The Yangon Stock Exchange (YSX) will begin trading in early December, Myanmar’s deputy finance minister Maung Maung Thein said on October 13. Initially slated to launch this October, the decision was made to open the trading floor only after the country’s general elections on November 8.
A few months after the YSX opening, which is expected in the first or second week of December, Myanmar will make the exchange accessible to foreign investors, the deputy finance minister added.
The country is also in the process of getting a credit rating from international rating agencies which will enable foreign investors to assess the country’s credit-worthiness and pave the way for potential bond deals.
Despite the political uncertainty, the deputy minister said he is confident the launch of the stock exchange won’t be derailed.
“Whoever wins in the elections, it will not demolish the free-market economy that we’re practicing now; whoever wins will not destroy the democratic institutions,” he said.
The election date has been at stake as of late because of severe flooding in the country. But also on October 13, state-run television announced that the polls will go ahead as scheduled.
Meanwhile, Myanmar’s economy seem to be doing well. Aung Tun Thet, economic adviser to Myanmar’s President, in a recent interview with CNBC said GDP may grow by 10 per cent in the financial year through March 2016 as Myanmar revamps its infrastructure and tourist inflow picks up. The Asian Development Bank estimates that the economy grew by 7.7 per cent in calendar year 2014.
Foreign direct investments are likely to climb 25 per cent from a year earlier to $10 billion, Thet said, giving a much-needed boost to the economy that remains one of the poorest countries in the region. Despite rapid growth, Myanmar’s infrastructure remains creaky, as does the healthcare and education system, and a quarter of the population keeps living below the poverty line, the Asian Development Bank estimates.
SOURCE / Investvine
