「綠色」Green

「普惠」Inclusive

「賦能」Empowering

「綠色」Green

「普惠」Inclusive

「賦能」Empowering

Cambodia Weekly Financial News April 08 ~ 12, 2024 08 April 2024 SCB Economic Intelligence Center pegs 6 percent FDI growth for Cambodia  The SCB EIC is the Economic Intelligence Center (EIC) unit of the Siam Commercial Bank Public Company Limited (SCB), headquartered in Bangkok, Thailand. The last SCB EIC report expects ASEAN CLMV (Cambodia, Laos, Myanmar, and Vietnam) nations, to witness accelerated economic growth in 2024 due to increasing foreign direct investment. According to the study, the rise in investment for the CLMV region, including Cambodia, is backed by a recovery in global exports and tourism in 2024 compared to 2023, which can be expected to bolster domestic demand through a labor market recovery within CLMV nations generally. These four CLMV nations are identified as having lesser overall economic development than the other member states of ASEAN, such as Malaysia, Singapore, the Philippines and others. Nonetheless, CLMV countries, as members of ASEAN, have unique advantages regarding labor and natural resources compared to some other players and show significant potential for the future as growth leaders of the ASEAN bloc. As per the EIC report, CLMV economies are primarily strong due to being well-positioned to benefit from the “China+1” strategy in 2024, which is seeing more and more multinational enterprises seeking to diversify their manufacturing bases to mitigate rising geopolitical trade risks Source: Khmer times  08 April 2024 The Council for the Development of Cambodia (CDC) approves projects worth $2.2 billion in the first quarter   The Council for the Development of Cambodia (CDC) approved 106 fixed assets investment and expansion projects worth $2.2 billion in the first three months of this year, a jump of 649 percent over the same period last year. Of the approved projects, 73 are in special economic zones and 33 others are in non-special economic zones, generating 107,000 jobs for local people. Breaking down by sectors, investment in the industrial sector has the largest share of 90.57 percent, while agricultures and agro-industry infrastructure and tourism accounted for 3.77 percent, 3.77 percent, and 1.89 percent, respectively. Kampong Speu and Svay Rieng provinces received a large number of projects. While 26 projects are in Kampong Speu province, 23 are in Svay Rieng, with 14 projects in Phnom Penh. Preah Sihanouk province received 13 investment projects, Kandal and Takeo provinces received nine projects each, and Kampong Chhnang province five. Koh Kong and Stung Treng provinces received two projects each, while Preah Vihear, Kampot and Kampong Cham provinces received one project each. "The rapid increase was due to new investment projects in infrastructure, industry, tourism, and investment expansion in special economic zones," CDC said in the report. Source: Khmer times 08 April 2024 The Minister of Commerce points out three points to improve the business and investment environment in Cambodia to be even better  Ms. Cham Nimmol, the Ministry has outlined three key areas of focus for enhancing the business and investment environment in Cambodia. The Minister highlighted the Ministry of Commerce’s focus on improving the business environment and investment in Cambodia, such as continuing to strengthen the enforcement of competition laws, consumer protection laws, and relevant legal documents in force, preventing all transactions and business activities that hinder, restrict, or undermine fair and equitable competition. This includes strengthening the protection of legal intellectual property and private property to promote the development of new products and services, innovations to ensure market competition, and the continued preparation and amendment of laws and regulations aimed at facilitating business and investment and strengthening Cambodia’s competitiveness in the international arena. Source: Khmer Times 09 April 2024 Cambodia ranks first in ASEAN and third among the 20 fastest-growing economies in Asia  with a growth rate of 6.1% in 2024 According to Pen Bona, spokesperson of the Royal Government of Cambodia, the ranking of economic growth published by the Indonesian statistics firm SeasiaStats is based on the forecasts of international financial institutions. The spokesman recalled that under the leadership of Mr Hun Sen, the former Prime Minister, Cambodia had a high and steady economic growth of around 7% for decades. This enabled Cambodia to realize rapid development after achieving full peace with a win-win policy in 1998, Despite the global upheaval caused by the COVID-19 pandemic, Cambodia, under the astute leadership of the Royal Government, led by Mr Hun Sen, has demonstrated remarkable resilience. The government’s prudent management has mitigated the impact of this unprecedented health crisis, gradually steering the country and its people towards recovery. Source: Khmer Times 10 April 2024 Cambodia’s growth forecast at 6.2 pct in 2024: AMRO  Cambodia’s economic growth is forecast to strengthen in 2024 with continued moderating inflation, said an