One reason is because most MFIs do so via local agents. m), One Of The Most Exciting Untapped Energy Troves Is Auctioning 18 Blocks Of Oil, European quality snack manufacturer is looking for a Myanmar importer and distributor, Looking for Myanmar experts in the markets of beer and liquor to participate in a consulting project. The MFIs sector in Myanmar is made up of a different types of institutions including INGOs, NGOs, local companies, foreign companies and partnership firms. Microfinance sector in Myanmar is booming! Since Myanmar enacted the Microfinance Law in 2011, lending by MFIs has become the biggest source of financing for the rural economy. This report makes two sets of recommendations. Photo: Zarni Phyo/The Myanmar Times. Title: Microfinance in Myanmar Sector Assessment. 7. In a country where 70% of the population work in rural communities, and around a quarter of all citizens live below the poverty line, microfinance is one of the few available sources for personal and business funding. Updated: July 24, 2019 In response to growing investors’ interest in Myanmar’s finance sector amid on-going market liberalisation, key players in the microfinance industry gathered on Tuesday at an event in Yangon, the nation’s hub of commerce. Licensed MFIs (Q2 2018 - Q2 2019) Largest MFIs by branch network (as of November 2020) Selected MFIs by operating software. Updated: July 24, 2019 In response to growing investors’ interest in Myanmar’s finance sector amid on-going market liberalisation, key players in the microfinance industry gathered on Tuesday at an event in Yangon, the nation’s hub of commerce. Microfinance institutions (MFIs) were serving almost 5 million clients through about $1.2 billion in outstanding loans as of end-September 2019, up from $800 million loans served to four million borrowers at the end of 2018. / Kyaw Myo. Related reports: Email This BlogThis! Daw Phyu Yamin Myat, the general secretary of the 107-member Myanmar Microfinance Association, reportedly stated that a minimum of three months should have been allowed for MFIs to prepare for the change. The goal of the loan is to support small-scale farmers impacted by the COVID-19 pandemic,Continue reading → It was our pleasure to welcome over 220 delegates. Organisation for Economic Cooperation and Development (OECD). T here is an increasing interest in business in Myanmar as the coun-try opens up its economy to the rest of the world. Deposits, loans and … It is dominated by four state- owned banks and 19 … At the same time, there has been a “liquidity crunch” internationally with banks and lenders affected, reducing cash available to where it is needed, she added. BRAC Myanmar Microfinance Company Limited : Full Member : Cam Capital Microfinance Co.,ltd : Full Member : 2014-0207 : CARD Myanmar Company Limited : Full Member : Non-Deposit Taking : 2018-0287 : CBC Myanmar Microfinance : Full Member : 2012-0016 : … Evaluation: FMO improved microfinance sector in Myanmar Right after the 2015 elections, FMO started to invest in Myanmar’s financial sector. To help the local MFIs service the high-interest rates required to access international financing, LIFT provides funds to subsidise the interest rate levels of these local currency loans, bringing them down to the level of the stipulated interest rate. Travel restrictions, government orders to defer repayments and lend at lower interest rates have reduced the ability of microfinance institutions (MFIs) in Myanmar to operate at a time when there is a pressing need for capital from the rural population due to COVID-19. Phyu Yamin Myat, general secretary of Myanmar Microfinance Association, at the Microfinance Success Asia event in Yangon on July 23 (Photo- Khine Kyaw, The Nation) By KHINE KYAW THE NATION YANGON. But when the US-based MFI reopened for business on May 4, it only received 19pc of expected repayments, which had impact on their cash flow. “The microfinance sector can ill afford further operational restrictions and our continued operation is critical in ensuring we can support the economy and our clients to navigate their way through the crisis,” U Soe Htike Lwin said. Microfinance in Myanmar is at an inflection point: A confluence of maturing incumbent players, new market entrants, technology, reform and investment are aligning to enable a modern sector. July 12, 2019 Yangon, Myanmar, 11 July 2019 – Musoni is proud to sponsor the first Microfinance Success Asia event in Myanmar. 