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Free Zones Authority is leaving a successful year behind, says Despotovski

Free Zones Authority is leaving a successful year behind, says Despotovski

Skopje, 26 December 2023 (MIA) - Director of the Free Economic Zones Directorate, Jovan Despotovski, described the outgoing year 2023 as a succssful one. For the first time, he noted, the number of 18,000 jobs was exceeded, which is over 11 percent growth compared to 2022.
  

Despotovski told a press briefing on Tuesday that the Free Zones Authority registered a minimum 20 percent growth in gross pay in 2023 compared to last year's average.  

 

According to him, a minimum of EUR 75 million inflow to the Budget is expected on the basis of contributions. There is also growth in net exports, which, he added, will exceed 20 percent.

 

In 2023 alone, Despotovski pointed out, new agreements worth EUR 450 million have been concluded, to create almost 7,000 new jobs.

 

"We are leaving a successful year behind. I am particularly pleased that we achieve the two basic goals we set at the beginning of my term, i.e. job growth and wage growth. This year, for the first time, we exceed the number of 18,000 jobs. This means that we have a healthy trend of job growth, which continues into this year as well. This year we already have over 11 percent of job growth compared to last year. What is also very important and makes me delighted is that we are seeing a significant increase in gross pay compared to the average last year, I am talking about at least 20 percent. I say at least because we are still waiting for the data for December. However, based on what we have with the November data, gross pay within the zones first exceeded the amount of Mden 60,000 and second, it is growing by more than 20 percent, which is five percentage points more dynamic in relation to the growth of wages in the national economy," said Despotovski.   

 

It is important, he added, that there is a continuous increase in wages in the Budget.

 

"All this is the result of the increased quality in the work of the companies themselves. This year we have growth in net exports that will exceed 20 percent, i.e. we are talking about figures that are over EUR 650–700 thousand, money that remains in the country based on the difference between what is imported and what is exported," said Despotovski.

 

As regards to agreements concluded in 2023, he mentioned the Taiwanese company Yageo, the biggest greenfield investment since the country's independence, worth EUR 205 million.  

 

"And the rest of the companies that are already working and hiring contribute to the figure of EUR 450 million. So, with the new agreements, close to 7,000 new jobs are expected to be created this year alone," the Free Zones Authority director said. 

 

At least 95 percent of the people employed in the companies in the free economic zones are from the country, he noted. 

 

"Of course, companies also hire staff coming from parent companies or from other locations, however, the number is very small. First, we are talking about more professional staff, such as engineers. We have launched a campaign to try and keep young people here, it is very important. We have many people engaged in the public sector who I believe should be made available to the private sector. I would be very careful about importing labor. First, let's see what we have at home, and work with that, pay people well, and then think what next," Despotovski said. 

 

Certain projects that the Free Zones Authority had already announced have not been implemented because, according to the director, all institutions do not share the same enthusiasm of work of the Free Zones Authority.

 

"This year we announced projects, but unfortunately, we did not manage to implement them. We operate in a system in which not all institutions and not all actors share the same enthusiasm of work. That is a fact and I have said it on several occasions. I will not name the institutions we have a problem with, but what I can say is that we are not giving up on the intention," Despotovski pointed out. 

 

Photo: MIA