New Report Urges Myanmar Companies to Improve Governance and Enhance Competitiveness
Yangon, Myanmar, April 5, 2019—The Myanmar Corporate Governance Scorecard report, published today, assesses the performance of Myanmar companies and highlights areas in which they can improve to become more competitive in local and regional markets.
The report [Link] published jointly by IFC, a member of the World Bank Group, the Securities and Exchange Commission of Myanmar, the Yangon Stock Exchange and the Directorate of Company Investment and Company Administration (DICA), assessed the performance of 24 Myanmar companies in 2018, before the Companies Law came into effect.
According to the report, Myanmar companies scored an average of 30 percent, compared to the ASEAN (Association of Southeast Asian Nations) average of 69 percent. The results reveal that Myanmar companies should focus on key areas such as protecting the rights of shareholders and stakeholders, improving companies’ disclosure, transparency, governance structures, and board composition along with board accountability for company decisions. In addition, the report offers a set of recommendations on how companies can improve governance and enhance competitiveness.
“Good corporate governance is a critical component for the sustainable development of any organization. It is important for Myanmar companies to improve their corporate governance practices whether they are seeking to expand their business, foster stronger ties with international partners, or develop a smooth succession plan,” said Maung Maung Win, Chairperson, Securities and Exchange Commission of Myanmar.
Myanmar companies have already started taking steps to improve their corporate governance. Earlier this week, the Myanmar Institute of Directors (MIoD) together with DICA offered the country’s first Director Certification Program in partnership with the Singapore Management University.
“The Myanmar Corporate Governance Scorecard report is a valuable benchmark for Myanmar companies. Together with the implementation of the Companies Law and the work of MIoD, corporate governance in Myanmar business can rapidly strengthen,” said Jenni Hall, Private Sector Development Lead for the United Kingdom’s Department for International Development (DFID).
Numerous studies have shown that good governance help companies improve performance and boost investor confidence.
“Good corporate governance measures can help Myanmar companies access external financing for growth and expansion,” said Vikram Kumar, IFC Country manager for Myanmar and Thailand. He added, “The practical recommendations in the assessment report aim to help Myanmar companies become more profitable operations and more competitive in Myanmar and regional markets.”
IFC’s work in corporate governance is supported by the Governments of Australia and the United Kingdom.
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In fiscal year 2018, we delivered more than $23 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
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 seven members headed by Chairman cum Deputy Minister of Ministry of Planning and Finance. The Commission is a regulatory body for the Securities Industries responsible for the establishment of the Stock Exchange, and also the formation of a fair, efficient, and transparent market in Myanmar.