Chairman Statement

We are navigating our businesses through global pandemic crisis, local political and economic crisis at the same time, since 2020-2021 Financial Year is the most challenging year within these two decades. In every crisis, there is an opportunity, if we know where to look. With the unity of MTSH’s board of directors and strong hard working management teams and workforce have proved that we can overcome this challenging situation with positive result even during such challenging year. 2020-2021 earnings are up by 93 percent increased from 4.577 billion kyats to 8.846 billion. Our earnings per share this year is at 218 ks per share which is almost double of what it was last year due to our Company’s good and swift financial management of our reserves. We have also managed to keep our costs down and become more productive workforce resulting in 24% savings from our selling and administrative expenses.

Our investments in Myanmar Japan Thilawa Development Company Limited (MJTD) for the development of Thilawa Special Economic Zone has managed to return a positive result due to its recurring income generate from utility businesses and rental factory business unit. However due to slow down in FDI in the country, new land leases have slow down dramatically resulting in  share of income from MJTD 2.581 billion kyats compare to 8.628 billion kyats last year. Positive point is that 85% of 113 factories from 20 countries factories located in Thilawa SEZ have resume back their operations almost back to normal. We do expect some factories will take longer to resume their operations in such unprecedented times. For MJTD to become more resilient, we have made a direction to automate some of work flows and remote working. MJTD is also looking to replace some portion of our utilities with renewable energy source in the near future, so that not only it will bring financial benefits but also to contribute towards United Nations Sustainable Development Goals, contributing towards better social and environment benefits. Since MJTD started Thilawa SEZ eight years ago, we have attracted 2.1 billion dollar worth of investments and created over twelve thousand direct employment and we believe we will be able to continue attracting investments once international business environment has improved since Thilawa SEZ offers the best infrastructure for factories in Myanmar.

          I would also like to report that, there is new Thilawa SEZ management committee Chairman, U Yan Naing Tun, who is working closely and facilitate for the needs of investors to create a more favorable business investment.

          Thilawa SEZ have always been a symbolic friendship development between Myanmar and Japan in all asepcts of both economic and social development. I am confident that strong collaboration between the two nations will ensure our Thilawa SEZ development more prosperous and enjoy a fast recovery and continuous success of MJTD.

          Our subsidiary company Thilawa Property Development Company Limited (TPD) also enjoy 21% increase in revenue deriving to 1.9 billion kyats and net profit of 1.79 billion kyats compare to net loss of 635 million kyats. It was achieve through 72% of land lease and 13% from rental income and balance 15% from utility and other services income. With the careful management, retraining and restructuring of TPD’s organization structure, also contributed 39% reduction in administrative expense. We are working on plans to attract more residence and visitors to Thilawa Garden City by creating social amenities and beautiful landscape that can’t be enjoy in busy Yangon City. Business Continuity Plan (BCP) is our highest priority especially during this disruptive time with COVID 19 pandemic. We have managed to vaccinate 98% of our 219 strong staffs in our Group. In addition to that, we have coordinated with the stakeholders to vaccinate 11,009 staffs and 645 family members working inside Thilawa SEZ, thanks to the kind arrangement of Thilawa SEZ Management Committee. MTSH have made a commitment to take care of all our staff and their families with regards to COVID 19 infection. This has reassured our staffs and created a stress free environment. We are still maintaining shift work and work from home to safe guard and minimize the spread of COVID 19 within our working environment.

          Although business is in downturn we have continue with our CSR activities as per normal to support our communities. In the education sector, we have donated school supplies to students and gave scholarship and contributed for skill development programs for high school students and young adults. For healthcare support, we have distributed oxygen cylinders and much needed medical supplies and personal protective equipment to protect and combat COVID 19 Pandemic.

          During this financially difficult time, it wasn’t an easy decision for us to propose a dividend for shareholder approval since we have many new projects in the pipeline which we needed to invest for the future benefit of our shareholders. However, our Board of Director recognizes the needs of our shareholders and decided (100 ks) per share as dividend after managing carefully of our future finances. I would like to express my deepest gratitude and thanks to our shareholders for their trust, understanding and promise to continuously develop the businesses that will benefit for our stakeholders.