Board Director message

Board Director message on First Finance Annual Report 2023.

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Cambodia’s economic outlook?

Cambodia’s economic growth in 2023 will be slightly lower than earlier forecasts, down to 5.3% from 5.5%, mainly due to slower-than-expected growth. The Asian Development Bank (ADB) maintained the country’s 2024 growth forecast at 6.0%. The ADB notes that exports of garments, footwear, and travel items declined by 18.6% in the year 2023. This was partly offset by a 22.9% increase in exports of manufactured goods other than garments, such as automotive parts, solar panels, and furniture.

Risks to the outlook include sluggish growth in advanced economies, lower tourist arrivals and foreign direct investment inflows, prolonged tightening of global financial conditions, rising energy prices, concerns over high private debt and domestic financial stability, and extreme weather exacerbated by climate change.

Financial sector in Cambodia?

The National Bank of Cambodia (NBC) actively supports the government’s policies and maintain macroeconomic stability by implementing a flexible and prudent monetary policy to support economic growth. This is done in accordance with prevailing domestic, regional, and global economic conditions. Price stability and exchange rate stability has been maintained by NBC. Inflation has been within the manageable range of 3%. The NBC continues to improve payment systems to be more effective, secure, and reliable to reduce operation costs and facilitate the growth of economic and financial operations.

Cooperation with UnionPay International, Thailand, Lao PDR, and Vietnam have been initiated by the NBC, to explore the immense potential for cross-border QR code payments for both individual users and merchants, as well as its benefits to the real economy.??

Building long-term strengthening and stability growth?

Over the last two years, First Finance has multiplied double business size, customer base, number of employees and loan portfolios. We have delivered strong and consistent long-term business partner’s interest. We have learned a lot from the challenges and difficult period of the past several years that will make First Finance become a strong and stable institution for the coming years. Our responsibility to ensure the trust of our business partners and customers is ingrained in First Finance’s culture.

Robust risk management

We will continue to review management’s plans to ensure business opportunities are balanced against sound risk management priorities and an effective First Finance internal control framework. We actively engage with management to ensure that a strong risk culture is supported at all levels of First Finance’s operations. We are also ensuring that First Finance’s risk management function is well managed. We approved the risk management policy, oversee strategic risk management, and regularly meet with the risk management team to discuss First Finance’s control environment and risk management.

First Finance has continuously developed and strengthened its operation to face market movement, a highly competitive operating environment, and difficult periods. The Board and shareholders have confidence that First Finance’s leadership, strategy and people will enable First Finance to continue its high level of performance for all business partners, customers, and stakeholders. I’d like to recognize the efforts of First Finance’s employees, whose great work ethic and passionate dedication are key contributors to First Finance’s success, and show remarkable commitment to our business partners, customers, and stakeholders.

On behalf of the Board of Directors, I wish to thank First Finance’s management and staff for their hard work, dynamism, and strong dedication to growing the business in harmony with customers’ growth. I also wish to thank the Board of Directors, shareholders, customers, suppliers, the Royal Government of Cambodia, and especially the National Bank of Cambodia, for their continuous support and advice.