ASEAN+3 Macroeconomic Research Office (AMRO)’s regional economic outlook released on Monday. The report said Cambodia’s economy is expected to grow at 6.2 percent this year, up from 5.3 percent last year. It added that inflation is projected to accelerate to 3.1 percent from 2.1 percent. The report said growth this year will be mainly driven by robust domestic demand, underpinned by increasing household incomes and recovering investment activity and tourism. According to the report, the kingdom’s economy is predicted to expand to 6.4 percent in 2025, with inflation decelerating to 2.8 percent. Source: Khmer Times 10 April 2024  CDB endorses 173 investment projects worth approximately $4 billion in six months  The Council for the Development of Cambodia (CDC) has approved 173 investment projects worth some $4 billion during the last six months, from September 2023 to February 2024. The figures were shared at a Dissemination Workshop on Investment Law and a Sub-Decree on the Implementation of Investment Law held under the presidency of SUN Chanthol, Deputy Prime Minister and First Vice President of the CDC. The figures show an increase of 83 projects compared to the period of September 2022 to February 2023, while the investment capital rose by $3.1 billion. The approved investment projects are expected to generate a total of 180,225 jobs for the locals. According to Chanthol, the CDC has been collaborating with the capital and municipal administrations, the Cambodian Oknha Association, the Cambodia Chamber of Commerce, and other stakeholders to prepare a book on the investment potential of the 25 capital and provinces. Source: Khmer Times 10 April 2024 Cambodia’s graduation from Least Developed Country (LDC) set for 2029  Cambodia is expected to see the graduation from the Least Developed Country ( LDC) status in 2029. The country’s second round of LDC graduation applications is scheduled to be submitted in June this year to the United Nations Economic and Social Council ( ECOSOC) for review and evaluation, said Minister of  Planning Bin Trachhey. The first round of the country’s LDC graduation application was submitted in 2021 the year Cambodia met the graduation criteria for the first time. “ We will submit the LDC graduation application in June to ECOSOC. If the application meets the criteria, Cambodia’s LDC graduation in 2029 will be announced by the UN General Assembly” Trachhey said at the ministry’s annual meeting presided over by Prime Minister Hun  Manet. Cambodia’s government has previously set a goal to leave LDC status by 2027 after the country’s two decades of sustainable economic growth. The government has also set a goal of transforming the country into an upper-middle-income country by 2030 and a high-income country by 2050.  Source: Khmer times 11 April 2024 67 percent of Cambodians have access to  financial services, says NBC Governor  As high as 67 percents of Cambodians today have access to formal financial services, said Dr Chea Serey, Governor of National Bank of  Cambodia. Dr Chae Serey referred to  the results of a Mobile Tracker Survey conducted by UNCDF, where it was seen  that the percentage of formal financial service users in Cambodia has increased significantly from 59 percent in 2015 to 67 percent in 2021.” And this brings us closer to the target of 70 percent by 2024; so that a majority of Cambodians are part of our financial system” said the Governor. The Governor also noted how NBC has cooperate with many ministries  and development partners  in promoting financial literacy, including digital financial literacy .” The NBC has paid attention to consumer protection by implementing laws and regulations to strengthen  the effectiveness in protecting consumers rights and creating working groups to receive and handle complaints” she said. Cambodia’s total banking assets in 2023 were worth $84.3 billion or 265 percent of the country’s GDP. To add up Rath Sophoan, Chairman of ABC said  “ Credit to customers was up $57.6 billion or180 percent of GDP. Today our banking system has a total of 3.8 million accounts with deposits as high as $47.9 billion. This is because Cambodia’s banking sector has undergone substantial transformation and development over the past three decades, leading to an era of solid and sustainable growth” .  Source: Khmer times 11  April 2024 The Association of Banks in Cambodia (ABC) vows to increase riel usage  According to Rath Sophoan, Chairman of ABC, to date, riel loans in the banking sector accounts for 11 percent of the total outstanding loan volume while riel in deposits sees a remarkable increase compared to last 10 years. “The Bakong system of the National Bank of Cambodia (NBC) and various other digital payment systems have contributed to making it easier for people to use the riel,” Sophoan said at a press conference yesterday. By the end of 2023, loans disbursed by financial institutions reached $57.6 billion or 180 percent of GDP in Cambodia, through a total of 3.8 million accounts, while deposits were $47.9 billion, through 18.6 million accounts, an ABC report showed. With the objective of de-dollarizing the economy based on the