Myanmar gets new SEZ law

[SeaVisionBurma]

In an effort to draw more foreign interest in Myanmar’s future Special Economic Zones (SEZ), the state-run media last week announced the promulgation of a new SEZ law, superseding the relevant laws adopted by the former military regime in 2011.

From the Myanmar Times by Aye Thida Kyaw

Thilawa SEZ in Yangon, Myanmar. Photo: Irrawadday.org

“The new law seems to decentralise decision-making to the SEZ committee, so that central government is no longer involved. This is probably attractive to investors,” said advocate U Than Maung, adding that the new law provides for a management committee responsible for administration, management and supervision of the zone.

“The committee has to protect citizens’ rights, and solve problems,” he said.

The law allows seven years’ income tax exemption for local and foreign investors and eight years for construction companies in designated areas, while those involved have promised further incentives this year.

Read the full article here: http://www.mmtimes.com/index.php/business/9435-myanmar-gets-new-sez-law.html

[onthemoon]

Good move. I understand the new law won't become effective until next year (2015) though. Has it been approved yet?

Never mind the decentralization: How long does it take to open a SEZ, or to open a company in an SEZ that can take advantage of the privileges?

How much does it cost? Is the process straight-forward?

Just asking.

[DagonKhan]

“The committee has to protect citizens’ rights, and solve problems,” he said.

So they're handing power to a management committee, that's exactly how they run all the other industrial zones. That will mean the usual corruption and some guy begging at your door every week. Not to mention the fact that every time you want something you have to pay them their 'fee' and when the local farmers decide to squat on land they believe is theirs they are nowhere to be seen. To gain these super 'privileges' you get to pay the management fee in US$ which works out at least ten times (if not more) than what the locals pay. The only time when the industrial estates here 'worked' was when the Ministry of Construction themselves managed them, ironic really.

SEZ's my arse, they're just industrial estates on confiscated land. Companies would be better off applying for their own MIC permit and securing their own land and avoiding all the marvellous "advantages" these money spinners SEZ's have to offer.