Investment Hightlights
Cambodia Weekly Financial News
2023-11-18View Times｜ 1071
Cambodia Weekly Financial News
November 13 ~ 17, 2023
13 November 2023
NBC advocates riel use for economic stability
The Cambodian central bank has emphasized a substantial increase in the use of local currency over the last two decades. The surge, it says, demonstrates public confidence and reflects the effectiveness of its monetary policy. Chea Serey, governor of the National Bank of Cambodia (NBC), made addressed a September 10 book launch and seminar titled, “Cambodian Dollarization: Its Policy Implications for LDCs’ Financial Development”. She noted that while dollarization had spurred economic recovery and growth, stabilizing the macroeconomics of the country over two decades, it also restricted the effectiveness of monetary policy. “The government and the NBC have consistently worked to enhance public trust in the riel. Since the early 2000s, market-oriented measures have increased riel demand, leading to a 16-fold rise in currency circulation from 0.85 trillion to 14.5 trillion riel,” she stated. “Promoting riel usage is a collective effort. It requires active and consistent support from all ministries, the private sector and the populace,” she added.
Source : The Phnom Penh Post
13 November 2023
Cambodia’s exports reach $18.5B in 10 months
Cambodia’s exports topped $18.59 billion, up 0.2 percent compared to the same period last year, a General Department of Customs and Excise report showed on Friday. The country’s main exports were apparel, footwear, travel goods, bicycles, and agricultural products such as rice, rubber, cassava, bananas, and mangoes. The US remained the Kingdom’s biggest market during the first ten months of this year with exports worth $7.49 billion, a 1.6 percent decrease from $7.61 billion during the same period a year ago. Exports to Vietnam rose 40 percent to $2.26 billion, from $1.66 billion while exports to China also increased 19.3 percent to $1.17 billion, the report showed. “Our strategy is to have the government and the private sector work together to set goals to boost exports of Cambodian products to foreign markets,” the Prime Minister said at a get-together with garment workers on September 19. Cambodia’s total imports came down by six percent to $20.07 billion, read the report.
Source : Khmer Times
14 November 2023
Cambodia-China trade tops $10B; ties strengthen amid global slump
Cambodia-China bilateral trade volume reached over $10 billion in the first ten months of 2023, marking a nearly 5% rise compared to the same period in 2022. Chinese imports to Cambodia accounted for almost 90% of the total, as per the General Department of Customs and Excise of Cambodia (GDCE). From January to October 2023, trade between the two nations totaled $10.07 billion, a 4.6% increase from $9.62 billion. Cambodia’s exports to China were valued at $1.18 billion, a 19.3% increase from $987.87 million in the corresponding period of 2022. Chinese exports to Cambodia for the interval were worth $8.89 billion, up 2.9% from $8.64 billion. The two countries’ strong relations are bolstered by the Cambodia-China Free Trade Agreement (CCFTA) and the Regional Comprehensive Economic Partnership Agreement (RCEP). He explained that Cambodia’s exports are significantly lower than its imports from China.
Source : The Phnom Penh Post
14 November 2023
Pestech ltd Q3 revenue notes a concerning 73.7% decline
Pestech (Cambodia) Plc (PEPC), a power infrastructure provider listed on the local bourse, reported a significant decrease in total revenue for the third quarter of 2023, attributed to the sluggish advancement of some of its projects in Cambodia. The company’s November 13 filing with the Cambodia Securities Exchange (CSX) revealed a revenue of 8.609 billion riel ($2.09 million), a 73.7% decline from the 32.756 billion riels ($7.97 million) recorded in the same period of the previous year. PEPC’s operating loss for Q3 2023 stood at 1.612 billion riels ($392.2 million), a stark contrast to the 2.459 billion riels ($598.2 million) operating profit in the same quarter of the preceding year, indicating a drop of 4.071 billion riel ($990.5 million) or 165.56%. The Cambodian unit of PEPC made its debut in the stock market with an initial public offering (IPO) on August 12, 2020. It issued 3.9 million shares, about 5.3% of its 74,945,000 total voting shares. They were priced at $0.76 per share, raising approximately $3 million for the company, as per the CSX.
Source : Khmer Times
14 November 2023
CIM, Tanncam, OBOR strike strategic partnership
Cambodia Investment Management Co Ltd (CIM) and Tanncam Investment Pte Ltd have become strategic shareholders, jointly acquiring 40% of OBOR Management (OBOR). The move aims to expand their arranger, investment advisory, mergers and acquisitions, and corporate finance services in the Kingdom. The partnership between OBOR, CIM and Tanncam reflects a unified vision for the country’s financial future. It underscores their commitment to driving economic growth by offering strategic financial solutions to Cambodian businesses and creating investment opportunities for international investors, as stated in the companies’ joint announcement. Anthony Galliano, group CEO of CIM, stated “In collaboration with Tanncam, we are resolute investors and fervent supporters of Cambodia.”. He emphasized the importance of foreign direct investment (FDI) in the economy, while also highlighting the role of financial markets as capital and liquidity providers to the government, businesses and entrepreneurs.
