Investment Hightlights
Cambodia Weekly Financial News July 03~07, 2023
2023-07-08View Times｜ 1071
Cambodia Weekly Financial News
July 03~07, 2023
03 July 2023
Central bank's regulations to boost financial resilience in Cambodia
The National Bank of Cambodia (NBC) has announced the enforcement of regulations on capital buffer and on credit risk for capital adequacy ratios (CAR) for banks and deposit-taking microfinance institutions (MFIs). These measures aim to bolster the management of diverse risks, it said. In its June 29 press release, the NBC revealed that these regulations, referred to as prakas, form part of the solvency measures for banks and deposit-taking MFIs. “These two prakas were drafted to international standards, considering the context, development and future vision of Cambodia's banking and financial systems, along with pertinent legal and regulatory elements in force,” it said. The prakas aim to bolster the capital and resilience of banks and deposit-taking MFIs in mitigating various risks, including credit and operational risks, and market volatility. This is to safeguard depositors and investors, uphold business stability and protect the overall banking system. The regulations reflect NBC's commitment to shaping the future development of financial markets, setting the terms and conditions for recognizing financial instruments of tier one and tier two capital in advance.
Source : The Phnom Penh Post
03 July 2023
China, Vietnam, Thai markets make up 70% of Cambodia’s imports
Mainland China, Vietnam and Thailand accounted for $7.259 billion or 71.81 per cent of Cambodia’s total goods imports in the first five months of 2023, which amounted to $10.109 billion, according to the General Department of Customs and Excise of Cambodia (GDCE). These three destinations were the Kingdom’s largest import sources for the five-month period. The corresponding trio of figures for the year-ago and semester-ago periods were as thus: January-May 2022 ($7.611B; 58.29%; $13.057B) and July-November 2022 ($7.367B; 62.00%; $11.882B). Cambodia’s total imports for January-May 2023 marked decreases of 22.58 per cent year-on-year and 14.92 per cent half-on-half, while inbound merchandise shipments from just the three aforementioned markets represented far smaller drops of 4.63 per cent year-on-year and 1.47 per cent half-on-half.
Source : The Phnom Penh Post
03 July 2023
Reskilling Revolution targets providing better education to 1B
The World Economic Forum (WEF) said progress was made in advancing the Reskilling Revolution and provide 1 billion people with better education, skills and economic opportunities by 2030. The network covers national-level country accelerators countries including Cambodia, Bahrain, Bangladesh, Brazil, Georgia, Greece, India, Oman, Pakistan, South Africa, Turkey and the United Arab Emirates. Countries such as Denmark, Finland, Singapore and Switzerland have been providing knowledge support. By leveraging the Accelerators Network, the Reskilling Revolution aims to impact more than 40 million learners, according to WEF. In April this year, WEF’s Closing the Skills Gap Accelerator Program for Cambodia organized a high-level skills workshop in Phnom Penh to review the progress of the initiative aimed at reskilling and upskilling the workforce in the country. In September 2021, Cambodia’s Closing the Skills Gap Accelerator was announced at the WEF’s Sustainable Development Impact Summit. According to estimates, 350 million people worldwide have been provided with better skills, jobs, and education under the Reskilling Revolution initiative.
Source : Khmer Time
04 July 2023
NBC expanding Bakong operations to more Asian countries
In a bid to promote cross-border economic activities using local currencies, the National Bank of Cambodia (NBC) is expanding the operations of its Bakong blockchain-based payment system to Vietnam, Laos, Myanmar, China, and India. The aim of expanding Bakong to foreign countries is to promote the use of local currency instead of the US dollar in trade and investment between trading partners. KHQR is a universal quick response (QR) code system created for retail payments in the Kingdom and cross-border payments within ASEAN, according to the central bank. The NBC is also working with other countries in Asia, Africa, Latin America and Europe to increase the scope of secure, low-cost and fast cash payment systems to support and promote tourism, investment and trade and remittances of the Cambodian migrant workers from abroad, NBC’s deputy governor said.
