Investment Hightlights
Cambodia Weekly Financial News
2023-11-11View Times｜ 1110
Cambodia Weekly Financial News
November 06 ~ 10, 2023
06 November 2023
SERC backs carbon market push in Cambodia’s exchange sector
Carbon market is being pitched as a local exchange sector by the Securities and Exchange Regulator of Cambodia (SERC). Cambodia sells carbon credit abroad, creating the opportunity for creating a carbon credit trading market in the form of carbon exchange, said Sou Socheat, Director-General for the Securities and Exchange Regulator of Cambodia. The prospect of setting up a carbon market in Cambodia should be the subject of a study between the SERC, the Asia Development Bank and Global Green Growth Institute Cambodia (GGGI). The new carbon market is located in the two ASEAN countries, namely Singapore and Indonesia. “Based on experiences learnt from Singapore and Indonesia, I think that we have a foundation for conducting study (carbon market),” Sovicheat said.
Source : Khmer Times
06 November 2023
Electrical machinery sales close to double as tech exports surge
Cambodia's exports of electrical machinery, equipment and related products surpassed $2.4 billion in the first nine months of 2023, according to the General Department of Customs and Excise (GDCE). The exports, classified under Harmonized System (HS) Code 85, reached a value of $2.476 billion between January and September 2023, marking a 93.5% increase from the $1.28 billion recorded in the corresponding interval in 2022. This accounts for 14.6% of Cambodia’s near $17 billion total export revenue during the period. Hong Vanak, an economist at the Royal Academy of Cambodia’s International Relations Institute, said on November 6 that the country’s progressive development and strategic efforts in drawing both local and international investors have turned the country into a diversified production hub for the global market. He attributed the export growth of these products to a variety of factors including the country’s political stability, strategic geographical location, cost-effective and plentiful skilled labor, efficient transportation network, investment-friendly legislation and access to export markets with preferential tariff agreements.
Source : The Phnom Penh Post
06 November 2023
MJQE shows considerable Q3 earnings
MJQE became the first educational company to list on the Cambodia Securities Exchange (CSX) on June 28, successfully raising over $5 million through its initial public offering (IPO) on the local bourse’s Main Board. In its latest financial statement to the CSX on November 3, the company disclosed that its revenue for Q3 2023 exceeded 31.249 billion riels ($7.628 million), marking a sharp increase of more than 9 billion riel (over $2.198 million) in Q2. This represents a 41% growth when compared with Q3 2022, which recorded revenues of more than 22.197 billion riel ($5.42 million). The company’s operating profit witnessed a substantial rise of more than 2.647 billion riel ($645,262), an increase of 290% from Q2’s 911.62 million riel ($224,260) to Q3’s 3.559 billion riel ($867,733). “Despite the seasonal dip typically seen in the third quarter, exasperated by the absence of American Intercon School (AIS) revenue during their summer break, we have managed to substantially elevate our operational efficiency this fiscal year, resulting in a significant enhancement of our bottom line,” stated Quach Mengly, MJQE’s chairman and CEO.
Source : The Phnom Penh Post
07 November 2023
Kingdom’s private segment debt relatively lower in region
Amid worries about the increasing private sector debts posing challenges to the country’s banking sector in particular and the economy in general, a study by one of the leading Asian financial groups has found that Cambodia’s private sector ‘debt levels’ are relatively lower when compared to other countries, especially the developed ones in the region. According to the National Bank of Cambodia’s (NBC) 2022 annual report, the private sector loans reached $56.1 billion last year. While the loans obtained by the private sector from commercial banks accounted for over $46 billion, loans from microfinance institutions touched $9.7 billion. Commercial bank loans grew by 19.3 percent and micro-finance loans by 25 percent last year compared to 2021. “The Cambodian banking industry is facing increasing systemic risks due to the looming economic uncertainty and rising non-performing loans (NPLs). Key indicators when compared to the GDP, such as total credit, credit non-financial, and domestic credit to private sector are recorded at 195 percent, 188 percent, and 177 percent, respectively, during of the end of 2022,” the study said.