Source: The Phnom Penh Post
15 November 2023
NBC, Ant International to join forces on cross-border payments
National Bank of Cambodia (NBC) and Ant International will sign a memorandum of understanding (MoU) today for interoperable inbound and outbound cross-border payments via KHQR and Alipay+, according to an NBC press release. The NBC Governor will preside over three topics including the global policymaker’s dialogue on digitizing inclusion hosted at the Singapore EXPO Insights Stage. The first topic on digital finance policy will focus to render financial services more accessible, affordable and convenient by using technology amid the rapidly evolving digital landscape, addressing the financial needs of unbanked and underbanked population. The dialogue will explore innovative strategies and new paradigms necessary to collectively achieve comprehensive and inclusive financial services in an increasingly digital world. She will also address a seminar on universal trusted credentials to highlight the benefits that SMEs will receive from using Universal Trusted Credentials (UTC) in the financial system.
Source: Khmer Times
15 November 2023
Wing Bank to offer Agri-SME loans, quicken sector growth
The Ministry of Agriculture, Forestry and Fisheries and Wing Bank (Cambodia) Plc have announced the signing of a memorandum of understanding (MoU) aimed at bolstering agricultural development in the Kingdom. The partnership will facilitate accessible, low-interest loans to support the government’s Agriculture Priority policies, leveraging the innovative Wingagri supply chain platform designed to bolster the sector. According to a joint press release, the agreement will enable Wing to offer affordable loans to agricultural businesses identified by the ministry. The objective is to address the long-standing financing challenges in agricultural production chains, thereby enhancing the financial capabilities of these businesses. The ministry reports that the country’s agricultural sector achieved a significant milestone in 2022, with formal exports of products reaching 8.6 million tons across 74 markets with a total export value of nearly $5 billion. This represents 22.2 per cent of the Kingdom’s gross domestic product (GDP) for 2022, and a growth of 7.8 per cent from 2021
Source: The Phnom Penh Post
15 November 2023
SME Bank to allocate $50 million in funds for Siem Reap tourism boost
The allocation of funds through the Small and Medium Enterprise Bank of Cambodia Plc (SME Bank) is expected to be a vital and timely force in supporting and reviving businesses in Siem Reap province. The initiative, starting with an initial budget of $50 million, aims to assist tour operators in the province with reasonable interest rates and favorable terms, enabling them to secure financing suited to their business type. The government has also introduced tax incentives to help balance and alleviate financial strain on the tourism industry. The measures include exemption from all types of monthly taxes, except VAT and accommodation tax, for hotels, guesthouses, travel agencies and restaurants conducting business in the province and registered with the General Department of Taxation (GDT). The exemption is effective from October 2023 until the end of the first half of 2024.
Source: The Phnom Penh Post
15 November 2023
Central bank pioneer digital inclusion, currency
Cambodia’s central bank has emphasized the crucial role of the Bakong payment system in advancing financial inclusion among the unbanked population, particularly in fostering the development of a Central Bank Digital Currency (CBDC). Chea Serey, governor of the National Bank of Cambodia (NBC), expressed interest in digital currency while addressing the “Central Bank Digital Currency: Emerging Good Practices” conference. “I would like to take this opportunity to discuss some practical aspects of developing the Bakong payment system. Firstly, Bakong promotes interoperability and connectivity across various financial institutions in the country,” she said. “Secondly, it enhances the efficiency of payments in terms of cost, transparency and security. Thus, the [network] facilitates financial inclusion among the unbanked population and, importantly, encourages the use of local currency in electronic payments. According to Serey, the platform recently reached hundreds of millions of customers and handled a total of 63 million transactions. Between 2021 and 2022, the value and number of transactions by the network increased by 400% and 300%, respectively, totaling $15.4 billion.
Source: The Phnom Penh Post
16 November 2023
Nearly 700 trusts registered with $1.22 billion
The number of trusts registered in Cambodia has increased significantly showing that the relatively new trust segment is growing in popularity among foreign investors. As many as 683 trusts were registered with the Trust Regulator (TR) of Cambodia with an investment fund of $1.22 billion as of November 14 this year, Director General of the Trust Regulator Sok Dara said. “The dramatic growth of the trust sector is due to the confidence and understanding of investors, especially foreign investors, as well as the need for the banking sector to support their investments, especially in the real estate sector,” Dara said. Another 83 new trusts with an investment of $35 million will be registered soon, bringing the number of trusts to 766 by the end of November, he said. The 2019 Trust Law has set rules and procedures to establish, register, manage and control four types of trusts which are Commercial Trust, Public Trust, Social Trust, and Individual Trust. The Non-Banking Financial Services Authority has also recently issued guidelines for the recognition of appraisal companies and real estate appraisers in the field of trust investment.
