Stock Exchange Licenses to be awarded in April “for real this time”

RANGOON — Burma’s Ministry of Finance will begin issuing licenses for financial services on the Yangon Stock Exchange—set to open in October—in April, according to Deputy Finance Minister Maung Mg Thein. “We’re going to start calling on companies from four services to seek securities exchange licenses,” the deputy minister announced on Saturday at the offices of the Union of Myanmar Federation of Chambers and Commerce Industry. Licenses will be granted to underwriting, brokerage, dealing and consulting firms based on investment and clean-spending criteria. Applications will be available on Jan. 19, and interested firms must submit materials to the ministry’s Security Exchange Working Commission by Feb. 27, the deputy minister said. Maung Mg Thein estimated that about 10 public companies are currently in compliance with all requirements and ready to apply, though several other institutions could be included. The list of companies likely to be approved could include Forest Joint Venture Company, Myanmar Thilawa SEZ Holdings, Myanmar Citizens Bank and Yoma Strategic Holdings, according to a financial analyst. Brokerage firms are required to commit to a 7 billion kyat (US$7 million) initial investment before applying, while dealing, underwriting and consulting firms must invest 10 billion, 15 billion and 30 million kyats, respectively. The stock exchange, which is being developed by the Central Bank of Myanmar (CBM) and two Japanese partners, is expected to be a major advancement in Burma’s financial field; offering stability to what has long been an unregulated and volatile investment landscape. CBM’s partners, Tokyo Stock Exchange and Daiwa Securities Group, will own a 49 percent share in the $32 million investment. Daiwa, a Tokyo-based investment firm, has been active in Burma since 1996, when it teamed up with state-owned Myanma Economic Bank—which until 2013 was subject to US sanctions—to create the Myanmar Securities Exchange Center, Burma’s sole organized stock market. Economists have welcomed the development of a more sophisticated trading center, though some have warned that the costs are too steep for Burma’s underdeveloped financial institutions. Senior consultant to Burma’s ministry of Commerce, Maung Aung told The Irrawaddy that the ministry ought to take a more prudent approach to allow for a diverse and inclusive marketplace. “We understand that the amount [of capital required to apply] is in line with international norms, but as an initial step in Burma it’s too much,” he explained. Even the 7 billion kyat benchmark for brokers, he said, is too high and should begin at a lower rate, adding that, “as a developing country, there will be many challenges.” By KYAW HSU MON / THE IRRAWADDY| Monday, January 12, 2015 Original Article here

Final Telecoms Partners in September by Burma telecomm ministry

By KYAW HSU MON / THE IRRAWADDY| Wednesday, September 2, 2015 Chit Wai, deputy permanent secretary of Ministry of Communication and Information Technology, told The Irrawaddy on Wednesday that the winning bidders will be announced by the end of September. Last July, a year after two foreign operators revolutionized Burma’s mobile market, the government called on local companies to bid for the country’s remaining telecom spot. Seventeen local firms have entered the bid to become part of a newly formed public company, Chit Wai said,, and the government is now looking into which have met the prerequisites set by the ministry. Those approved for inclusion in the public company will partner with an overseas firm selected by the ministry. “I can’t say how many local companies will be rejected. That’s why we’re checking details. The committee expects to announce winners at end of the month,” he said. He declined to say which companies applied, however. The ministry requires that firms demonstrate possession of adequate financial capabilities –at least 3 billion kyats (US$2.3 million—as well as enough capital reserves to form a new public telecommunications company. “There’s no limit for how many companies can apply. As long as they’re following the rules and meet the criteria, we will select them,” Chit Wai said. Interested companies do not have the opportunity to choose their overseas counterpart. The successful bidder is expected to accept the selection committee’s decision regarding a foreign partner. The winner is also responsible for providing technical services, market strategies, and a share of both the licensing fees and consulting fees to help in the selection of a foreign partner. In the local telecom market, two foreign operators—Telenor and Ooredoo—and state-owned Myanmar Post and Telecommunication (MPT) have been providing fierce competition by offering various services to users in Burma. Among these services are reduced competitive call rates and attempts to build more towers across the country. Thiri Kyar Nyo, a communication officer for Ooredoo, welcomed the competition, remarking that “it’s good for the country, too, since all operators will try to attract users with new services.” “Moreover, building more towers will bring additional improved services,” she said. In late January, MPT claimed to have reached 11 million subscribers, well ahead of Telenor’s 3.4 million and Ooredoo’s 2.2 million at the end of last year. All three firms are concentrating on expanding telecommunications infrastructure into the country’s northern hinterlands and border areas, with combined funding commitments currently totaling around US$4 billion. By KYAW HSU MON / THE IRRAWADDY| Wednesday, September 2, 2015 Original Artcle here