Wednesday, June 28, 2017
The Myanmar Times
The Myanmar Times

Securities Exchange eyes 2015 launch

Myanmar still has a long way to go to meet its goal of opening a stock exchange by October 2015, but the upcoming securities and exchange law will be a major step, speakers told a seminar in Yangon on May 7.

“The law is going to be enacted in July,” said U Soe Thein, executive director of Myanmar Securities Exchange Centre, adding that the legislation would help fuel the drive to set up the stock exchange.

Although the timeline for the opening of the national stock exchange is tentative, officials at the seminar, which was about initial public offerings (IPOs), were hopeful that the deadline would be met.

Mr Shinsuke Goto, director of Daiwa Securities Group, said a number of events had scuppered development of the exchange, including the 2003 banking crisis which seriously eroded confidence in banks.

“People and banks have to depend on each other and have trust in one another to make financial reforms,” he added.

Mr Kazuhari Ota, managing director of Daiwa’s Investment Banking Solutions Department, said the Central Bank of Myanmar had signed a memorandum of understanding with Daiwa and the Tokyo Stock Exchange to establish an exchange in Yangon by 2015. The three organisations will collaborate to draft the necessary rules and regulations, as well as develop an information technology system, he added.

“We are aware that this infrastructure alone will not make an attractive stock exchange,” Mr Kazuhari said, adding that it would it would take work to attract companies to list on the stock exchange.

Even though there are many restrictions in Myanmar’s banking sector, Daiwa executives say they remain deeply committed to promoting an IPO market in the country. Myanmar Securities Exchange Centre is a joint venture between Daiwa and Myanma Economic Bank that was set up in 1996.

U Win Aung, president of the Union of Myanmar Federation of Chambers, said a number of federation members have become or are in the process of becoming public companies in order to list on the stock exchange.

Most companies in Myanmar know very little about listing on a stock exchange but that will change by 2015, he added.