Laos, Malaysia discuss capital markets and growth
Laos, Malaysia discuss capital markets and growth
Officials from the Bank of the Lao PDR, the Lao Securities Exchange (LSX), listed companies and securities companies have studied the development of capital markets in Malaysia, to gain a deeper insight into their operation.
Speaking at a seminar held in Vientiane on Tuesday, Lao Securities Exchange Commission Office (SECO) Head, Ms Vathana Dalaloy, said the LSX was established on October 10, 2010, and officially opened on January 11, 2011.
Due to the short time it has been operational, the staff still don't have much experience in terms of operating a securities exchange, she said, so this seminar was an important step forward in terms of disseminating information and building knowledge and understanding.
Laos is now working to achieve the set goals under the 7th Five-Year National Socio-Economic Development Plan, she added, and the government has adhered to and implemented all the new directions of the Party and state.
It is now time to move in the direction of industrialisation and modernisation to integrate with the region and the international community step by step, aiming to achieve the Millennium Development Goals (MDG) by 2015 and lift Laos from least developed country status by 2020, Ms Vatthana said.
“To ensure economic expansion and provide investment capital, the government decided to establish the LSX, aiming to raise long-term funds from the private sector, as currently banks only provide short term credit to businesses, which makes it difficult for them to expand with a view towards longer term productivity,” she added.
She said the government initially agreed for two state enterprises - Banque pour le Commerce Exterieur Lao Public (BCEL) and Electricite du Laos (EDL) - to list as public companies and raise funds from the private sector through the stock exchange.
During the seminar, officials learned from the experience of Malaysian experts about the growth and development of capital markets in Malaysia, their role in economic development, as well as capital market supervision, the challenges it poses and the impact of the global financial crisis on world stock markets.
Vice Chairman and CEO of the LSX, Mr Ho Jeong Park, and the Deputy Chief Executive of the Securities Commission of Malaysia, Dr Nik Ramlah Mahmood, were among those in attendance at the seminar.
The seminar was jointly organised by the Lao Securities Exchange Commission Office and the Malaysian Securities Industry Development Corporation.
vientiane times
