 companies have invested in it so far, with more than half of them being from Japan. Companies in the SEZ include those involved in construction, packaging, garments, food, agricultural products, transportation, automobile and accessory production, pharmaceuticals and electrical products.

(The Myanmar Times: https://www.mmtimes.com/news/three-foreign-companies-withdraw-investments-thilawa-sez.html )

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