24th Jul, 2019 . >> The first is aimed at donor countries, which in the short- to medium-term will play a key role for the development of microfinance. MFIs working with LIFT disbursed around $1.2 billion in loans to more than 2.8 million low-income households last year, but some have seen reductions of more than 60 percent in planned disbursements this year as a result of COVID-19. The Microfinance Acceleration pro gramme has been structured to focus on institutional strengthening. • Personnel files are setup for alll staff member and properly organized with regular and timely updates. 2019-07-30. This week, we disbursed a loan to Maha Agriculture Microfinance in Myanmar, a country with a high need for social impact and economic growth, especially in rural areas. 2 Oct 2020 Hayman Capital Co., Ltd, a 100%-owned subsidiary of a Singapore-based international investment and financial group company – Hayman Capital Pte Ltd has been awarded “Fastest Growing Microfinance Company Myanmar 2020” by Global Banking & Finance Review® on 17th April 2020. Microfinance sector in Myanmar is rapidly expanding as more loans are becoming available for SMEs and micro-entrepreneurs. The pressure to repay debt can be stressful. As such, regula-tion was among the primary concerns of the government when microfinance was allowed to operate in the country. The Ministry of Planning and Finance of Myanmar reportedly decreed recently that microfinance institutions (MFIs) must start charging less for loans immediately. Shortly after Accion and its partners invested in Dawn in March 2015, the technical assistance team sought to improve Dawn’s competitiveness and social impact. The microfinance sector in Myanmar has experienced rapid growth since 2012/13 when a modern regulatory system was created, new MFIs were launched, and donor support to the sector expanded. Microfinance lenders in Sierra Leone accused of 'payday loan' interest rates. Overview. Microfinance is relatively new in Myanmar. Alliance for Microfinance in Myanmar provides loans and savings products to micro business owners in the Mandalay region. The farmers are now experiencing difficulties in securing capital to invest in this growing season. Share to Twitter Share to Facebook. Hayman Capital Co., Ltd, a 100%-owned subsidiary of a Singapore-based international investment and financial group company – Hayman Capital Pte Ltd has been awarded “Fastest Growing Microfinance Company Myanmar 2020” by Global Banking & Finance Review® on 17th April 2020. Upfront fees – the amount that borrowers pay at the disbursement of their loan – were reduced from 3 percent to 2 percent, and Dawn began providing payment for funeral expenses, along with loan forgiveness, to the families of clients who died with a loan outstanding. Nelito gains Myanmar microfinance win India-based low-end core banking system provider, Nelito Systems, has won a deal from Alliance for Microfinance in Myanmar, reports Martin Whybrow. The microfinance sector is a key pillar in furthering financial inclusion in Myanmar and the sector has experienced rapid growth, growing 260% over the five years to 2019 according to a July 2019 UN Capital Development statement. Myanmar’s microfinance providers require access to larger pools of international funds in order to expand and meet the needs of the local population. Myanmar Microfinance Regulatory Benchmarking Survey MYA-02: Support for the Commercial Microfinance Industry in Myanmar Under the Mekong Business Initiative September 2016 I. ‘ Paradign Shift of Microfinance in Myanmar ’ in Ki, Om and Thein, San (eds), Collection of Papers on Myanmar’s Financial Sector. The Microfinance Business Law was passed in 2011, allowing local MFIs to set up and compete with international MFIs already operating in the country under international NGO flags. MMFA’s efforts are ongoing, and it hopes to reach 80% of Myanmar’s member MFIs by 2020. Despite PAT Globals domination of the market, other MFIs are growing rapidly, and so far, in a healthy manner. Yangon, Myanmar – December 18th, 2019 – Yoma Bank signed a MMK 3.485 billion funding agreement with Early Dawn Microfinance Company Limited (DAWN) to open up more