A study was conducted on the municipal solid waste management system in the city of Yangon, Myanmar (formerly, Rangoon, Burma.) Special emphasis was given to the commercial and residential areas. The city now produces 1510 tons/day of municipal solid waste (MSW) from which Yangon municipal authority collects 484 tons/day, with a collection efficiency of 32%, the uncollected remainder resulting in acute problems, health hazards, and environmental degradation. Major weaknesses are identified in the MSJW collection system for Yangon. The organizational structure is weak, collection methods are ineffective, vehicles are insufficient, and foreign exchange is limited to imported collection vehicles and spare parts from abroad. An attempt was made to find alternative systems appropriate to the present situations for collection improvement. An economic costing procedure was used to find the least-cost option, and comparison between the proposed and existing systems were studied on the basis of cost-benefit analysis. A proposal of a more efficient collection system is forwarded. The proposed system is estimated to reduce up to 42% of the present total expenditure used on the collection services by the Cleaning Department under the Yangon City Development Committee. In the proposed system, a labor-intensive waste collection system, suitable for a developing country, is introduced. More vehicular force, with the container-hoist handling system, is recommended to increase collection efficiency and to promote labor and vehicular productivity.