Source : Khmer Times
07 November 2023
Digital system boosts business registrations
Over 31,000 businesses, boasting a combined capital exceeding $8.9 billion, have successfully completed their registration through the Online Business Registration System (OBRS) via its IT Platform phase 1. The initial phase of the portal, launched by government representatives on June 15, 2020, saw the integration of six ministries and state-run institutions. These comprised the Finance, Interior, Commerce and Labor Ministries, along with the General Department of Taxation (GDT) and the Council for the Development of Cambodia (CDC). OBRS’s official social network reports that, as of midnight on November 5, the platform had successfully registered 31,027 companies with a total share capital amounting to $8.91 billion. The current registered share capital is categorized by business activity, with building construction claiming the majority at $1.1 billion, or 12.35%. This is followed by hotels and restaurants at $948 million (10.65%), real estate at $944 million (10.6%), accommodation services at $897 million, management consulting at $488 million (5.48%) and the manufacturing of wearing apparel (excluding fur) at $469 million (5.26%). Classified as ‘Others’, the remaining constitutes $4.96 billion, or 55.67% of the total.
Source: The Phnom Penh Post
08 November 2023
CDC welcomes Chinese companies interested in investing in Cambodia
Kong Vimean, Secretary General of the General Secretariat of the Council for the Development of Cambodia (CDC), welcomed China MCC22 Group Corporation Ltd, which is interested in studying and investing in Cambodia. He made this statement on the occasion of a meeting with the delegation of China MCC22 Group Corporation Ltd., led by Guo KongSong, General Manager of the Company’s Foreign Trade Department, on November 8. The purpose of this meeting was to enable the company to discuss more investment opportunities in various sectors in Cambodia in line with its investment objectives, such as infrastructure construction, wastewater treatment systems, expressways, mining plants, and the establishment of industrial parks, real estate, and construction materials factories.
Source: Khmer Times
08 November 2023
PM says Preah Sihanouk set to be country’s logistics hub
The Royal Government of Cambodia is on a mission to develop the coastal Preah Sihanouk province as the logistics hub of the country, said Prime Minister Hun Manet yesterday. Mr. Hun Manet said the Ministry of Public Works and Transport (MPWT) has been entrusted with the task of developing the railway and deep seaport infrastructure to facilitate the efficient movement of goods. “The first phase of the expansion of the deep-sea port will help increase the flow of goods through Cambodia and also the transport of goods from Cambodia. This will make cross-border shipments through Cambodia’s deep-sea port more profitable,” the premier said. If the first phase of the deep-water port expansion is successful, it will facilitate the movement of about 93 percent of cargo containers, reducing the cost of shipping from between $400 and $500 now to only $200 per container, he said. Sihanoukville Autonomous Port Terminal in the first phase has a length of 350 meters and a depth of 14.5 meters. It is being built with a loan of more than $200 million from Japan.
Source: Khmer Times
09 November 2023
DBD Engineering report strong Q3 growth
DBD Engineering Plc, the first company to list on the Cambodia Securities Exchange’s (CSX) secondary Growth Board, reported robust growth in the third quarter, despite a slowdown in the local construction sector. The multi-purpose engineering and construction firm posted a total operating profit of 1.505 billion riel ($370,272) in Q3 2023, a rise of 17.9% from the 1.276 billion riels ($311,411) recorded in the preceding quarter, according to their report to the local bourse on November 8. Neang Vithy, chairman and managing director at DBD, credited the increase in operating revenue to substantial growth in gross profits by 2382.52% and other income by 566.95%. He highlighted that the revenue uplift was due to a 34.18% rise in construction revenue and a 447.66% surge in the sale of goods. “I wish to convey my gratitude to the board of directors, management and staff for their sound advice and unwavering dedication that has sustained the company’s growth,” he said in the filing.