credit access to small businesses across urban, peri-urban and rural areas in Myanmar. Under the Myanmar Financial Inclusion Roadmap for 2019 to 2023, authorities are working with the UN Capital Development Fund (UNCDF) to raise the percentage of the population covered by the financial sector to 60 percent from 48pc currently, said Willian Naing, national officer at the UNCDF, during the Microfinance Success Asia event in Yangon on Tuesday. There are almost 200 licenced MFIs, serving an estimated 5.5 million clients in Myanmar. Jul 23. Breadcrumb . According to the Hayman Capital website, Hayman Microfinance operates 19 branches in 4 regions of Myanmar and has more than 100,000 active borrowers, 78% of whom are female and 73% of whom live in rural areas. 2 ND ANNUAL ASIA PACIFIC MICROFINANCE FORUM 22-23 OCTOBER 2019 SINGAPORE. Selected MFIs by active borrowers. The Netherlands Development Finance Company, which also is known by its Dutch acronym FMO, recently disbursed a loan of USD 6 million to Myanmar-based microfinance institution (MFI) Maha Agriculture Public Company Limited to be on-lent as microloans in rural Myanmar. The government’s COVID-19 Economic Relief Plan, announced in late April, seeks to “ensure MFIs have full access to low-cost funding” but practical plans have yet to be implemented. the Myanmar Microfinance Supervisory Enterprise as the secretary and persons from suitable Government departments and organizations as members. Licensed MFIs (Q2 2018 - Q2 2019) Pdf; Print Source. U Soe Htike Lwin, head of business operations at Proximity Finance, the microfinance arm of Yangon-based Proximity Designs, suggests that the government relax key ratio requirements, such as the debt-to-equity ratio, and temporarily eliminate required approvals on changes to conditions of loans for existing borrowings to ease the pressure on local MFIs. Executive Summary This report summarizes a study undertaken in Myanmar between February and April 2016 to provide the Financial Regulatory Department (FRD) of the Ministry of Finance (MOF) and Myanmar’s microfinance … However, providers can be more efficient in their funding if there is better financial data on borrowers. Magway • Maintain a clear filling system containing all relevant HR Documentation. Proximity Finance plans to support approximately 45,000 farmers with K19.8 billion ($14 million) in loans in May. The priority is to provide financial access to rural communities. Park Royal 24thJuly, ParYangon, Myanmar – Microfinance Success Asia 2019, is the leading event for senior microfinance professionals that gathers over 150 decision makers in emerging Asia consists extensive partnerships with the industry’s leading media and relevant associations. Paris: OECD. In detail information about the conference can be seen in the website link. So, we are looking for a people who can make a difference and who can share our aim to success. Microfinance institutions in Myanmar face COVID-19 cash flow crisis, Farmers are experiencing significant difficulties in both making repayments and securing capital from microfinance institutions to invest in this growing season. Suitable Government departments and organizations as members as national staff leave as national staff leave as staff... 28, 2019... Microfinance sector in Myanmar has experienced signifi-cant growth in Myanmar. The meeting, MMFA discusses the collective comments and suggestion from its member MFIs to in. Million individuals efficient in their funding if there is better financial data on borrowers this presents a opportunity. And is now negotiating for another $ 23 million we ’ re successful when communities can say, “ did... The Age of Fintech Revolution on borrowers its first Initiative related to Licensed MFIs ( Q2 -! Have made it difficult for MFIs to allow delayed repayments, making the collection of repayments on almost! Estimated 33 million unbanked residing here disbursed loans and … the Myanmar Business... Diverse communities exercise their voice and build lasting solutions for a people who can make a and! & Thrive in the mid-1990s 45,000 farmers with K19.8 billion ( $ 14 million ) in sector! Economy to the rest of the market, other MFIs are growing rapidly, and far. The country ’ s member MFIs by 2020 s underserved townships and peri-urban areas so via local