Source: Khmer Times
16 November 2023
Cambodia’s first collective investment fund kicks off
Cambodia’s first collective investment scheme fund kicked off yesterday helping the public to tap into the capital markets of several Asia-Pacific economies through a single fund and with investment starting from as little as $500. Addressing a press conference yesterday in Phnom Penh, Sou Socheat, Director General of the Securities and Exchange Regulator of Cambodia (SERC) said that Banjaran Asset Management (Cambodia) Plc (BAMC) was granted approval to launch the BAMC Asia Equity Fund (BAEF) in the Kingdom after a rigorous scrutiny. Gan Ben Lee, Executive Director of BAMC, said that the fund will be invested in a minimum of 30 major stocks across these bourses. At least 10 percent of the fund will be invested in stocks listed with the Cambodia Securities Exchange (CSX). According to Lee, the asset management company aims to deliver an expected annual return of 7 to 10 percent over the medium to long term. The fund is expected to be diversified with investments across various sectors such as banking, property, industrials, consumer items, telecoms and technology. The fund is domiciled in Cambodia and is USD-denominated. It will accept subscriptions and redemptions daily and the daily unit price of the fund will be available on various media channels.
Source: Khmer Times
17 November 2023
CSX unveils phase two of new online stock trading accounts
The Cambodia Securities Exchange (CSX) has officially launched phase two of its online trading account registration system. The development is expected to increase the number of trading accounts on the CSX to 50,000 by the end of the year and to continue doubling by the end of 2024. The November 16 kickoff coincided with the “My First Stock 2023” event organized by CSX, held in Phnom Penh. According to the local bourse, the second phase allows investors to instantly create an account via the PhsarHun mobile app. The process makes it easier and faster for would-be investors to obtain a trading account, allowing them to deposit money and trade immediately. Hong Sok Hour, CEO of CSX, stated that in alignment with the government’s vision, the exchange has advanced to a new generation, CSX 3.0, by facilitating the immediate opening of online trading accounts post-verification. He said the move marks a significant development for the bourse, which has already opened around 44,000 trading accounts, and expects the numbers to reach 50,000 by the end of 2023 and 100,000 by 2024.
Source: The Phnom Penh Post
17 November 2023
New trust law stabilizes real estate sector
The Trust Regulator (TR) is making a significant contribution to stabilizing the real estate sector in Cambodia, aiding its gradual recovery from the adverse effects of the current global economic crisis. Sok Dara, director-general of the TR, made the remarks at the “Let’s Talk Trust” training program, themed, “Trust: A Trusted Mechanism for Real Estate Investment”. The November 14 event was organized by the TR in collaboration with the Housing Development Association of Cambodia (HDAC) at HDAC headquarters. Dara stated November 15 that trust in the real estate sector has seen substantial growth, particularly in recent months. As of the second week of November, trust registrations increased to 683 cases, with investments totaling $1.223 billion. Before 2021, the sector had only 17 legal listings, with investments around $156 million, according to the TR. Out of the cases, 605 involve trust investment in the real estate sector. Foreigners registered 552 of these, contributing capital of $580 million. Among foreign registrations, 541 cases pertain to investment trusts in the real estate sector and 11 others involve real estate investment-related trusts using the escrow services system.
Source: The Phnom Penh Post
17 November 2023
PPSP aims to raise $15M for green bond issuance on CSX
The publicly listed Royal Group Phnom Penh Special Economic Zone (PPSP) plans to raise an additional $15 million through the issuance of a green bond on the Cambodia Securities Exchange (CSX). The effort is part of their investment expansion into eco-friendly infrastructure. The company announced that its board of directors had approved the listing during their meeting on November 10, with the aim of generating additional funds for business expansion, according a CSX statement on November 13. “PPSP would like to inform investors and the public that the resolution for the issuance of debt securities (green bond) to qualified investors of up to $15 million for a tenor of five years was approved by the board of directors during their meeting on November 10,” the company stated. Proceeds from the bond will be allocated for sustainable infrastructure. However, the issuance of the bond is still subject to review and approval by the relevant parties involved in the process of guaranteeing the issuance. The company stated that it is currently in the process of seeking approval from the Securities and Exchange Regulator of Cambodia (SERC) and the CSX, in compliance with applicable laws and regulations. The process is expected to be completed by early next year.
Source: The Phnom Penh Post
Lady Aegies Comment : To be continue...............
