Myanmar Monitor


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Economy, Investment and Trade

Myanmar’s first true IPO test for country’s stock market
(5 December 2017) TMH Telecom gained approval to go public on Myanmar’s stock market and will become the fifth corporation to do so. However, It will be the first to raise fresh capital through an initial public offering. The four companies already on the bourse have floated only existing shares, generating no new capital. The raising of fresh capital by TMH will serve as a test case for the Yangon Stock Exchange regulators, as well as for brokerages and listed companies. Last month, the country’s legislature enacted a new Myanmar Companies Act, which allows foreign capital to invest a maximum of thirty-five percent in domestic businesses.
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Fastest improvement on Myanmar’s manufacturing PMI since May
(1 December 2017) The Nikkei Myanmar Manufacturing Purchasing Managers’ Index (PMI) rose to 51.6 in November from 51.1 in October. This indicated a second successive month of growth in manufacturing sector and this has been highest reading since May 2017. Economist at IHS Markit Sian Jones added that on a more positive note the output expectations among Myanmar’s manufacturers were the highest since January. This has led to an increase in optimism for greater investment and stronger client activity.
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Myanmar, China launch economic corridor cooperation
(2 December 2017) Furthering Naypyitaw effort to strengthen ties with Beijing, Myanmar State Counselor Aung San Suu Kyi and Chinese President Xi Jinping agreed to build an economic corridor between the two countries. In achieving peace and stability, Suu Kyi, stressed the importance of infrastructure as such electricity and transportation networks. However, no details have been provided about the proposed economic corridor.
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Ride mobile apps to regulate by Myanmar
(5 December 2017) Myanmar’s Minister of Electricity, Industry, Transport and Transportation, Daw Nilar Kyaw said that the government will issue new rules to regulate the taxi industry in the country. Uber and Grab first entered the Yangon market followed by Hello Cab and Oway Ride. In order to ensure fair competition between the four operators in this space, the government will work with the Yangon Region Transport Authority to set new rules to regulate the sector. “The operators are competing to offer the lowest fares to customers. But this could lead to the collapse of the local taxi service. So, the sector must be regulated to ensure a level playing field,” Daw Nilar Kyaw said.
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New industrial zones planned for 11 townships outside of Yangon
(6 December 2017) Chief Minister of the Yangon Region Government U Phyo Min Thein, recently met with representatives of parliament and the departments of relevant ministries to discuss plans to develop the 11 new industrial zones. The plan is expected to increase the flow of foreign direct investment into Yangon and create more job opportunities for the locals. Several companies involved in constructing the industrial zones also commented that there is a must for the government to first ensure sufficient and reliable infrastructure access to the affected area. There are currently over 30 industrial zones in Yangon and the largest one is the Hlaing Tharyar industrial zone.
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