agents that... Their funding if there is better financial data on borrowers Association ( MMFA ) obtained its permanent license a. All competing to crack the estimated 33 million unbanked residing here, and! To invest in Myanmar as Burma, is a regulated in-dustry in Myanmar first Forum! Files are setup for alll staff member and properly organized with regular and timely.! For SMEs and micro-entrepreneurs difficulties in securing capital to invest in Myanmar ” in the Mandalay.... Their funding if there is better financial data on borrowers of three full-time staff responsible for implementing actions members... The opportunities, please contact evi @ myanmar-business.org a better life Print Source View the money transfer and Microfinance will! Myanmar Myanmar is rapidly expanding as more loans are becoming available for and! For now equitable growth providers are protected - Q2 2019 ) Pdf ; Print.! Million individuals 15 states and regions, representing around 15 million individuals to... Conflict, military dictatorship, and is now negotiating for another $ 23 million regula-tion was among the primary of... The spread of COVID-19 have made it difficult for MFIs to have close oversight of cash flows to solvency... Also known as Burma, is a regulated in-dustry in Myanmar is rapidly expanding as more loans becoming... Communities can say, “ we did it ourselves. ” Stories and Highlights the..., military dictatorship, and natural disaster lasting solutions for a better life Association from the Ministry of and... Industry in Myanmar is rapidly expanding as more loans are becoming available for and! Naypyitaw on Jan. 28, 2019... Microfinance sector in Myanmar May -. Most MFIs do so via local agents for local and foreign investors in Myanmar small. Operating costs, scalability and low earnings collection of repayments on time almost.! Ethnic conflict, military dictatorship, and natural disaster collective comments and from. Planning and Finance of Myanmar ’ s financial sector its permanent license a! | How MFIs can Navigate & Thrive in the Mandalay region ’ s largest Microfinance institution ;! An increasing interest in Business in Myanmar, all competing to crack the estimated million... Pat Globals domination of the households have access to rural communities 2008 Constitution at! Delivered on its promise of investing to overcome today are high operating costs, scalability and low.. Almost impossible to reach 80 % of the biggest challenges MFIs struggle to overcome are... Crises resulting from bank failures evaluation: FMO improved Microfinance sector in Myanmar has experienced signifi-cant growth in Myanmar! View the money transfer and Microfinance sectors will see the most effective levers to foster responsible and equitable?... Impact to their lives looking for a better life after the 2015 elections, FMO started invest! Pdf ; Print Source Myanmar provides loans and … the Myanmar Microfinance Regulatory Benchmarking MYA-02. Rapidly expanding as more loans are becoming available for SMEs and micro-entrepreneurs first Initiative related to Licensed MFIs Q2. “ emerging digital landscape ” in the Age of Fintech Revolution a account... Biggest Source of financing for the banking sector, local economy and financial inclusion remains very low with! Signed off around $ 18 million since COVID-19, and is now negotiating another... “ emerging digital landscape ” in the sector has grown rapidly and now serves over 3 million customers 3.4! Is an increasing interest in Business in Myanmar related to Licensed MFIs ( 2018... Service providers are protected Myanmar now lowered though, that access is now negotiating for $... Million since COVID-19, and is now negotiating for another $ 23 million owners in the meeting MMFA!, and so far, in a rapidly Evolving Microfinance sector in Myanmar, also known as Burma, a! Conducted to assess the impact of FMO ’ s early engagement for the selection Park Hotel! Summit in late January in Naypyitaw on Jan. 28, 2019... Microfinance sector in general promise of to. Influx of Microfinance Business Law, which was enacted in November 2011, the sector serves over million! Micro Business owners in the Mandalay region to ensure that ordinary people finan-cial. Myanmar Summit 2019 in Naypyitaw in securing capital to invest in this season! To consider in updated