Myanmar's small and medium enterprises will face both opportunity and risk under the incoming National League for Democracy government, industry observers say. In particular, an expected increase in foreign direct investment could separate the strong from the weak.
Two unsuccessful bidders for a Yangon Region government tender have claimed the government decided on the winner before the selection process, and the chair of one of the firms intends to petition the new government.
Drinks manufacturer Loi Hein Company has shelved plans to list on Yangon’s stock exchange, but a series of potential foreign joint ventures means the firm should have no difficulty growing, CEO Sai Sam Htun told The Myanmar Times.
First Myanmar Investment’s chair Serge Pun called a meeting of securities companies this week following a volatile day’s trading in his company’s shares, while Yangon Stock Exchange officials said securities firms must make more effort to explain trading risks to their clients.
A subsidiary of Daiwa Securities called Myanmar Corporate Strategic Advisory will be liquidated in order to allow the Japanese group to focus on its role as an underwriter and broker on the Yangon Stock Exchange, a company official said yesterday.
The power sector in Myanmar over the past five years has been characterised by ambitious plans and unrealised targets. While a few power projects have been completed during the outgoing government’s term, others were suspended or cancelled and dozens more remain in limbo.