MIoD, together with IFC and the Myanmar MicroFinance Association, organized a two-day corporate governance training event for microfinance institutions on June 12-13. Around 30 board members and senior executives from microfinance institutions discussed the challenges they faced, learned about international best practices on corporate governance, and gained insights into developing plans to strengthen their lending practices.
The training aimed to help Myanmar microfinance institutions enhance their performance by adopting responsible and sustainable financing practices, subsequently helping them to expand lending to microenterprises and the poor.
Myanmar family businesses learned about effective corporate governance structures that would help them sustain their growth at a breakfast briefing organized by MIoD today. Global statistics show that only one in three family businesses survives the founder. Improved governance will boost the performance of businesses, making them more attractive to investors and increasing their long-term sustainability.
At the briefing, world-leading family business governance expert Professor Joseph P. H. Fan provided an overview of key challenges facing family businesses in Asia and how to address them.
“It is critical for Myanmar family businesses to learn to professionalize their management teams and set up the right governance structures to cope with the demands of a growing business,” said Daw Win Win Tint, an MIoD board member and CEO of City Mart Holding Co., which started as a single supermarket to become one of the largest retail chains in Myanmar. “This will help build a sustainable operation, reduce the possibility of family feuds, and ensure successful succession across generations.”
Three dozen company directors and senior executives attended MIoD’s inaugural training event, the Audit Committee Master Program. The two-day program introduced the duties and responsibilities of an audit committee, a key oversight function in a company’s governance structure to ensure the integrity of the financial reporting process and audit quality; participants also learned about best practices to improve the effectiveness of the audit committee and develop a robust risk governance framework.
U Aung Than, Vice Chairman of Shwe Taung Group and one of the participants, said the program helped him gain an in-depth understanding of the key functions and responsibilities of the board and the audit committee.
“More business executives should undergo this type of training, which will help them understand important corporate governance concepts and make use of such concepts for improvements at their firms. Such changes will help enhance operational efficiency and lead to the creation of sound governance structures to raise transparency and disclosure,” he said.
Other participants included representatives from First Myanmar Investment Co., Great Hor Kham PLC, KBZ Bank, Myanmar Agro Exchange Public Ltd., Myanmar Awba Group, Myanmar Oriental Bank Ltd., Myanmar Thilawa SEZ Holdings Public Ltd., Serge Pun & Associates Ltd., and Yoma Bank.
The new Myanmar Institute of Directors (MIoD), an independent, private sector-led organization to promote corporate governance standards and best practices in Myanmar, was launched on March 21. MIoD Chairman U Aung Zaw Naing introduced the Institute’s board members, while Dr. Bandid Nijathaworn, CEO of the Thai Institute of Directors Association, and Joyce Koh, Executive Director of the Singapore Institute of Directors, shared their experiences. The event was conducted with support from IFC and the governments of Australia and the United Kingdom.
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In celebration of International Women’s Day 2018, the Securities and Exchange Commission of Myanmar and the Yangon Stock Exchange joined more than 60 stock exchanges around the world to “Ring the Bell for Gender Equality.” The initiative highlights how the private sector can spur women’s participation in the global economy and promote sustainable development. Now in its fourth edition, the “Ring the Bell for Gender Equality” event is a partnership of IFC, Sustainable Stock Exchanges Initiative, the UN Global Compact, UN Women, Women in ETFs, and the World Federation of Stock Exchanges. The event was conducted with support from IFC and the governments of Australia and the United Kingdom.
The Securities and Exchange Commission of Myanmar (SECM) and IFC have been assessing the corporate governance practices of around 30 Myanmar companies against international standards to help them improve performance and risk management.
In January and March 2018, IFC, SECM, the Yangon Stock Exchange, and the Directorate of Investment and Company Administration organized two workshops for Myanmar companies. IFC experts led participants in evaluating the corporate governance practices of listed Myanmar companies using the Association of Southeast Asian Nations (ASEAN) Corporate Governance Scorecard, a regional benchmark that rates performance on areas such as equitable treatment of shareholders, responsibilities of the board, and disclosure and transparency. The organizers held a follow-up training in March for companies participating in the scorecard.
“Corporate governance assessments can help Myanmar companies analyze their performance, identify areas for improvement, and bring their practices in line with international standards,” said U Htay Chun, a Commission Member of SECM. “This will help companies set realistic goals for reform, improve their performance, and attract more investment.”
