Special Economic Zones- It's time for New Zealand to present our case.

AI generated image of a Marsden Point Special economic zone

With the government focused on economic growth yet facing considerable fiscal headwinds, limiting their ability to cut company tax on a broader level, the set-up of focused special economic zones (SEZ's) could help not only to turbocharge our GDP growth, but also to provide targeted support to regions that have long struggled due to isolation and socio-economic deprivation.

 The development of SEZ's can serve not only to drive GDP growth, but also to amortise and support the business cases for long overdue infrastructure improvements to better connect regions to main centers.

It is therefore encouraging to see politicians warming to the concept, with growing discussion around the potential for Marsden Point to become an energy precinct. The government should expand that scope beyond energy, however, to include strategic sectors where New Zealand has — or could develop — a genuine comparative advantage. More on those shortly.

What could an SEZ deliver for New Zealanders?

A practical international example illustrates the opportunity. The Swiss canton of Zug has built an economy generating approximately NZD $40 billion in GDP annually, supporting over 100,000 jobs — all within an urban zone of no more than 30 square kilometres, roughly comparable in size to the Greater Marsden Point area including Ruakaka [source: Canton of Zug Economic Development Office].

Zug's success rests on seven foundations:

1. A low company tax rate of approximately 12%, supported by generous R&D tax credits

2. Investment in world-class road and rail infrastructure

3. Access to high-quality universities with strong R&D facilities

4. Proximity and strong connectivity to Zurich, Switzerland's largest commercial hub

5. Political and financial stability

6. A long-term development strategy insulated from changes in government

7. Prioritisation of high-value industry clusters: IT and technology, life sciences, consumer goods, financial services, and corporate headquarters

Even at half the scale of Zug, a well-designed New Zealand SEZ could deliver approximately NZD $20 billion in GDP and over 50,000 jobs annually.

Why Marsden Point — and why not Oamaru too?

While Marsden Point has rightly attracted attention, there is a strong case for considering a second zone in the South — Oamaru offers compelling advantages that mirror those of Marsden Point.

The case for both locations rests on the following:

1. Port access with room to grow. Marsden Point includes Northport; Oamaru has access to Port Chalmers (109km away). Two zones — one in each island — would create a genuinely national platform for economic development.

2. Infrastructure momentum. Marsden Point already has a solar farm, geothermal development, a four-lane highway under construction, and planned rail upgrades. The foundation is being laid.

3. Proximity to major cities. Just as Zug benefits from its proximity to Zurich, Marsden Point could be reached from Auckland in under 90 minutes via a completed four-lane highway or medium-speed rail. Oamaru sits a short drive from Dunedin, with both cities offering access to leading universities.

4. Regional equity. Greater Marsden Point offers a genuine opportunity to improve economic outcomes for Northlanders, including Māori, who stand to benefit enormously from the employment, business creation, and skills development an SEZ would generate.

5. Lower seismic risk and amenable climate. Both regions offer relative advantages on these fronts compared to major urban centers.

6. Land availability. Both areas offer room for staged development, with the Greater Marsden Point zone capable of expanding south as demand grows.

What would a well-designed SEZ require?

Drawing on international experience, a successful New Zealand SEZ would need to address the following (this is not an exhaustive list):

1. A comprehensive vision and plan. Developed collaboratively with local communities, iwi, entrepreneurs, businesses, institutions, and community organisations — not imposed from Wellington.

2. Global canvassing. Active engagement with target sectors, businesses, and investors worldwide to build interest and secure early commitments.

3. Iwi and community partnership. Robust engagement from the outset — not consultation after decisions are made — to ensure local communities are genuinely invested in the outcome.

4. Education and R&D linkages. Partnerships with regional universities (Massey and the University of Auckland in the North; Otago and Canterbury in the South) alongside global collaborations with institutions such as MIT, LSE, INSEAD, and Stanford to attract high-caliber talent and research activity.

5. Multi-party political consensus. Broad cross-party agreement on policy, planning, and execution to protect the project from derailment in the event of a change in government. This is non-negotiable — without it, long-term investors will not commit.

What should an SEZ offer?

1. A long-term low company tax rate for businesses operating within the zone — a rate of around 10% would make New Zealand meaningfully competitive internationally.

2. An infrastructure levy based on the scale of operations, to help fund ongoing development without burdening the broader tax base.

3. A targeted sector focus, with priority given to high-value industries including:

• IT and technology (SaaS, robotics, AI, fintech)

• Space and defence (Rocket Lab is already demonstrating what's possible)

• High-value consumer goods

• Life sciences and pharmaceuticals (including nutraceuticals and cosmeceuticals)

• Financial services

4. A holistic infrastructure and services plan covering transportation, energy, education, health, recreation, water and wastewater, and supporting commercial services.

New Zealand's unique selling proposition

In an era of rising geopolitical risk, New Zealand's distance from major conflicts is an asset, not a liability. We offer international companies and investors a stable, safe environment with genuine lifestyle appeal for employees and a culture of innovation well suited to trialing and iterating at scale before global rollout.

We do not need to compete on manufacturing. Instead, we can focus on attracting administrative and regional headquarters functions, research and innovation centers, and design operations — areas where our stability and talent base are genuine differentiators.

Some economists argue that targeted zones are unnecessary given New Zealand's small size overall [for a counterpoint, see the New Zealand Initiative's work on regulatory reform]. It is a reasonable challenge. But we need to prove the model works at a micro level first — particularly given fiscal constraints and the need to manage legitimate public concern about short-term tax revenue impacts. Once one or two zones demonstrate results, the case for broader policy reform becomes much easier to make.

The bottom line

The question is no longer whether special economic zones could work in New Zealand. The international evidence is clear. The question is whether we have the political will to move beyond discussion and build something.

In an environment of rising global protectionism and intensifying competition for both capital and talent, the real question is simple: can we afford not to?

Matt Mountfort is an economic commentator and international business specialist. He is the founder of Scale Global (scaleglobalnz.com), an advisory firm focused on NZ export strategy and international market expansion. He studied transitional economics at the Prague University of Economics and Business (VSE), graduating with an MSc (Hons) in International Business and Economics, and has spent his career building export pathways for New Zealand companies into Australia and Asia. Views expressed are his own.