ABOUT US | Chairman's Message
The global economic situation is still facing geopolitical tensions, geopolitical and economic divisions, and prolonged the Russia-Ukraine war, and Cambodia’s economy has also been affected. We see that global economic growth for 2024 is expected to reach 3.2%, of which developing countries increased by 1.7%, emerging and developing countries increased by 4.2%, and ASEAN economies increased by 4.6%, according to the International Monetary Fund’s forecast. Meanwhile, global inflation has decreased to 5.7% for 2024. For the Cambodian economy, for 2024, it is estimated to grow at a rate of 6% and the inflation rate is only 0.8%, which is a low rate. The National Bank of Cambodia will continue to implement a flexible and prudent monetary policy through its main tools to maintain price stability and support economic activity. In this context, we see that the Royal Government of Cambodia has effectively implemented its first phase of the Five-Point Strategy by introducing a series of measures to accelerate basic diversification, reform, use of digital systems, and promote the strengthening and better functioning of certain sectors such as construction, real estate, tourism, and agriculture.
For confidence in Cambodia's banking, microfinance and leasing system continues to maintain progress and stability, despite being affected by some countries in the region with rising debt and credit risks arising from the real estate sector. According to the annual report 2024 of the National Bank of Cambodia at the end of 2024, the total assets of banking and financial institutions increased by 7% to 369.4 trillion riels (equivalent to 91.1 billion US dollars), with ongoing loans increasing by a low rate of 3% to 242.9 trillion riels (equivalent to 59.9 billion US dollars), while deposits increased by 16.3% to 230.9 trillion riels (equivalent to 57 billion US dollars). In the banking system in Cambodia, there are 59 Commercial Banks, 9 Specialized Banks, 4 Deposit-taking Microfinance Institutions, 85 Microfinance Institutions, 114 Rural Credit Institutions, and 13 Leasing Institutions, 4 Third Party Processors, 30 Payment Service Providers, 1 Credit Bureau Cambodia, 5 Foreign Banks representative office, and 3,327 Money Changers. At this point, we can see that the banking and microfinance systems have also been affected. The National Bank of Cambodia has continued to monitor financial stability by strengthening financial sector risk analysis, analyzing the linkages between the economy, the physical sector, and the financial sector, and has put in place regulatory relief measures. However, the banking system continues to maintain its capital and liquidity resilience and conducts banking operations prudently. The microfinance sector in Cambodia has played and continues to play an important role in contributing to the promotion of sustainable finance, environmental protection, and green economic and social development, especially in reducing poverty in rural areas.
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. In 2024, 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 2024, FUTABA Microfinance Plc., was still able to maintain our profit of US$307,018 with its total assets of US$15,549,479. This result 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 Chairperson 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 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's Board of Directors. 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 to strengthen the implementation and review and manage all work activities 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 angels to take care of forever.