August 19, 2016

The Yangon Stock Exchange: a step in the right direction

WITH the country’s first-ever stock exchange market making its debut on 9 December in the commercial capital of Yangon,  companies are keen to list shares in the belief that the newly-inaugurated financial institution has all the promise of a modern exchange.
It seems like a dream come true, given the country’s sluggish economy and transitional period. Nevertheless, optimistic analysts attribute the rise of the exchange market to a product of the government’s commitment to democratic reform.
Recent years have seen an unprecedented increase in foreign investments in the extractive industries, even though there is no telling when foreign investors will be granted access to the Myanmar bourse.
One possible reason is that the country is in the middle of drafting its companies law, according to U Maung Maung Thein, Deputy Minister for Finance and also Chairman of the Myanmar Securities and Exchange Commission. In addition, foreign financial experts argue the unlikely start of the stock market until the new government takes office.
There is no rush as the people of Myanmar are green to the stock exchange. Frankly,there is still a lot more work to create the right market infrastructure, write financial laws and promote our market-structure expertise in collaboration with economic experts from regional and international economies.
It is time for our country’s economy to gain its poise for recovery. According to the Asian Development Bank, our economy is set to expand by around 8.3 percent this year following a flood of direct foreign investment. The Yangon Stock Exchange has set off at a slow pace, yet it is definitely a step in the right direction.


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