A second stock exchange may soon arrive in Myanmar. The government plans to set up a pre-listing board for publicly traded companies that do not yet qualify for the Yangon Stock Exchange, U Maung Maung Win, chair of the Securities and Exchange Commission, told the Myanmar Times. He said the new exchange would fill a market gap between the YSX — which currently has only six companies in its bourse — and companies that do not yet qualify. He added that it would especially benefit small and medium-sized enterprises. (In Myanmar, a company may register as “public” even though it does not qualify for listing on the public exchange.)

If established, a pre-listing board would be another major step in Myanmar’s gradual reform of its investment infrastructure. Although the COVID-19 pandemic has dampened trades, the YSX had been growing, gaining its sixth company, Ever Flow River Group, this year. Furthermore, this year foreigners were allowed to make trades in certain listed companies. In July, SEC commissioner U Htay Chun told the Bangkok Post that the Commission is developing new ways for local and foreign investors to trade stocks and bonds despite the pandemic recession. “It is fair to say that we are not hit as badly as some developed markets,” he said.

Outside of the stock market, the government has digitized and streamlined several aspects of the company registration process and opened new opportunities for foreign investments. For example, foreign investors and companies are now allowed to hold a limited stake in Myanmar banks.