Steel firm not ready
Re: "Myanmar plant snag to cost Milcom B100m", (BP, April 23)
Your report said the SET-listed, Thailand-based steel company Milcom Steel Plc expected to suffer 100 million baht in losses due to a delay in the opening of its new plant in Myanmar, at the Thilawa Special Economic Zone near Yangon.
Thilawa SEZ was developed under the previous administration of U Thein Sein in 2013-15 as a model SEZ, designed to eliminate red tape, streamline procedures and set high standards of transparency in the approval process, in line with international practices.
At Thilawa SEZ, investment licences are normally granted within two weeks of an application while company incorporation/registration takes only one day at its One Stop Service Centre.
Despite transparent procedures and the relatively short start-up time, the report implied Milcom Steel's projected loss was due to delays on the part of the SEZ's management committee.
In reality, Milcom's application for an investment licence was approved within seven days. Similarly, its Environmental Conservation and Protection Plan was approved within six days and building permit was approved within 17 days.
Milcom must still undergo a couple of final inspections. However, unless the company officially asks -- or, in other words, unless the company is ready, these inspections cannot be conducted.
As of late April, Milcom did not appear ready and had not asked the management committee for the final inspections.
Thus, it clearly was not prevarication by the management committee but delays at Milcom itself which have delayed the start of operations at the new plant. I am concerned your report about Milcom could create misunderstanding among investors and undermine the image of what is clearly an exemplary SEZ in Myanmar.