market mechanism and on a gradual approach, NBC has implemented various policy measures to promote the riel. Source: Khmer Times 11 April 2024 Cambodia’s exports surge 18% in first quarter  Showing signs of a clear recovery, Cambodia’s exports reached $6.26billion in the first quarter (Q1) of the year, a surge of 18 percent compared to the same period last year, according to the trade data released by the General Department of Customs and Excise(GDCE). On the other hand, Cambodia’s imports also increased, reaching $6.23 billion during the January to March period this year, an increase of 6.4 percent, compared to the same period last year. The kingdom’s international trade exports and imports together ) reached $ 12.49 billion in Q1,2024, recording a growth of 11.9 percent, year on year. The Kingdom’s total exports in 2023 stood at $22.64 billion while the imports were estimated at $24.18 billion. The country also recorded a trade deficit of $1.53 billion last year  Source: Khmer times 12 April 2024 Women clients of MFIs save  9% more than men, says study  Women clients of microfinance institutions( MFIs) tend to have 9 percent more savings than men on average, as per a recent study. In a study on how microfinance affects the living standards of Cambodian borrowers by the Cambodian Microfinance Association(CMA) and ratings and research firm M-CRIL, it was found that women tend to have savings of about $73, compared to men having %67. But there is also a difference in the saving pattern. While women tend to have more current savings, they tend to keep the amount at home. Men on the other hand prefer parking their money with banks or MFIs. Women tend to keep higher savings (27 percent more) at home than men. But when it came to a bank, women tended to have less savings (41 percent less) in a savings account, compared to men. But when it came to keeping savings with a microfinance deposit-taking institution (MDI), the trust levels for men and women were similar and they tended to keep similar levels of savings with the institution. The study also showed the levels of knowledge and awareness of interest rate charges by financial institutions among clients. About half of MFI clients of both genders know the interest rates on at least one loan. But, when it came to overall financial knowledge, the study found that women were less likely than men to know the interest rate for all active loans. This includes the loans taken by other household members. Source: Khmer Times 12 April 2024  Asian Development Bank(ADB) projects Cambodia to grow at 5.8%  in 2024  The report forecasts continuing economic expansion in 2024-2025, supported by stronger export-oriented manufacturing. It also expects inflation, which averaged 2.1 percent in 2023 mainly on falling global energy prices, to remain at around two percent over the next two years. The report noted that graduation will improve the country’s international standing and investment attractiveness, but simultaneously pose challenges from reduced access to concessional financing and preferential trade treatments that propel sectors contributing to high growth and employment. The report stated that The exchange rate remained stable, averaging KHR 4,110 per US dollar. Money supply growth accelerated to 12.5 percent from 8.2 percent in 2022, but credit growth to the private sector slowed to 3.9 percent from 18.6 percent amid tighter global financial conditions. With external public debt forecast at 36.3 percent of the GDP in 2024 and 37.3 percent in 2025, the risk of public debt distress remains low. The government also plans to issue the equivalent of $108 million in sovereign bonds in 2024 to finance revenue-generating investment projects, the ADB report said. Foreign Direct Investment rose by 10.6 percent to $4 billion in 2023 and contributed to an increase in international reserves to $20 billion, the equivalent of 8.2 months of imports. Source: Khmer Times 12 April 2024 Cambodia, Greater Bay Area( GBA) Entrepreneurs Alliance sign economic MoU  The Ministry of Industry, Science, Technology & Innovation (MISTI) and the Guangdong-Hong Kong-Macao Bay Area Entrepreneurs Alliance have entered into a Memorandum of Understanding (MoU), aimed at strengthening collaboration in trade, investment, and business exchanges between the Greater Bay Area (GBA) and Cambodia. Their objective was to gain insights into the government’s priorities and explore investment opportunities in Cambodia. Engaged in fruitful discussions with MISTI, the delegation expressed their keen interest in diverse investment avenues, particularly focusing on the establishment of green special economic zones, including the advancement of electric vehicles and charging infrastructure, implementation of energy storage solutions, adoption of waste-to-energy initiatives, deployment of 5G technology for converged communications, and aerospace and satellite imaging technologies. Source: Khmer Times   Lady Aegies Comment: To be continue...............

