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Chairman's Report

Dr. IN Channy, Chairman

Myanmar's Economy

Myanmar's economy grew broadly as expected during Fiscal Year 2015/16 (ending March 31), at a healthy pace of 7.3 percent, despite massive floods during July–September 2015. Activity softened during the first half of Fiscal Year 2016/17, but is expected to recover in the second half on account of the resumption of construction in Yangon after a temporary halt for regulatory compliance purposes. The growth of agricultural production was softer than expected. The external environment has been weak due to slowing demand from major trading partners and significant natural gas and other commodity price declines in 2015 and 2016. Macroeconomic imbalances persist, with continuing inflation pressure, an increased fiscal deficit, and a widening external current account deficit.

Taking into account sluggish activity in the first half of the year, growth for Fiscal Year 2016/17 is projected at a slower rate of 6.3 percent. Inflation is projected to be around 7 percent on average for Fiscal Year 2016/17, and the external current account deficit is expected to increase to about 6.5 percent of GDP. Risks to the growth outlook are tilted toward the downside and relate to:

  • concerns over policy clarity;
  • financial sector vulnerability on the back of rapid credit growth in recent years;
  • weak commodity prices and slow export demand;
  • global financial market volatility; and
  • natural disasters.1

1 Source: IMF

Key Players in Myanmar's Financial Sector

There are four State owned Banks, 24 Private Banks, 13 Foreign Bank Branches, and 48 Representative Bank Offices, 170 Licensed Microfinance Institutions which includes five INGOs, 24 NGOs, 29 Foreign Companies, four Partnership Firms and 107 Local Companies. ACLEDA MFI Myanmar Co. Ltd. (AMM) with its operation network in two branch offices and five sub-branches is amongst the 169 Licensed MFIs.

ACLEDA MFI Myanmar Co., Ltd.'s Governance

During 2016/17 there were a number of changes to the governance of the Group. Mrs. Nguyen Thu Ha was appointed as a member of the Board of Directors, and I wholeheartedly and warmly welcome her to the Board. The Board met face-to-face four times in June, September, December of 2016 and March of 2017. Seven resolutions were also approved by E-mail during the course of 2016/17. Each meeting normally lasted one whole day.

Significant Board decisions during the year 2016/17

  • Approved and endorsed to the Shareholders for consent the Financial Statement and Audited Financial Statement as of the end of March 2016;
  • Approved and endorsed to Shareholders for final approval the Annual Report 2015-2016;
  • Approved and endorsed to Shareholders for final approval the appointment of the external auditor as of the end of March 2017;
  • Approved to amend the Terms of Reference for all Board Committees;
  • Approved to withdraw cash deposit at the United Amara Bank and to credit the funds with the Myanmar Investment Commercial Bank;
  • Approved an increase in the fees for members of the Board of Directors;
  • Approved the FMO indicative loan information;
  • Reviewed and approved the Board Whistleblower's Protection Policy;
  • Reviewed and approved the Board Code of Conduct Policy;
  • Reviewed and approved the Board Conflict of Interest Policy;
  • Approved and endorsed to Shareholders for final approval the Budget Plan 2017-2018;
  • Reviewed and approved the Base Salary and Premium increase;
  • Approved the applications for loans from FMO and Triodos in an amount of up to Myanmar Kyat Equivalent of US$ 6 million (Six Million US Dollars) for three years each;
  • Approved amendments to the Credit Policy;
  • Approved the appointment of Mrs. Nguyen Thu Ha as a new member of the Board of Directors;
  • Reviewed and approved the Incentive Policy and its conditions;
  • Approved and endorsed to Shareholders for final approval the appointment of Win Thin & Associates as the external auditor as of the end of March 2018;
  • Appointed an editor of the Annual Report 2016-2017 of ACLEDA MFI Myanmar Co., Ltd.; and
  • Approved to cancel previous and register new Trademark and Logo for ACLEDA MFI Myanmar Co., Ltd. at the Deeds Registration Office in Yangon, Myanmar.

ACLEDA MFI Myanmar Co., Ltd.'s Achievement in year 2016/17

From a performance perspective, we are pleased to report that ACLEDA MFI Myanmar Co., Ltd. has achieved a strong performance. Profit before income tax for the yearend 2016/17 was US$1,752,134; gross loans outstanding were US$15,712,417 with 48,531 active borrowers and the savings accounts balance totalled US$749,212 with 68,758 accounts holders. In 2016/17 net profit after tax was US$1,292,524. Our Head Office in Yangon and all our branches are using in-house Information Technology Systems developed by our parent company, ACLEDA Bank Plc.

In closing, on behalf of the Board of Directors I would like to express our sincere appreciation to our Shareholders for their confidence and on-going encouraging support, and to our management and staff for their efforts that have contributed to more than four years of growth. The Board remains committed to build ACLEDA MFI Myanmar Co., Ltd. as the leading MFI in the Republic of the Union of Myanmar.

Finally, I would like to express my appreciation to all Myanmar government authorities, the general public, and to all of our customers for their continued support and confidence in ACLEDA MFI Myanmar Co., Ltd.


Dr. IN Channy
Chairman of the Board of Directors


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