Improvement in ease of doing business
Myanmar has huge potential to further climb the World Bank's ease of doing business ranking, judging from its progress up the scale after improvement in just three areas.
In the World Bank’s report on “Doing Business 2016: Measuring Regulatory Quality and Efficiency”, Myanmar moved up from 177 last year to 167 among 189 economies. This followed a one-rung elevation last year.
Among the 10 areas measured, Myanmar showed the biggest improvement in starting a new business. From the bottom of the league in 2015, it jumped 29 places to 160. Now, it requires only 11 procedures to start a business, though this is still high compared to seven steps across East Asia and the Pacific.
However, they can be completed in 13 days, only half of the time in the region. It takes 8.3 days in OECD countries.
“Myanmar made starting a business easier by eliminating the minimum capital requirement for local companies and streamlining incorporation procedures,” the World Bank said.
Dealing with construction permits also showed a huge improvement, 10 places to 74. Responding to more electricity supply, ease in getting electricity improved six places to 148.
Its ranking declined in two areas – three places to 174 in getting credit, and 11 places to 84 in paying taxes.
Companies spend 188 hours on average per year on tax payment activities, against the average of 201.4 in East Asia and the Pacific.
It showed no change in the remaining five areas – registering property, protecting minority investors, trading across borders, enforcing contracts and resolving insolvency.
The quantitative indicators are what policymakers use to upgrade their economy’s regulatory environment for business.
