ABOUT US | Chairman's Message
First of all, I would like to inform that as of 2025, FUTABA Microfinance Plc. has been operating its business for 10 years, and also the year that the Institution moved to a new Head Quarter location with a larger and better space to continue providing excellent services to customers and partners. In particular, I would like to express my sincere gratitude to the National Bank of Cambodia and relevant ministries for providing official permission for this moving, which truly recognizes our efforts and importance as a part of supporting the banking and financial sector and the economic development of Cambodia.
In 2025, the global economic situation is still facing geopolitical tensions, the protracted war between Russia and Ukraine, the war between the United States and Iran, which has affected the economies of almost every country in the world, and most recently, the border war from Thailand to Cambodia, and the global spread of cybercrime and fraud through technology systems, which the Cambodian economy suffers from, affecting the country's reputation and may pose risks to the banking and financial system, especially international trade and investment. We see that global economic growth for 2025 is forecast at 3.2%, of which developing countries at 1.6%, emerging and developing countries at 4.2%, and the ASEAN region's economy has decreased by 4.3%, and global inflation has decreased by 4.2%, according to the International Monetary Fund's forecast. The Cambodian economy is projected to grow by 5% in 2025 and inflation to remain at a low 2.5%, driven by robust garment exports and agricultural resilience, despite facing headwinds from high private debt, weak real estate demand, and global trade uncertainties. Inflation is manageable, and Foreign Direct Investment remains strong, though the current account has moved into a deficit.
For the confidence in the banking and microfinance system of Cambodia, it will continue to maintain progress and stability through the support of the public, general customers and domestic investors. At this point, we can be seen that the banking and microfinance sector has indeed been affected by the fact that the National Bank of Cambodia has continued to monitor the financial stability situation, continue to strengthen the legal and regulatory framework, and expand domestic and international cooperation, promote risk prevention and control measures, and introduce regulatory relief measures. In this situation, there is an increase of non-performing loans in the banking and microfinance sectors, and FUTABA Microfinance Plc. has also met a similar increase, requiring efforts to address and implement measures imposed by the National Bank of Cambodia.
Due to the challenges that have affected to the Cambodia’s economy and the banking and financial sector, FUTABA Microfinance Plc., has continued to work hard and take measures to address some risks, especially to further strengthen credit quality and reduce unnecessary expenses in line with its long-term strategic plan. FUTABA Microfinance Plc. has also changed its structure at the board level to continue to check, monitor, and provide recommendations for more effective business operations. Despite this difficult situation, according to the financial report for 2025, FUTABA Microfinance Plc., was still able to maintain our profit of US$232,125 with its total assets of US$15,886,645. Although this profit is not in line with the planned set, it is still a good result that shows the commitment and cooperation of managements, all staffs, and especially the credit team, which has made efforts to manage and resolve customer late in a timely manner.
On behalf of the Chairman of Board of Directors, I would like to thank to our customers who continue to use the institution's services and products in good faith to contribute to the development of businesses and resources for future generations in the Kingdom of Cambodia, especially our Japanese shareholder who always provide financial support, as well as Board of Directors, Chief Executive Officer, Deputy Chief Executive Officer, managements and all staffs of FUTABA Microfinance Plc., for much contribution, work hard, and support to implement and achieve of business strategic as provided by the Institution. Especially, I would like to express my deepest gratitude to thank the National Bank of Cambodia, relevant ministries, and corporate partners who always provide cooperation, support, and recommendations to our Institution on some additional shortcomings, which the institution must pay attention to in order to strengthen the implementation measures and review and manage all work plans more effectively and transparently until now and in the future.
Finally, we would like to blessing you and your family have good luck, good healthy with happiness, wisdom, successful all the businesses, and the New Year to take care of forever.