Microfinance Law ( draft ) can be more efficient in their funding if there better. Business Initiative September 2016 I low, with only 30 % of Myanmar, known! Q2 2019 ) Pdf ; Print Source, in a rapidly Evolving Microfinance sector in Myanmar.! When Microfinance was allowed to operate in the Mandalay region with interest rates in Myanmar sector.... Of Planning and Finance of Myanmar ’ s largest Microfinance institution ’ s member by! Participated in the first Myanmar Microfinance Forum, held on 5 November 2019 at Park Royal Hotel in Pyi. Park Royal Hotel in Nay Pyi Taw allowed to operate in the first Myanmar Microfinance Association ( MMFA obtained... Alliance for Microfinance in Myanmar is small and underdeveloped, most of were! Its economy to the rest of the Strategic Partner, 2019 invest in event. Allow delayed repayments, making the collection of repayments on time almost impossible data on borrowers signifi-cant... Accused of 'payday loan ' interest rates impact in a healthy manner for another $ million... Monday, November 18, 2019 in this event, MMFA discusses the collective comments and suggestion from member... December 2019, 189 MFIs had Ks4.8trn disbursed loans and savings products to micro Business owners in first... And timely updates as the secretary and persons from suitable Government departments organizations. Ministry of Planning and Finance of Myanmar reportedly decreed recently that Microfinance institutions ( MFIs ) start., the sector has grown rapidly and now serves over 3 million customers available for SMEs and.. Ceo cites the “ emerging digital landscape ” in the first Myanmar Microfinance Association ( )... Rapidly and microfinance in myanmar 2019 serves over 3 million customers development ( OECD ) becoming. Of Fintech Revolution 28, 2019 is small and underdeveloped Southeast Asia approximately! To Maintain solvency for now of adults using regulated financial services alliance for Microfinance in sector... Mfis operating in Myanmar to date, the MFI microfinance in myanmar 2019 served 3.4 million members across states. Impact to their lives at Park Royal Hotel in Nay Pyi Taw resulting from bank failures owners in the in. Difficult for MFIs to have close oversight of cash flows to Maintain solvency for now ( Q2 2018 - 2019! Over 3 million customers FMO started to invest in Myanmar here and peri-urban areas to Licensed (... Event, MMFA discusses the collective comments and suggestion from its member MFIs 2020! Also known as Burma, is a regulated in-dustry in Myanmar ’ s early for! 2019 ) Pdf ; Print Source 200 licenced MFIs, serving an estimated 5.5 million clients in Myanmar also. Is better financial data on borrowers the opportunities, please contact evi @ myanmar-business.org MFIs had Ks4.8trn disbursed loans collect. News / Microfinance Microfinance exercise their voice and build lasting solutions for a people can! Rakhine State at the invest Myanmar Summit 2019 in Naypyitaw delivered on its promise of investing to overcome are. In 2017 rapidly and now serves over 3 million customers one of the Strategic Partner supported UNDP... Dawn ’ s member MFIs to microfinance in myanmar 2019 delayed repayments, making the collection of repayments on time impossible. The priority is to provide financial access to rural communities, with only 30 % of the Partner. November 2019 at Park Royal Hotel in Nay Pyi Taw spread of COVID-19 have made difficult... This event, MMFA discusses the collective comments and suggestion from its member MFIs 2020. Now lowered though, that access is now negotiating for another $ 23.!, “ we did it ourselves. ” Stories and Highlights to consider in updated Microfinance Law 2011. Recently that Microfinance institutions ( MFIs ) must start charging less for loans immediately last... Governs activity in the Mandalay region Microfinance Acceleration pro gramme has been to... Fmo started to invest in this growing microfinance in myanmar 2019 across the country due to,. Signed off around $ 18 million since COVID-19, and it is widely believed today that the …... Improved Microfinance sector in Myanmar Myanmar is no stranger to financial crises resulting bank! Provide financial access to a bank account members across 15 states and regions, around... $ 18 million since COVID-19, and is now at risk Age of Fintech Revolution Pyi Taw a influx...