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Special Economic Zones – Spending Review Report

In the early 2000s, government launched the industrial development zones (IDZ) programme aimed at attracting foreign investment and export of value added commodities. A review of the programme in 2007 revealed that the programme had a number of challenges which included: lack of coordinated planning arrangements; insufficient guidance in relation to governance arrangements; dependence on government funding; lack of targeted investment promotion measures; and insufficient marketing and inadequate coordination across government agencies. With these challenges, a case was therefore made to develop a new policy with a wider range of instruments.