Mae Sot SEZ could benefit local workers

The decision by the Thai government to declare a special economic zone at the border town of Mae Sot could bring benefits for local Myanmar workers.

And another SEZ could be set up on the Myanmar side of the border, at Myawaddy, to help boost the national and local economy, say business leaders.


Dr Mg Mg Lay, vice chairman of the Union of Myanmar Federation of Chambers of Commerce and Industry, said last month’s decision could bring benefits to both countries. “The establishment of an SEZ in Mae Sot could help the ASEAN Economic Community develop and create more jobs. Residents can find work there, without the need to go to the city.”

the new Thai regulation sets a daily minimum wage of 300 baht (about K8500).

“Workers from Myawaddy in Kayin State, on the Myanmar side, could also earn that much later on if the demand for labour is competitive. We have a plan to set up another SEZ in Myawaddy as well,” Dr Mg Mg Lay said, which would benefit the economy and help reduce poverty.

Mr Ikumo Isono, an economist with the Economics Research Institute for ASEAN and East Asia, said the economic zone could stimulate trade between the two countries and help to provide high-quality products to Myanmar, such as processed foods and some garments.

However, the economic zone would mainly benefit Thai companies and migrant workers from Myanmar. Most of the products from the economic zone will be for the Thai domestic market and other countries, he said.

If the economic zone can expand capacity and enhance productivity, the Mae Sot garment industry would benefit, he said. Many companies in Mae Sot employ migrant workers from Myanmar, he added.

“The new 300-baht minimum wage could give Myanmar the chance to invite companies from the Thai side to Myanmar. Economic zones on both sides can work together,” he said, adding that the Myanmar zone must have good trade and transport facilitation measures. The Hpa-an Industrial Zone in Kayin State might also work if Myanmar can develop a good logistics infrastructure between Myawaddy and Hpa-an, he said.

The Bangkok Post reported that the new zone will be opposite Myawaddy and will cover more than 8.96 square kilometres next to the Moei River, which separates Thailand and Myanmar. Transport infrastructure, shipment and distribution centres, duty-free areas, bonded warehouses, one-stop service facilities, single-service inspection and customs checkpoints will be part of the special economic zone.

Mae Sot’s border trade value was recorded at 30 billion baht (US$1 billion) last year, said the newspaper.Mr Masami Ishida, vice president of the Bangkok Research Centre, under the Institute of Developing Economies and Japan External Trade Organisation said much depended on the rigidity of immigration controls.

Strict controls would prevent Myanmar workers from crossing the border, which could encourage companies in search of low-cost labour to invest in the Myanmar side at Myawaddy. Light immigration controls would allow workers to move freely cross the border, he said.

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/4064-mae-sot-sez-could-benefit-local-workers.html