Rapid Economic Growth Expected in Myanmar
Since its independence in 1948, Myanmar was known as Burma until 1989. The country is located in western Indochina in Southeast Asia; most of the nation's land belongs to the tropical or subtropical zone.
With the goal of developing its economy and under the banner of building a market economy and promoting investment, Myanmar's government is carrying out preparations to rapidly modernize its financial sector, such as by bolstering its financial system and establishing a securities exchange. Recently, in accordance with rapid economic growth and the accompanying rise in domestic corporations' funding needs as well as expanded foreign investment activity, Myanmar expects to see a surge in the amount of funds and data being handled by the Central Bank of Myanmar and other financial institutions.
This gave rise to the following issues: conversion of the Central Bank of Myanmar's accounting system to bring it into compliance with the International Financial Reporting Standards (IFRS) as well as the construction of an environment for promoting smooth central bank operations and maintenance management.
Improving the Efficiency of Accounting Tasks and Achieving International Standardization
Fujitsu built an accounting system that complies with the International Financial Reporting Standards (IFRS) for the Central Bank of Myanmar. The system started operation in April 2016 based on a contract with the Japan International Cooperation Agency (JICA). By systematizing journal entry and including functions for automatically generating accounting entries and all kinds of forms, the new system improves the efficiency of accounting tasks that were previously performed manually. This system has been installed at the head office and all branch offices of the Central Bank of Myanmar.
The accounting system was created by building an application environment using Oracle® E-Business Suite, an integrated ERP package from US-based Oracle Corporation, on a cloud platform that was implemented under the leadership of Daiwa Institute of Research Ltd. in 2012 with Fujitsu's assistance. Backed by consultants with know-how in financial accounting and through collaboration with JICA, the Central Bank of Myanmar, and the International Monetary Fund (IMF), Fujitsu designed functions that were well-suited for actual operations with the goal of making effective use of the Central Bank of Myanmar's existing assets.
In addition, through collaboration with a local systems vendor, Fujitsu carries out training, explains system functions in Burmese (the language of Myanmar), and is building an organization to promote end-users' understanding of the accounting system.
Toward Further Modernization of Myanmar's Financial System
Introducing this system has significantly reduced the burdens on bank employees; for example, they can now finish inputting forms on the same day, whereas previously during busy times, it took until the following day. In addition, by revising the accounting policies, chart of accounts, and processes, accounting work is now implemented through the system in compliance with IFRS. The robustness and reliability of the accounting system has also been improved by deploying mechanisms such as use of a thin client OA environment, system redundancy, and operations monitoring.
Fujitsu opened a branch in Yangon, Myanmar's largest city, in 2014. Together with its partner companies in Myanmar, Fujitsu will expand this new accounting system to private banks and develop a maintenance system to support it.