YANGON: The government of Myanmar said that the religious conflicts in Rakhine will not affect the development of Myanmar's Kyauk Phyu Special Economic Zone (SEZ), located within that state.
That is because the zone, situated in southwestern Myanmar, is one of the most important investment zones for the country, thus the government will ensure that it is safe from religious violence. This assurance is meant to reinforce a government initiative to encourage foreign companies to develop the area.
The clashes between Rohingya Muslims and ethnic Rakhine Buddhists in 2012 have killed 200 and left 140,000 people displaced in Rakhine.
However, the government is out to reassure potential developers about investing in Kyauk Phyu Special Economic Zone, one of three in Myanmar. The other two are Thilawa and Dawei SEZs, both in Southern Myanmar.
Dr Maung Maung Thein, deputy finance and revenue minister and vice chairman of the Kyauk Phyu SEZ bid evaluation and awarding committee, said: "The conflict is not very huge, not a gigantic problem.
"So there are some problems but I think they are not insurmountable problems. It can be tackled in due course. That is one part. Another part is that this area is I think, quite immune from those crisis."
Looking beyond the conflicts, the government insists that the SEZ offers many opportunities, particularly in oil and gas. And with deep-sea port potential, it will enable some of the largest cargo carriers to berth.
Myint Thein, deputy rail transportation minister and chairman of the Kyauk Phyu SEZ, said: "We are a late-comer, late-comers must have a good advantage. Thus, we must establish systemic and sustainable development of our economy.
"We must establish a light industry and (with the environment there being) sea and forest, (we can have a) seafood processing zone. Also, that area is located in an area close to the rest of ASEAN, (as well as the) Pacific Ocean and Bengal Ocean. We can establish a logistics hub."
Kyauk Phyu is also unique compared to the other two SEZs.
Dr Maung added: "Kyauk Phyu is what we call a virgin SEZ. Whereas other SEZs have been developed government-to-government, this is the new one. We have no government-to-government agreement, so this is the biggest opportunity for the investors."
One of the key attractions for the Kyauk Phyu Special Economic Zone is its strategic location as it is said to offer the fastest trade route by sea to countries like China and India.
Such benefits might just overshadow the negative publicity of Rakhine.
Edward Lee, executive director of Pacific Alphine Myanmar, said: "I personally feel there's no concern in there because it's an island by itself and it's not really densely populated. The issue right now is up north of Sittwe, the capital city of Rakhine state and it's also pretty much under control.
"So for industrials, we are looking at any potential future manufacturing or some kind of assembly processing plant there to take advantage of the tax incentive and any other advantages that come with the industrial and economic zone."
The Kyauk Phyu SEZ expects to see an initial investment of US$277 million, with the first phase of development due for completion in 2016.
Source: http://www.news.myanmaronlinecentre.com/2013/09/09/rakhine-conflict-wont-affect-kyauk-phyu-sez-says-myanmar-govt/
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