Overview of Banking in Cambodia 銀行體系結構 根據柬埔寨國家銀行(National Bank of Cambodia；亦即該國央行)統計，截至2021年7月，柬埔寨共有54家商業銀行，85家微型金融機構 (Microfinance Institutions)，以及其他金融機構，如圖1所示。 圖1柬埔寨銀行體系 資料來源：柬埔寨央行, AEGIES研究整理   銀行體系資產分析 面對COVID-19疫情肆虐下，在適足的資本和充沛的流動性支撐下，柬埔寨金融體系仍能維持其韌性。2020年金融機構資產年增15.2%，總值為柬幣(KHR，以下同)239.4兆 (USD592億)，其中銀行佔大部分的份額；銀行全體放款較前一年增加16.9%,餘額為KHR153兆(USD 378億)。同一期間，銀行總存款增加14.9%至KHR135.7兆(USD336億)。淨值則增加17.2%至KHR46.8兆 (USD116億)。        存放款利率趨勢   2020年銀行(商業銀行及專業銀行)柬幣與美元的存款加權平均利率分別為5.6%及4.3%,較上年微幅下降。柬幣放款加權平均利率亦較上年微幅下降至10.3%，而美元放款加權平均利率則上升至9.1%。   其中，2020年微型金融機構存款及放款平均利率整體較上年微幅下調，其中，柬幣與美元的存款加權平均利率分別為7.5%及7.4%。在法定放款利率上限為18%的規定下，柬幣放款平均利率為15.4%，美元放款平均利率則為15.2%。   柬埔寨銀行體系經營現況 儘管受到疫情的衝擊，柬埔寨銀行體系在資本和流動性方面持續保持其韌性及穩健，主要歸功於柬埔寨在過去幾十年實施個體審慎監理 (microprudential supervision)，加上央行的管理措施得宜，增强了銀行體系的穩健，銀行體系的資本和流動性狀況充足。同時，低逾放比率反映了銀行體系的穩健與低風險。   資本適足性充足 2020年銀行體系在資本適足性方面繼續保持其韌性。銀行持續維持高且穩定的資本適足率（capital adequacy ratio, CAR），2020年CAR為23.7%，略低於2019年的24%。2020年，微型存款機構（Micro-finance Deposit Taking Institutions，MDI）與微型財務機構（Micro-finances Institutions，MFI）資本適足率較前一年大幅提高，MDI的部份從16.2%上升至19.8%，MFI則從34.9%上升至38.9%，對疫情期間不確定性造成的損失提供了額外緩衝。強勁的CAR可歸因於MDI和MFI的風險加權資產分別下降了4.8%和13.4%。 資產品質穩定 儘管受到疫情的衝擊，在柬埔寨央行(NBC)迅速採取措施下，銀行體系的資產品質得以維持穩健，這反映在相對低的逾放比率上。銀行體系整體的逾放比率為2.1%，較2019年（1.7%）微幅上升。銀行和微型金融機構的逾放比率在2020年期間分別從2019年的2%上升至2.1%和0.8%上升至1.8%。逾放比率得以維持在相對低的比率歸因於債務重組(restructuring)，並允許金融機構在債務重組後將放款歸在相同的信用分類中，也代表了當地央行靈活有彈性的穩定金融應變能力。 銀行經營效率 2020年銀行整體效率比(efficiency ratio，指非利息費用佔總收入比重)從44.6%小幅上升至45.9%。這可歸因於較2019年，銀行費用增加了79%。由於MFI營運模式較爲傳統，故效率較低，進而導致其效率比亦從2019年68.3%上升至70.4%。MDI效率比則從2019年55.8%下降至51%。   獲利能力穩健 儘管因疫情關係，使得銀行備抵呆帳費用增加和放款成長放緩，銀行體系整體而言仍維持一定的獲利能力。銀行的資產報酬率（ROA）從2019年的1.9%微幅下降至1.7%，權益報酬率（ROE）則從9.8%下降至8.7%。 其中，MDI的ROA持續維持在2.9%，但其ROE則從上年17.7%降至14.8%，主要是銀行資本增加所致。與前一年相比，MFI的ROA從2.2%下降至1.9%，ROE則從6.3%下降至4.5%。在疫情仍未止歇的情况下，NBC呼籲銀行和金融機構不要將其盈餘作為2020年的股息分配，而是將盈餘保留下來，作為維持獲利能力和未來不可預測事件的防範及緩衝之用。 適當的流動性 2020年，商業銀行和MDI的流動性覆蓋比率（Liquidity Coverage Ratio, LCR）皆高於法定基準（100%），其中銀行平均LCR為162.5%，較2019年（155.8%）有所增加；MDI的LCR則從2019年178.1%大幅上升至240.4%。LCR的上升主要是因為NBC實施的流動性挹注措施、銀行的審慎放貸、以及疫情爆發期間存款和儲蓄的增加（11.8%）等所致，使得柬埔寨銀行業的流動性維持在較高水準。 近幾年，銀行流動性資產占總資產比例大多維持在20%以上，而外債在總負債中所占比例則從2019年16.1%小幅攀升至17.1%。 最後，值得一提的是，由於監管得宜，協助柬埔寨安然度過疫情肆虐、充滿挑戰的2020年，柬埔寨央行總裁Chea Chanto於2021年獲得The Banker雜誌頒發之亞太地區最佳央行總裁獎 (Central Banker of the Year, Asia-Pacific)。The Banker雜誌是英國金融時報(Financial Times)集團旗下刊物，也是全球最重要國際金融權威性雜誌之一，獲得此一殊榮實屬不易。台灣央行總裁彭淮南亦曾獲該雜誌評選為2008年度「亞洲地區最佳央行總裁」（Best central banker governor - Asia）。 Chea Chanto 該雜誌指出，Chea Chanto總裁得獎的主要原因是，NBC要求柬埔寨銀行協會和柬埔寨小額貸款協會，2020年3月開始實施的貸款重組 (loan restructuring) 措施應持續到2021年6月底。在延長實施期間，允許重組可達三次，且重組對貸款分類將不會產生任何影響。其他措施還包括：降低利率和免除費用。這些措施使得該國的不良放款率一直維持在2.5%左右。 柬埔寨也繼續推進數位銀行業務。NBC於2020年10月推出了數位貨幣Bakong，以提高普惠金融，因為許多公司仍然以現金方式發放薪資。Bakong系統(一種手機App)係以區塊鏈為底層技術，可以支援美元和柬埔寨瑞爾交易。目前約有20家當地金融機構與Bakong進行串接。 2021年，NBC亦努力推廣柬埔寨法定貨幣瑞爾。總裁Chea Chanto也呼籲大家多使用該國貨幣瑞爾，稱這將是鼓勵可持續增長和發展有效率銀行體系的方式，而不必依賴美元。目前低面額美元紙幣已開始減少流通。

Cambodia Weekly Financial News December 04~08, 2023 04 December 2023 CSX reports strong growth in listing and trading activity The Cambodia Securities Exchange (CSX) is witnessing a surge in new companies listing both equity and bond securities, despite the tense global economic situation. Hong Sok Hour, CEO of the CSX, noted recently that there are 21 firms listed on the exchange, including 11 stocks and 10 corporate bonds, collectively raising $349 million. In October 2023, the average daily trading volume for shares reached approximately 130,000 per day, with an average daily trading value of about $210,000 and approximately 11,000 active investors participating. “We also anticipate a significant number of firms listing equity and corporate bonds, along with a series of sector-specific bonds [next year],” Sok Hour stated. Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), noted that the stock market has been making progress, especially with the increasing number of securities listed by local firms. Source : The Phnom Penh Post 04 December 2023  Cambodia, Vietnam launch cross-border QR code payment The National Bank of Cambodia (NBC) and the State Bank of Vietnam yesterday launched the cross-border QR code payment linkage in a boost to business and tourism in both countries. The launching ceremony was held in Siem Reap in the presence of Chea Serey, Governor of NBC, Nguyen Thi Hong, Governor of the State Bank of Vietnam and representatives of various partner banks. The launch marked yet another milestone for NBC and the State Bank of Vietnam in the areas of financial innovations, payment systems and cross-border QR payment linkages, the NBC said. It enables people of both countries to make safe, secure, convenient and affordable cross-border payments using their local currencies. With this, NBC’s Bakong payment system is currently used for making cross-border transactions with Thailand, Laos, and Vietnam. Source : Khmer Times 05 December 2023 Cambodia’s exports to Indonesia, India rise sharply Cambodia’s exports to Indonesia rose by 65.5 percent and to India by 57.7 percent in the first 10 months of this year – the sharpest growth among the top 20 export destinations of the country, revealed the latest trade data of the General Department of Customs and Excise (GDCE). India accounted for 1.3 percent of Cambodia’s total exports in the first 10 months, the GDCE data showed. Indonesia has a share of 0.3 percent. Exports to India