The Microfinance Supervisory Committee Meeting 2/2025 was held yesterday at the Internal Revenue Department, Office 46 of the Ministry of Finance and Revenue, and attended and delivered a speech by Union Minister Dr Kan Zaw, who is also Chairman of the Microfinance Supervisory Committee.
The Meeting was also attended by Deputy Minister U Han Win Aung, members of the Microfinance Supervisory Committee, officials from the Financial Regulatory Department in states and regions, representatives and officials of the Myanmar Microfinance Association.
The Union minister first highlighted that microfinance companies are providing microfinance services to 2.842 million members in townships, wards, and villages in 15 states and regions as of October 2025. Although the volume of business activity has declined somewhat since the COVID-19 pandemic in 2020, it has recovered since March and April 2025. He emphasized that Microfinance is a socially based business that aims to promote rural development and poverty reduction. However, when reviewing business expenses and income, it is necessary to consider the loan amount to be provided to members because the interest rate charged is slightly higher compared to neighbouring countries. He also noted that the gradual increase in operating costs needs to be addressed; the costs, including capital and operating costs, are considered somewhat high. Therefore, the interest rate charged on loans to members will be reduced to a reasonable rate. On the other hand, he noticed that reports indicate that low-income people in rural areas, MSMEs, and agricultural and livestock businesses still have limited access to financial services from banks, and such restrictions need to be met by microfinance companies. Moreover, they should focus on preventing the resurgence of illegal money lenders. He emphasized that, according to the Four Objectives of the National Defence and Security Council, focusing on the development of agriculture, livestock, basic industries, and manufacturing through MSMEs, it is necessary to focus on ensuring that microfinance services are provided to meet the needs of members. Moreover, he highlighted that microfinance companies and members must comply with rules and regulations of anti-money laundering and countering the financing of terrorism (AML/CFT), and it is necessary to pay attention to security issues, including cybersecurity, and to prevent misuse of online scams. Being microfinance services used for socioeconomic development of members, agriculture, livestock, MSME sector, rural development and poverty alleviation, he guided that the activities should be sincere and serious about providing kind assistance to the members.
Deputy Minister U Han Win Aung then discussed the progress of microfinance companies, the effective supervisory process and coordination of providing services to meet the needs of microfinance companies, and prioritizing capital augmentation issues for microfinance companies that need to replenish additional capital. The Secretary of the Microfinance Supervisory Committee explained the progress of microfinance sector and the matters relating to approve the issuance of licences to two companies that have applied for a microfinance business license, to approve the granting of operating licences to microfinance companies to obtain domestic and foreign loans for the approval of the business expansion of microfinance companies, capital contributions, share contributions, and changes in the Board of Directors.
Afterwards, the committee explained that conducting quality building courses for the development of the microfinance sector, difficulties encountered in collaboration with development partners and implementing microfinance activities, and the matters relating to meeting the needs of microfinance companies.
Finally, the committee discussed and recorded the decisions to allow one local company licensed to operate a microfinance business, one foreign company, two companies licensed to accept deposits, three companies granted permission to increase capital, two corporate life insurance agent permits, and four companies have been granted permission to expand their businesses.
MoFR
#TheGlobalNewLightOfMyanmar