Mr. ROUS HENGBUN

CHAIRMAN OF THE BOARD OF DIRECTORS

      In the year 2024, many indicators marked to Cambodia’s strong economic performance. The business sector has also contributed to Cambodia’s prosperity over the past decades, and the Royal Government is confident that this trend will continue into the new year, despite various global crises. Although, the drop down in the construction and real estate sectors in 2024, but under the perspicacious and the matter-of-fact leadership of Samdech Moha Borvor Thipadei HUN MANET, Prime Minister of the Kingdom of Cambodia has prognosticated Cambodia's economic growth of around 5.8 percent in the year 2024, an increase of 5 percent compared to 2023, driven by a recovery in the garment sector, an increase in non-garment manufacturing, and a gradual recovery in the tourism industry. According to the National Bank of Cambodia, Cambodia’s economic growth in 2024 will be around 6 percent, with inflation around 2 percent. Although Cambodia appears to be recovering, the economy still faces a number of risks, including prolonged geopolitical tensions and divisions, global inflation, uncertainty over foreign real estate, climate change, and cyber-attacks. Along with the economic growth forecast, the National Bank of Cambodia’s report also forecasts Cambodia’s inflation rate to be around 2 percent in 2024, similar to 2023 at 2.1 percent and far lower than 2022 at 5.4 percent. The National Bank of Cambodia attributed the lower inflation rate in 2024 to the decline in oil prices and lower inflation in the region and the world. Meanwhile, Cambodia’s microfinance sector has continued to grow significantly and sustainably in 2024. In distinctively, in 2024, the microfinance institution, Samporn Samakum Sahakreas Thuntouch Neung Matjum Kampuchea Plc, has made an efforts and paid attention to promoting the riel in accordance with the instructions of the National Bank of Cambodia. The institution has accomplished a publicity strategy in all forms, such as advertising on Facebook and in various geographical areas that have potential to encourage and attract the use of the national currency, the riel, more widely. In actuality, the institution has provided many special conditions to customers. As of December 31, 2024, the institution's total loan portfolio was US$2,827,367 and the national currency loan portfolio was 1,033,875,900 riel, equivalent to 10% of the total loan portfolio. The Microfinance Institution, Samporn Samakum Sahakreas Thuntouch Neung Matjum Kampuchea Plc, is still working hard to tackle and maintain sustainability in the global economic situation, which is being faced due to the prolongation of the war between Russia and Ukraine and wars in other countries. Furthermore, to ensure compliance with laws, regulations, circulars and other guidelines in the business process, the risk management and compliance department for the institution has sufficient capabilities to monitor and manage risks through specific methods developed to effectively assess the risks faced and the impact of risks. Ultimately, I would like to thank all customers who have supported the products and services of the Microfinance Institution, Samporn Samakum Sahakreas Thuntouch Neung Matjum Kampuchea Plc, with goodwill in the development of the national economy and society as a whole. I would also like to express my sincere appreciation for the efforts of the management and all employees who are highly committed to fulfilling their duties diligently to bring great achievements for the institution to now. As my position of the Chairman of the Board of Directors, I would like to thank all authorities at all levels, especially the National Bank of Cambodia, for providing excellent cooperation and support to our institution in the past and in the future.