reached $233 million and to Indonesia $48.5 million during the period. Cambodia’s imports from India, however, declined by 20.2 percent and reached $167.52 million during the January to October period of 2023, compared to the same period last year, giving the Kingdom a surplus of $65.87 million in bilateral trade for the period. Cambodia’s imports from Indonesia, however, registered an increase of 9.6 percent, giving Indonesia a surplus of $765 million in the first 10 months, the data showed. Source : Khmer Times 05 December 2023 Online registration soars; capital surpasses $9B The number of companies that have successfully listed their ventures on the Online Business Registration System (OBRS) via IT Platform Phase I has risen to more than 317,000, with a total capital exceeding $9 billion. This marks a significant increase from nearly $6 billion at the beginning of 2023, as reported by OBRS. Phase III was introduced on June 22, 2023, including additional institutions. As of December 3, the number of companies successfully listed through the Single Portal platform stood at 31,703, with a total registered share capital of $9.36 billion. This includes 38% female-owned businesses. Chhin Ken, president of the Cambodia Digital Tech Association (CDTA) stated that “Law enforcement by the GDT and the ease of filing have motivated more business owners to register, while the use of technology in Cambodian society is also showing better progress,”. He believes accountable business practices can also attract more foreign investors to the Kingdom. Source : The Phnom Penh Post 06 December 2023 Microfinance growth boosts financial stability One of Cambodia's prominent microfinance institutions (MFIs) released its sustainability report, showing that 90% of respondents expressed satisfaction with its contribution to their enhanced well-being over the previous 12 months. Among 549 respondents who disclosed an increase in income during the period, 94% attributed the growth to the MFI's support and customized financial solutions. Of the 409 clients with savings, 80% saw an increase in their reserve portfolio over the past year. “This underscores LOLC’s ability to instill financial discipline and cultivate long-term financial stability among its clients,” said the report. According to the Cambodia Microfinance Association (CMA), at the end of Q3 2023, the sector had a total loan balance exceeding $5 billion and more than 1.5 million loan customers. Deposit-taking MFIs held over $2 billion in deposits with nearly 2 million depositors. Source: The Phnom Penh Post 06 December 2023 Cambodia’s exports to RCEP countries up 26 percent Cambodia exported $6.45 billion worth of goods to RCEP countries in the first ten months of this year, an increase of 26.4 percent compared to $5.1 billion in the same period last year, a report from the Ministry of Commerce showed yesterday. The two-way trade between Cambodia and RCEP countries, however, decreased by 7.6 percent to $24.12 billion, read the report. The country’s RCEP exports accounted for 33 percent of the Kingdom’s total trade of $19.33 billion during the January-October period, stated the report. “RCEP has given a big market access to Cambodia’s products and is the source of the country’s sustainable economic development in years to come,” said Sok Siphana, Senior Minister in Charge of International and Multilateral Trade and Economic Relations. The agreement has played an important role in promoting Cambodia-made products and contributed to attracting new foreign investment, said Penn Sovicheat, spokesman at the Ministry of Commerce. Source: Khmer Times 06 December 2023 TAFTAC urges easier tax rules for garment sector Tax issues in the garment sector persist as a complex challenge for investors, necessitating process simplification to preserve the industry’s appeal and boost exports, according to the Textile, Apparel, Footwear and Travel Goods Association (TAFTAC). TAFTAC president Kong Sang said during the 2023 Tax Forum stated that “In principle, the law is simple, but in practice, there are many factors contributing to the complexities of our compliance environment. According to a previous survey, some factory taxpayers and tax officers, both Cambodian and foreign, have limited knowledge and, in some instances, have not received comprehensive and timely law updates on relevant legal and tax issues. Sometimes, there is also negligence or lack of attention,”. “I recognize the challenges faced by taxpayers in the garment and textile sector in filing tax documents. Over the past decade, the GDT has been committed to organizing seminars, training and publications to enhance taxpayers’ understanding of their obligations,” he stated. Source: The Phnom Penh Post 07 December 2023  SME Bank, Cambodia Cashew Federation sign MoU on affordable financial schemes The SME Bank of Cambodia and the Cambodia Cashew Federation have signed a Memorandum of Understanding to promote the cashew processing sector and boost the export of Cambodian processed cashew nuts to international markets. Through this MoU, enterprises that are members of Cambodia Cashew Federation can apply for affordable financial schemes from SME Bank of Cambodia to expand their businesses. Dr. Aun stated that the bank’s collaboration is a strategic initiative to bolster the growth of Cambodia’s cashew sector. “SME Bank of Cambodia views this MoU as a significant step towards addressing the challenges faced by the cashew industry, including processors and exporters, and propelling the cashew processing industry in Cambodia to new heights,” he emphasized. Furthermore, it aims to increase the export of processed cashew nuts successfully and sustainably to global markets, he added.  