Source : Khmer Time
04 July 2023
Role of energy storage in Cambodia’s evolving energy market
Cambodia’s energy market is experiencing rapid growth and transformation, driven by the country’s increasing demand for electricity and its ambitious plans to diversify its energy mix. As the Southeast Asian nation continues to develop its infrastructure and economy, the need for reliable and sustainable energy sources becomes more critical than ever. One of the key components to achieving this goal is the implementation of energy storage solutions, which can play a vital role in ensuring the stability and efficiency of Cambodia’s evolving energy market. Energy storage systems are essential for integrating renewable energy sources, such as solar and wind power, into the grid. These technologies can store excess energy generated during periods of high production and release it when demand is higher or generation is lower. This not only helps to balance the grid but also reduces the need for fossil fuel-based power plants, which are the primary source of electricity in Cambodia. By incorporating energy storage solutions, the country can reduce its dependence on imported fossil fuels, lower greenhouse gas emissions, and promote a more sustainable energy future.
Source : Khmer Time
04 July 2023
Rail links from capital to new airport, AEON 3 mulled
The government is looking to build a light rail line, potentially underground, that would run from the currently under-construction Techo International Airport (TIA) to Phnom Penh, possibly with a station at or near AEON MALL Mean Chey popularly known as AEON 3 in a bid to bolster tourism. Ministry of Public Works and Transport Sun Chanthol disclosed this at an inauguration ceremony late last week for the latest of the ministry’s public service centers, at the southern Phnom Penh mall. Although a study on the construction of an underground metro system in the capital had been completed, the government’s additional plans for a link between that project and the new airport mean that financiers will need to perform further research on rail routing, station placement and costs. The minister expressed keenness to work with the AEON Group to identify an appropriate location for the proposed station in the event that investors are interested in pursuing underground or light rail system development in the Kingdom.
Source : The Phnom Penh Post
05 July 2023
Cambodia launches cross-institutional payment system for ATM and POS services
The National Bank of Cambodia (NBC) on July 4, 2023 announced the official launch of the Cambodian Shared Switch (CSS) to make it easier for institutional payment via CSS debit cards on all ATMs and POS machines of member institutions. The inauguration ceremony of the Cambodian Shared Switch was held today, July 4, with the participation of Ms. Chea Serey, Deputy Governor of the National Bank of Cambodia. She said that the development of the CSS system is another new initiative of the NBC to facilitate payment transactions through payment cards in Cambodia, which will allow customers to operate CSS debit cards on ATMs to perform cash withdrawals, balance checks, printing of summary reports, quick payment services and password changes. At the same time, customers can also make CSS debit card transactions on POS machines, such as purchases, balance checks, cash withdrawals, fund transfers, as well as allowing payment service providers to join the system, which will enhance access of financial services.
Source : Khmer Time
05 July 2023
IMT road to be ready by 2027, India keen on Cambodia linkage
The 1,360-km long India-Myanmar-Thailand (IMT) Trilateral Highway is expected to be operational by 2027 and India is keen to extend it to Cambodia, Laos and Vietnam under its Act East policy. The highway is also part of India’s Act East policy, a successor to the Look East policy, a diplomatic initiative to promote economic and cultural relations between India and the Asia Pacific region. It was India’s Prime Minister Narendra Modi who suggested that the highway should expand to Cambodia, Laos, and Vietnam. Discussions were also held in this regard during the ASEAN-India Summit in Phnom Penh in November last year, where it was agreed upon to give a push to the highway work for early completion and take up its extension to Laos, Cambodia and Vietnam. A joint statement released after the Summit, attended by a high-level delegation led by India’s Vice-President Jagdeep Dhankhar, underlined the need to link the Master Plan on ASEAN Connectivity (MPAC) 2025 and India’s initiatives under its Act East Policy.
