By Nyein Nyein
The shareholders of YBS public companies need to wait to receive a dividend payment, said U Phyo Min Thein, Yangon Region Chief Minister.
“We are working together for providing public transport services. We have established public companies for the bus service. The regional government has contributed K35 billion each in two public companies. The shareholders of those companies want immediate dividend payout. The companies cannot earn high profits within three years. Even if they retain profits, they have to reserve for future expenses as they have just started running. The companies might suspend their dividend payments and there might be a waiting period before the dividends are paid,” said U Phyo Min Thein.
“We also want short timeframe for return of capital. We expect a five- to eight-year timeline for return of capital. We will make sure not to lose K35-billion in equity in the incumbent government’s term,” he said.
“As there is still no better option for public transport than bus service, businessmen like to do that kind of business,” said the Chief Minister.
“The Yangon Region government established the Yangon Bus System (YBS) to provide better transport services. Some bus lines might make losses, while some earn good profits. Bus operators cannot run only profitable routes. Therefore, the public company has been organized and the ownership is shared by shares. Earlier, under the All Private Bus Lines Control system, some buses were eyeing only large crowds and there was no systematic bus operation. So, we are changing this,” said Chief Minister.
At present, the Yangon Urban Public Transport Company (YUPT) is the biggest service provider in the Yangon Bus System, providing services to many bus lines. The Yangon Region government has also bought shares in the company, along with about 300 shareholders. But, about 200 shareholders recently asked the Yangon Region government to review the dividend policy of the YUPT, according to the Yangon Region Transport Authority. (Translated by Ei Myat Mon)