Source: Khmer Times 07 December 2023  Cambodia, UAE chambers strengthen ties The Cambodia Chamber of Commerce and Dubai Chambers of the United Arab Emirates (UAE) will step up cooperation in trade and investment and sign a memorandum of understanding (MoU). The meeting agreed to sign an MoU between the chambers of commerce of the two countries aiming to foster cooperation on investment and trade and to push for direct flights connecting the two countries, said Lim Heng, CCC Vice President. The discussions mainly focused on the potential for investment in the agricultural sector of Cambodia especially in rice production, tourism, and food safety as well. Bilateral trade between the UAE and Cambodia reached $407 million in 2022, according to a report by the Ministry of Commerce. Main traded items include clothes, footwear, bicycles, travel goods, tobacco, milled rice, electrical appliances, vehicle components, asphalt, tuber sugars, animal feed, plastics, vehicles and paper. Source: Khmer Times 07 December 2023  Gov’t revenue $4.9B, spending $6.3B The government’s national revenue collection in the first 10 months of 2023 reached nearly $4.9 billion, equating to almost 78% of the target set by the 2023 Law on Financial Management, while total expenditures stood at over $6.3 billion, as reported by the Ministry of Economy and Finance. The figure marks a 2.02% decrease compared to the same period in 2022. The report highlighted that, considering revenue performance trends over recent years and the recovery of the country’s socio-economic activities, the collection is on track to meet the objectives outlined in the budget law. The report indicated that total spending in the first 1- months of 2023 amounted to $6.33 billion, or 74.95% of the budget target, a 19.49% increase from the same period last year. Capital expenditure was $2.169 billion, rising by 12.32% and current expenditure reached $4.159 billion, up by 23.6%. The ministry emphasized the ongoing principle of restricting unnecessary spending and prioritizing essential sectors. Source: The Phnom Penh Post 07 December 2023  Thailand’s PRIME to expand investment in renewable energy Thailand-based Prime Road Power Public Co Ltd (PRIME), the parent company of Prime Road Alternative (Cambodia) Co Ltd (PRAC), plans to significantly expand their clean energy investments Cambodia. This aligns with the government’s strategy to attract more financing in the sector. PRIME chief financial officer Piroon Shinawatra sought further support from Cambodian ministries and institutions during a meeting with Sun Chanthol, deputy prime minister and first vice-president of the Council for the Development of Cambodia (CDC), in Phnom Penh on December 6. Chanthol endorsed the firm’s expansion plans, urging collaboration with relevant ministries and institutions to explore potential investment areas. He emphasized the government’s openness to investors in clean energy, in line with its vision to export energy regionally, particularly to promote clean energy. According to the chairman, the company’s total revenue for Q3 2023 reached 282.63 million Thai baht (about $7.997 million), a 54.48% increase compared to Q3 2022. From January to September, revenue climbed to 1.454 billion Thai baht ($41.14 million), up by 124.44% year-on-year, with solar power plant operations contributing 46.69% to the group’s total operating income. Source: The Phnom Penh Post 07 December 2023  SERC invited the CEO of Aegies Fund Management Plc., to share insights about CIS  The Securities and Exchange Regulator of Cambodia (SERC) is pleased to share the 4th day of the 26th Training and Examination and Continuing Professional Education in Securities Sector for Group 1: Training for Securities Firms, Issuers and Firms Providing Services in Securities Sector, Group 2: Training for Firms Doing CIS Businesses and Group 5: Continuing Professional Education for Firms Doing CIS Business at Business Development Center Building, 15th Floor. H.E. Dr. Vin Pheakdey, Deputy Director General of SERC had fireside chat with Dr. Sarah, the CEO of Aegies Fund Management Plc., under the topic of opportunities, readiness, and potential of Collective Investment Scheme (CIS) in Cambodia. Dr. Sarah has shared her insightful knowledge and experience with the training participants.  Source: SERC Facebook Page 08 December 2023  H.E. Yim Leat, Deputy Governor of the National Bank of Cambodia presided over Maybank Regional Financial Education Excellence Award 2023 of Maybank (Cambodia) Plc. H.E. Yim Leat, Deputy Governor of the National Bank of Cambodia presided over Maybank Regional Financial Education Excellence Award 2023 of Maybank (Cambodia) Plc. on 7th December 2023 at Hyatt Regency Phnom Penh for nominees from Cambodia, Malaysia, Indonesia, Philippines and Vietnam. This event aims to: 1/-address the need for financial education for students aged 9 to 12 in schools across ASEAN via animated series 2/-recognize and celebrate individuals and related parties including, schools, educators, students and families who have displayed dedication and extraordinary effort in promoting or championing financial literacy and 3/-foster a deeper awareness of the importance of money management among students and their families. Source: NBC Facebook Page Lady Aegies Comment : To be continue...............

