Thursday, August 17, 2017

Japanese company to form Myanmar investment fund

Daiwa will set up an investment fund this year to help Myanmar companies to participate in the stock share exchange market by 2015, a company executive said last week.

Mr Takeshi Hosokawa, senior managing director of Daiwa PI Partners Co Ltd, said the company would meet domestic businesses at the Union of Myanmar Federation of Chambers of Commerce and Industry on September 11 to discuss its plans.

“The fund is not only to support financial and technical assistance to Myanmar firms but to boost investment in the stock exchange market, which is being established by Daiwa in Myanmar,” he said.

Mr Hosokawa said he could not put a figure on the size of the fund nor how many exchanges were planned for the country.

“A single stock exchange market is not good for investors. Investors would like to choose a stock market that has strong financial foundations, sound management and good facilities,” he added.

Mr Hosokawa said public companies needed to be set up before they could be listed on the stock exchange. Companies would also need to meet strict requirements as well, he added.

He said Myanmar also needs to set up securities companies to work between investors and the stock exchange market for share trading. According to a timeline prepared by Tokyo Stock Exchange, which is partnering on the project with Daiwa, the design and laws for the stock exchange market are scheduled to be ready by the end of 2012.

“Share ownership papers are not safe and many fakes appear in the market normally,” said Mr Sumiyuki Kazama, from the Daiwa Institute of Research.

“Myanmar’s stock exchange market will operate using scriptless trading,” he said.

Myanmar is preparing for its full entry into the ASEAN Economic Community in 2015 and businesspeople are working to set up public companies to list on the exchange. The number of public companies has increased by 34 percent so far this year, according to Myanmar Investment Commission statistics.

The Central Bank of Myanmar signed a Memorandum of Understanding with Tokyo Stock Exchange on March 29, 2012 to establish a stock market in Myanmar by 2015.