Thilawa SEZ attracts renewed investor interest amidst rising profits and sustainability initiatives

Thilawa SEZ attracts renewed investor interest amidst rising profits and sustainability initiatives
Photo shows part of Thilawa Special Economic Zone
Photo shows part of Thilawa Special Economic Zone
Published 2 July 2024

According to a report from Myanmar Thilawa SEZ Holdings Public Co., Ltd. (MTSH), the Thilawa Special Economic Zone (SEZ) is witnessing renewed interest from investors for land leases and factory rentals.

The Myanmar-Japan Thilawa Development Ltd. (MJTD) was established to carry out industrial zone development, marketing, long-term leasing, and the operation of industrial areas within the Thilawa SEZ. MTSH, a publicly traded company, holds the majority of MJTD's equity and has appointed four directors and four officers to oversee its management.

For the fiscal year ending March 31, 2024, MJTD reported a net profit of USD 1.5 million. The retained earnings amount to USD 56.9 million, with a cash and cash equivalents balance of USD 45 million as of March 31, 2024. The stable environment and high-quality infrastructure of the Thilawa SEZ, along with its special privileges, have led to a resurgence in interest from investors for land and factory leases. The primary sources of revenue include regular operational activities, maintenance services, and water and electricity services, as detailed in the report.

In 2023, Myanmar-Japan Thilawa Development Ltd. (MJTD) began installing solar energy systems to produce electricity. The primary objective of this initiative is to reduce reliance on fossil fuels and to generate renewable energy. The additional solar energy installation will provide five megawatts of electrical power. From the next fiscal year, MJTD expects to generate revenue from its solar power production.

MTSH, a publicly traded company, was established on May 3, 2013, under Myanmar's Companies Act and became the second company listed on the Yangon Stock Exchange on May 20, 2016.

MTSH is strategically focused on investments, infrastructure development, and sustainable practices to ensure future profitability. The company is committed to adapting to the changing economic landscape to capitalize on new opportunities within the Thilawa Special Economic Zone. MTSH aims to support national economic growth and deliver robust long-term returns to its shareholders through sound sustainability policies, as outlined in their recent report.