Cambodia Weekly Financial News November 27 ~ December 01, 2023 27 November 2023 Minister of Commerce highlights the trade opportunities and benefits of implementing the Cambodia-UAE CEPA in the future The Minister of Commerce of Cambodia, Cham Nimmol, briefed the representative of the Cambodian Private Business Centre in Dubai on the business opportunities in Cambodia and the expected benefits of implementing the Comprehensive Economic Partnership Agreement between Cambodia and the United Arab Emirates (Cambodia-UAE CEPA) in the near future. On this occasion, Ms. Cham Nimmol also allowed Ms. Chenling Zhang, General Director of OneRoad Group, to pay a courtesy call and discuss work on strengthening and expanding investment activities and business activities of companies operating in both countries as well. Source : Khmer Times 28 November 2023 CSX: Historic green bonds issued in first for Kingdom Cellcard (CamGSM), a leading and longstanding telecommunications service provider, achieved an historic milestone as the first company on the Cambodia Securities Exchange (CSX) to officially list and issue sustainability bonds. The move raised nearly $20 million, earmarked for expanding its business operations. Cellcard officially issued the debt securities on November 24, accumulating $19.9 million with a ten-year maturity period. Sou Socheat, director-general of the Securities and Exchange Regulator of Cambodia (SERC), noted that this was CamGSM’s second listing on the CSX. The company completed its initial public offering on June 27, 2023, raising approximately $5.2 million. He stated that the company registered the sale of sustainable bonds valued at about $19.9 million, each with a par value of 100,000 riel ($24.41), with a coupon rate of SOFR+3% or 5.5% per annum (whichever is higher), and semiannual coupon payments, on November 24. Source : The Phnom Penh Post 29 November 2023  Cambodia makes rapid strides in financial inclusion Cambodia made rapid strides in improving financial literacy and thereby financial inclusion in the country with a host of measures in the last couple of years, said Yim Leat, Deputy Governor of the National Bank of Cambodia (NBC), yesterday. “Over the years, the implementation of NFIS by NBC with the support of financial services providers and various associations has significantly improved the financial inclusion landscape in Cambodia,” he noted. These programs include the integration of finance as a subject in the national school curriculum, enhancement of women’s financial literacy and digital literacy, promotion of women entrepreneurship (under ESCAP’s project), Let’s Talk Money Campaign, the conduct of microfinance dissemination workshops for rural authorities, the implementation of ‘Community Safe Finance’ project, the development of financial literacy roadmap, and the development of sex-disaggregated data collection framework. Source : Khmer Times 30 November 2023   Understanding ‘blue chip’ stocks and how they can benefit an investment portfolio With markets open to fluctuations, many investors gravitate towards investments that offer “safety, stability, and resilience”, such as those known as “blue chip” stocks. These stocks are known for their ability to weather economic downturns and provide relatively stable returns over the long term. Some examples of blue-chip stocks include Coca-Cola, Walmart, Nike, PepsiCo, Microsoft, Apple, Tesla and Johnson & Johnson. Blue-chip stocks are popular among investors, particularly the more risk averse, due to their reputation for reliability and stability. The pros of blue-chip stocks include low volatility, low risk investment, pay steady return and dividend yields to shareholders, well-regulated and governed, with reports proven to be accurate, and Blue-chip companies are often leaders in their respective industries. The cons of blue-chip stocks may include higher share price, slower growth which can result in lower capital appreciation, moderate dividends as their yields may not always outperform the broader market, conservative approach, and safe, but not 100 per cent immune from economic downturns.  