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THE number of free zones in
Asia is increasing at a rapid pace, according to
World Free Zone Convention chairman Graham
Mather.
“Asia's free zones have steadily gone up to
about 1,000.
“The free zone boosts economic success as well
as foreign direct investment and it has spread
from Europe to Latin America, the United States,
Africa, the Middle East and now Asia which is
seeing enormous growth,” he said at the 7th
Annual World Free Zone Convention last week.
Mather said there were currently 10,489 free
zones globally including export-processing
zones, free ports, bonded warehouses, industrial
parks and special economic zones, which employed
some 63.5 million people, up 50% in four years.
“In India, 366 special economic zones (SEZ) have
been approved in August and the SEZ Act 2005 has
been set up for fast track approval to reduce
bureaucracy and red tape.
“Last month, China announced that its State
Council has approved plans for a fourth free
trade port in Hynan province, with investment of
US$7bil by 2012,” he said.
Mather said Gwadar Port in Pakistan was in its
second phase of development alongside a special
industrial zone carried out by the Singapore
Port Authority.
“In Indonesia, its House of Representatives has
recently agreed to enact a regulation on the
establishment of free trade zones covering three
islands in which all import duties, value added
tax, luxury goods tax and excise duties will be
eliminated,” he added.
He noted that companies have started investing
in a free trade zone at the South and North
Korean border with more than 300 trucks crossing
the demilitarised area daily.
“In Malaysia, the Port Klang Free Zone (PKFZ)
has shown great progress securing over 35
investors in just nine months and targeting 80%
occupancy in five years,” he said, adding that
that there were also substantial free zone
developments in Africa, Egypt, Turkey and
Kosovo.
As far as Malaysia was concerned, Mather said
the establishment of the PKFZ was a good
decision and he was impressed by its rapid
growth, organisational structure and excellent
packages offered.
PKFZ provides a total of 404ha of land of which
259ha was prepared infrastructure land with
facilities such as water, electricity, sewerage
and broadband telecommunications.
It also offers industrial land from one acre
upwards, 512 light industrial units, 500,000 sq
ft of office space, a business-class hotel with
135 rooms and an exhibition centre.
PKFZ chairman Datin Paduka O.C. Phang is
confident PKFZ would achieve the targeted 80%
occupancy rate in five years.
She said to date, a total of 35 companies have
taken up 12% of the total open land lots of
259ha, 4.15% of the 512 light industrial units
and 1% of the 500,000 sq ft leased office
blocks.
The 35 companies have invested about RM725mil in
PKFZ.
“Based on what we have achieved in less than a
year of operation, I am convinced PKFZ will hit
its target within five years,” she told StarBiz.
She said this was due to the options offered by
PKFZ to existing customers to expand their
operations within the free zone.
“Moreover, we are confident of landing another
four major investors by year-end,” she said.
Phang added that although there were about 37
free zones in Malaysia, PKFZ was unique as it
offered an integrated commercial and industrial
free zone. |
