The military council has announced it will continue implementing the Kyaukphyu deep-sea port project, which is part of the Kyaukphyu Special Economic Zone (SEZ) in Rakhine State, despite ongoing intense battles with the Arakan Army (AA). This announcement was made by Dr. Kan Zaw, the military council’s Union Minister for Investment and Foreign Economic Relations, during the first meeting of the 2025-2026 fiscal year of the Central Working Committee on Myanmar Special Economic Zones held in Naypyidaw on June 9.
Dr. Kan Zaw stated that the Kyaukphyu deep-sea port project would proceed in accordance with existing laws, rules, and regulations. He also emphasized the need to increase exports from the Thilawa Special Economic Zone and reduce the country’s trade deficit. U Htun Tun, Deputy Chairman of the Central Working Committee on Myanmar Special Economic Zones, expressed gratitude to relevant ministries for their cooperation in successfully implementing both the Kyaukphyu and Dawei Special Economic Zone projects.
However, fierce fighting continues between the AA and military council forces in the Kyaukphyu Township area. The AA has been launching offensives against military council battalions, Danyawaddy Naval units, guard posts, and base camps. While the military council has deployed troops around various locations including Leik Kamaw, Min Tat Taung, Hnan Phet Taung, the Technical Training School area, Thit Put Taung village vicinity, near the naval base, and near the No. 32 Police Battalion, the AA has already captured several strategic positions including the Leik Maw guard post, Min Tat Taung military camp, and Hnan Phet Taung guard post.
In the Battle of Hnan Phet Taung on May 27, Brigadier General Kyaw Myo Aung from the military council’s Infantry Division 11 Headquarters, along with four other officers and soldiers, were killed by AA sniper fire. During the battle near Min Tat Taung village on May 30, the AA captured 15 prisoners of war, including a Deputy Colonel who served as a Regional Operations Commander (First Class). The military council forces are reportedly in disarray due to AA offensives, with troops fleeing while the AA continues pursuit and clearing operations.
Analysts point out that the military council’s claims about continuing projects in Kyaukphyu appear unrealistic, given that the AA’s major offensive to capture Kyaukphyu city could happen at any time. The meeting of the Central Working Committee on Myanmar Special Zones was attended by deputy ministers, management committee chairpersons from Thilawa, Kyaukphyu, and Dawei Special Economic Zones, permanent secretaries, director generals, and other officials, but the reality on the ground suggests a different situation from what was discussed in the meeting.