Source : Khmer time
05 July 2023
Phnom Penh-based ACLEDA secures $100M for strategic growth
Chinese-sponsored Asian Infrastructure and Investment Bank’s (AIIB) $100 million loan to locally public-listed ACLEDA Bank Plc will fund the latter’s domestic expansion and increase investor confidence in the Phnom Penh-based lender, according to the head of the Cambodia Securities Exchange (CSX). The loan will have a five-year term, with a variable interest rate from 8.8-11 per cent presumably per-annum – and anticipated first disbursement date in December. “This facility will provide new loans to micro, small and medium enterprises [MSME]. The long-term facility is to support strategic growth and diversification of funding sources in line with the bank’s plan,” ACLEDA said in a filing to the CSX. “Listing on the CSX gives them [companies] much credibility, allowing them to easily obtain loans or credit, particularly from foreign lenders who might offer them low interest rates. The debt will help firms to growth more as they become better positioned to expand their business.
Source : The Phnom Penh Post
06 July 2023
For Vietnam, Cambodia and India are the fastest reviving markets
At present, Cambodia is the fastest-reviving tourism market of Vietnam with a rise of almost 338% in the first half of 2023 in opposition to the levels of pre-pandemic times, followed by India at almost 236%. Laos was positioned third with a rise of 117%, followed almost 108% Thailand and Singapore 107%, as per the records of Vietnam National Administration of Tourism. In recent years, the launch of a series of direct routes has made Vietnam a top choice among travelers from India. The United States at 95% and Australia at 92% are two markets that revived close to the levels of pre-pandemic times. The U.K. 79%, Germany at 84%, and South Korea 77% are some other markets which have been seeing major recovery.
Source : Khmer Time
06 July 2023
World Bank issues recommendations for Cambodia’s blue economy
The World Bank (WB) has released a set of recommendations for Cambodia’s sustainable blue economy development along with an analysis that focuses on three fundamental areas sectors related to marine policy, marine spatial planning and coastal livelihoods including blue growth sectors, said a report released on Monday. The report titled ‘Building a Blue Economy Roadmap for Cambodia’ pointed out that Kingdom’s coastlines make up a vital component of Cambodia’s national economy, contributing to the country’s growth, employment and food security in addition to the provision of coastal communities with critical ecosystem services that provide natural protection against adverse impacts of climate change. WB has provided Cambodia with short- and medium-term recommendations on over ten main areas including data and knowledge gaps, coordination mechanisms, legal and policy frameworks, sustainable financing and stakeholder engagement.
Source : Khmer Time
07 July 2023
RCEP, FTAs to attract more investments to Cambodia
The Regional Comprehensive Economic Partnership (RCEP) free trade pact and the bilateral free trade agreements (FTAs) will play a crucial role in attracting more foreign direct investments to Cambodia, Cambodia’s central bank said in a report released on Thursday. In addition to the RCEP, the world’s largest free trade deal engaged with 15 Asia-Pacific countries, Cambodia has bilateral FTAs with China, South Korea and the United Arab Emirates. “On the back of the implementation of the RCEP agreement and the bilateral FTAs, the kingdom is expected to attract more investments in the coming years that will boost productivity and promote economic diversification,” said a National Bank of Cambodia’s financial stability report. Cambodia attracted the fixed asset investment of 4.68 billion U.S. dollars in 2022, a year-on-year increase of 7.5 percent from 4.35 billion dollars.
Source : Khmer Time
07 July 2023
Cambodia, US vow to expand cooperation to boost trade and investment
Cambodia and the United States are committed to further strengthening and expanding cooperation to increase trade and investment. Cambodia strives to benefit from Cambodian-US trade, ranking as the fourth largest exporter to the US market and the third largest beneficiary of the Generalized System of Preferences (GSP) from the United States. During the meeting, the two sides discussed strengthening cooperation to further strengthen Cambodia-US relations in all aspects to increase their investment in Cambodia in many other fields.
Source : Khmer Time