Source : The Phnom Penh Post 30 November 2023 MFI sector resilient amid global crisis Despite the uncertain national and global economic situation, Cambodia’s microfinance operations have demonstrated resilience and continue to make substantial contributions to macroeconomic activity by injecting financial resources into the economy. Sok Voeun, chairman of the Cambodia Microfinance Association (CMA), stated at the 2023 Microfinance Conference in Siem Reap province on November 24, that at the end of the third quarter of 2023, the sector had a total loan balance exceeding $5 billion and more than 1.5 million loan customers.  Deposit-taking microfinance institutions (MFIs) held over $2 billion in deposits with nearly 2 million depositors. “The microfinance sector in Cambodia continues to maintain its stability by providing services with a high sense of responsibility and customer protection,” he stated. He added that the industry comprises over 900 offices and employs more than 20,000 individuals – data which does not include banks that are members of the association.  Source: The Phnom Penh Post 01 December 2023 CDC approves $160M in new investment projects in SEZs The Council for the Development of Cambodia (CDC) has approved 13 investment projects in special economic zones (SEZs) with a total investment of more than $160 million, expected to generate thousands of jobs across Svay Rieng, Preah Sihanouk and other provinces.  The CDC announced on November 30 that it approved a SchneiTec Vibrant Co Ltd initiative worth $65.5 million to develop a 60-megawatt solar power plant with a power storage system in Svay Rieng province. Other ventures in the province include Vacation Industry Co Ltd with a $7.3 million investment; Star United Christmas Decoration Co Ltd with $6 million; CH Lighting Tree Co Ltd with $5.8 million; and Glorious Building Material (Cambodia) Co Ltd with $1.2 million.  Projects in Preah Sihanouk include Justmarvelous Co Ltd with an allocation of $8.2 million in capital; Kamelun Wood Co Ltd with $3 million; and Angel Wood (Cambodia) Co Ltd with $1.4 million. Other investments were garment factory related projects in various provinces.  Source: The Phnom Penh Post  01 December 2023 NBC leading digital fintech advancement development The central bank emphasized that the rapid development of digital technology and innovation, particularly in financial technology (fintech) systems, presents various digital-related risks to society. Chea Serey, governor of the National Bank of Cambodia (NBC) Serey stressed the challenges that need addressing for the country to fully benefit from technological advancements. As fintech rapidly evolves, new and complex risks like cybersecurity have emerged. Serey highlighted the need for more responsive regulation to keep pace with these developments. “Enhancing the legal framework to address cybersecurity, data privacy and protection is crucial to building trust in digitization,” she added. According to Serey, as a facilitator in the payment system the central bank has embraced recent technologies in the name of modernization. This includes the introduction of several mechanisms such as the National Clearing System (NCS), the Online Banking System (OBS), the NBC Platform (NBCP), the Cambodian Shared Switch (CSS), Fast Payment and most recently Bakong – the backbone of the payment network. Source: The Phnom Penh Post 01 December 2023 CIA First international school plans to sell bonds  Cambodia Securities Exchange (CSX) is honored to notify the public that the CSX granted its approval in principle on bond listing eligibility review to CIA First International School Co., LTD. On November 23, 2023. In order to be officially listed and have its securities traded on the CSX, the CIA First shall get offering approval from the securities and Exchange Regulator of Cambodia (SERC) and meet further listing requirement of the CSX. And the CIA First is the third company obtaining the approval in principle on bond listing from CSX in the year 2023. According to the announcement, CIA First International School was established in 2016 and currently has three campuses in Phnom Penh, ranging from kindergarten to high school. The face value of the bonds is 100,000 riels, and a total of 825,000 bonds were issued, with a total value of 82.5 billion riels (approximately US$20 million). The annual interest rate is the guaranteed overnight financing rate plus 3% (SOFR + 3%) or 5.5% (depending on Whichever is higher), the bond maturity date is November 15, 2033. Source: The Cambodia China Times 01 December 2023 The Gov’t approved USD$ 65.5 million Solar Power Plant in Svay Rieng The Council for the Development of Cambodia (CDC) has officially endorsed the registration of “SCHNEITEC VIBRANT CO., LTD” for a pioneering project – the construction of a USD$ 65.5 million solar power plant in Svay Rieng province, according to the publication of the CDC on November 30, 2023. The proposed solar power plant, set to be established in Kandal village, Svay Chek commune, Romduol district, Svay Rieng province, is poised to be a beacon of innovation and environmental responsibility. With a robust capacity of 60 MW, complemented by an advanced power storage system, the facility is expected to play a pivotal role in meeting the growing energy demands of the region. Source: Construction and Property Lady Aegies Comment : To be continue...............