Japan and Myanmar’s have agreed to establish small factory rental spaces at the Thilawa Special Economic Zone (SEZ) in a bid to promote investment among small and medium enterprises (SMEs), according to the zone’s operator.
Under a memorandum of understanding (MoU) signed by the Osaka Chamber of Commerce and Industry (OCCI) and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) 500 to 750 square metre plots inside the zone will be rented to SMEs “of all nationalities”, a press release said.
With Thilawa’s Zone A more than 95 percent occupied, the factory rental spaces will be located in the under-construction zone B of the SEZ, which is due to be completed in mid-2018, said Myanmar Japan Thilawa Development (MJTD), the zone’s operator.
The latest move to attract small and medium businesses will bring “diversity” to the SEZ’s tenant base and will help create 40,000 jobs as part of the zone’s second phase, it said.
“We are pleased that the MoU provides the flexibility that will benefit all small and medium-size companies,” said Takashi Yanai, President of MJTD.
“Attracting and encouraging them is important for the development and diversification of the Myanmar economy.”
Since opening in 2015, Thilawa SEZ has attracted over $1 billion worth of investment from 78 companies in 16 different countries with over half of that investment coming from Japanese companies, according to the MJTD.
The project hasn’t been without its detractors however. Last year NGO EarthWatch International condemned the removal of villagers during the development of Zone A, saying families were moved to areas with little access to clean water, waste removal facilities or farmland.
Source: Myanmar Business Today
