Yangon, Myanmar, June 21, 2017¯IFC,
a member of the World Bank Group, and
the Securities and Exchange Commission
of Myanmar (SECM) are holding a forum today to help listed firms raise
transparency and disclosure standards in company reporting. Studies show
that greater transparency can bolster investor confidence and improve companies’
access to capital.
At the forum, speakers from IFC, SECM, and the Myanmar Center for Responsible
Business will share their views on how Myanmar companies can benefit from
improving disclosure practices; they will also explain the differences
between reporting to regulators, the stock exchange, and the investing
than 80 participants, including representatives from the Central Bank of
Myanmar, the Directorate of Investment and Company Administration as well
as securities and listed companies, are expected to attend the forum.
“The Yangon Stock Exchange is still at an early stage of development.
Listed companies and those planning to list in Myanmar can significantly
benefit from a better understanding of best practices to raise their transparency
and disclosure standards,” said SECM Commission Member U Htay Chun.
Regulators, stock exchanges, and investors around the world have been urging
companies to disclose both financial and non-financial information in a
timely manner to enable investors to better assess investment risks and
make more informed decisions. Studies on emerging markets found that better
governance is associated with higher valuations of firms. Investors find
companies with fuller disclosure more trustworthy and less risky for them
to invest in, thus lowering the cost of capital that then translates into
“The concept of ‘sustainable investing’ is gaining prominence, with
a growing number of investors looking not only at a company’s financial
results but also the impact its operation has on the environment and society,”
said Vikram Kumar, IFC Country Manager for Myanmar. “To attract foreign
capital, Myanmar companies need to work hard on raising their corporate
governance and disclosure standards. This will also ensure the sustainable
development of Myanmar’s capital market.”
Today’s forum is part of IFC and SECM’s cooperation to strengthen corporate
governance regulatory standards and practices in Myanmar. The Myanmar government
is keen to further develop the Yangon Stock Exchange, which was established
in December 2015, and boost the ability of local companies to raise capital.
It is working on new legislations and updating existing ones to improve
risk governance in companies and strengthen shareholder protection.
IFC launched its Corporate Governance Program in Myanmar in February last
year. The program is implemented in partnership with the Australian Department
of Foreign Affairs and Trade, and the U.K. Department for International
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence to create markets and opportunities in the toughest areas
of the world. In FY16, we delivered a record $19 billion in long-term financing
for developing countries, leveraging the power of the private sector to
help end poverty and boost shared prosperity. For more information, visit
About the Securities and Exchange Commission of Myanmar
The Securities and Exchange Commission of Myanmar (SECM) was formed on
19 August 2014, according to the Notification No.64/2014 of the office
of Union Government. It is composed of 7 members headed by Chairman cum
deputy minister of Ministry of Planning and Finance. The Commission is
regulatory body for the Securities Industries responsible for the establishment
of Stock Exchange, and also formation of a fair, efficient, and transparent
market in Myanmar.