Source: The Phnom Penh Post
09 November 2023
Central government revenue hits $4.6 billion year to date
Cambodia's budgetary central government (BCG) revenue surpassed 19 trillion riels (over $4.6 billion) in the first nine months of 2023, reaching nearly 73% of the financial target for the year. This marks a decline of around 3% compared to the same period in the previous year, as reported by the Ministry of Economy and Finance. Tax revenue contributed 16.251 trillion riels ($3.95 billion), accounting for 85.06%, while grants and other income stood at 1.009 trillion riel ($245.17 million) and 1.846 trillion riels ($448.57 million), making up 5.28% and 9.66%, respectively. Government expenditures reached 20.823 trillion riels ($5.06 billion) in the first nine months of 2023, constituting 63.31% of the year’s BL. Operational expenses accounted for 15.142 trillion riels ($3.68 billion), or 72.72% of the BL, while the net acquisition of non-financial assets stood at 5.246 trillion riels ($1.27 billion), representing 14.03%. This marked a 14.03% rise in overall expenditure from the previous year, with a 15.57% increase in expenses and a sharp 55.40% increase in the net acquisition of non-financial assets.
Source: Khmer Times
09 November 2023
Cambodia achieves remarkable rice sales exceeding $1.2 billion
Cambodia has garnered over $1.2 billion from exporting milled and paddy rice to 59 destinations, predominantly in China, the EU and ASEAN nations, despite a regional and global economic deceleration. The industrial sector suggests a continued surge in food demand, according to the Kingdom’s apex rice group. The Cambodia Rice Federation (CRF) reported on November 9 that 76% of the annual target of 700,000 tons of rice had been exported within the first ten months of 2023. This amounted to approximately 530,000 tons valued at $377.5 million and facilitated by 57 exporters. The exports included 177,285 tons worth $115.30 million to China and its autonomous regions, 217,068 tons valued at $155.58 million to 26 EU countries, 62,492 tons at $42.32 million to six ASEAN members and 73,079 tons totaling $64.30 million to a further 25 destinations including Africa and the Middle-East. October 2023 saw Cambodia’s first exports of milled rice to Indonesia totaling 6,500 tons worth $4.22 million, with 3,500 tons already delivered. Exports of the commodity were dominated by fragrant rice at 81.79%, followed by white rice at 13.3%, parboiled rice at 3.24%, organic rice at 1.65% and Japonica at a mere 0.01%.
Source: The Phnom Penh Post
10 November 2023
ACLEDA Securities Plc brokers 86 percent of CSX trade in Q3
ACLEDA Securities Plc carried out a little over 86 percent of the trading brokerage at the Cambodian Securities Exchange (CSX) during the third quarter of 2023, making it the winner of CSX Best Security Broker Award. CSX said that the exchange said that investors from the part of ACLEDA Securities Plc carried out securities trade valued at nearly KHR 94 billion, which is approximately 86.61 percent of the total securities trading volume. “There were nearly 1,200 new trading accounts that have been created by the company. ACLEDA Securities Plc along with its partners organized public events with the presence of many participants and also offered special programs to new customers; all of which is to educate, promote and enhance the securities trading activities,” CSX said in a statement issued. In its 2022 Annual Report, ACLEDA Securities Chairwoman Mar Amara said the company continues implementing its foremost goal, outlined in its five-year strategy (2021-2025) to be a leading securities brokerage firm with its competitive advantages in the competitive securities market.
Source: Khmer Times
10 November 2023
Cambodian delegation in US seeks business ties
A Cambodian delegation has reached the United States in search of investment and trade partnerships with US firms. According to a statement from the Ministry of Commerce, the delegation visited a number of businesses in Long Beach, California, and had a meeting with the representative of the California Trade Service, representatives of trade service in Long Beach, the US Export-Import Bank and the representative of Long Beach Port. Sarakmony said the delegation’s visit is aimed at seeking partnerships with US firms in trade and investment. “In the past, foreign businessmen came to seek investment and trade in Cambodia, but today, more than 100 Cambodian companies are seeking trade partnerships in the US,” he said. The US is Cambodia’s biggest export market, accounting for about 40 percent of the total exports. Cambodia’s exports to the US reached $6.8 billion in the first nine months, a drop of 2.1 percent from $7 billion for the same period in 2022, a report from the General Department of Customs and Excise showed.
Source: Khmer Times
Lady Aegies Comment : To be continue...............
