Cambodia's Financial Environment
Cambodia Weekly Financial News
2024-03-30View Times｜ 1079
Cambodia Weekly Financial News
March 25 ~ 29, 2024
25 March 2024
Cambodia is set to host the 47th Association of Development Financing Institutions (DFIs) in
Asia and the Pacific’s ( ADFIAP) annual meetings from May 15-17.
Cambodia is set to host the 47th Association of Development Financing Institutions (DFIs) in Asia and the Pacific’s (ADFIAP) annual meetings from May 15-17, which will bring together delegates from approximately 41 countries to exchange knowledge and expertise. This year’s meetings are organized under the theme “ DFIs Role in Sustainable Finance Ecosystem: Cultivating a Climate - Smart and Sustainable Future “. Kao Thach, CEO of the state-owned Agricultural and Rural Development Bank ( ARDB), stated “The annual meetings will enhance cooperation and partnerships among institutions that finance development in the Asia-Pacific region. This is a great opportunity for Cambodia to share its knowledge and experiences concerning financing implementation programs with all the Asia-Pacific financial institutions.”. Kao Thach also highlighted that the gathering would provide Cambodia an opportunity to deepen its diplomatic relations with the approximately 40 association member states and to learn from the participating institutions.
Source : The Phnom Penh Post
25 March 2024
Cambodia focused on FTA formalizing economy, says Minister
Cambodia’s new investment law, tax incentives for foreign investments and businesses setting up operations in Cambodia are plus points said, Hem Vanndy, Minister of Industry, Science, Technology and Innovation, Cambodia at a seminar in Singapore, titled, ‘Cambodia: An Overlooked Destination for Business and Investment’ Minster Vanndy noted Cambodia’s new investment law and tax incentives for foreign investments and businesses setting up operations in the country. The Minister mentioned that countries are interested in Cambodia's purchasing power, given its population of 16.7 million. He also highlighted the size of Cambodia's informal economy, noting that while a majority of the country's economy is informal, there is interest among business owners in expanding and joining the formal sector, which could significantly boost GDP.
Source : Khmer times
25 March 2024
Riel deposits in microfinance institutions to increase by 16% by the end of 2023
By the end of 2023, the microfinance sector achieves significant achievements, with loans in riel increasing to 25% of the total loan portfolio, while deposits in riel increased to 16% of total deposits. This figure exceeds the limits set by regulations, which show an increase in confidence in the national currency. Riel credit balances increased to 5.56 trillion riels, while riel deposits at the four deposit-taking microfinance institutions (MDIs) increased to 1.52 trillion riels. This data shows a significant shift in public savings habits towards local currency savings. This indicates that Riel payment transactions through the Bakong payment system increased significantly by 3.4 times than the dollar-denominated payment transactions. This growth represents a joint move towards strengthening the role of the riel as a means of commodity exchange, bridging the gap between digital commerce and traditional commerce. This is also a clear indication of Cambodia’s journey towards autonomy and economic sustainability.
Source : The Cambodia China Times
26 March 2024
Cambodia’s regulator environments favorable for banks, fintech
Teong Hoon Ong, Director, Phillip Bank Plc, at a seminar on ‘Cambodia: An Overlooked Destination for Business and Investment’ in Singapore. said the country has seen the establishment of various financial institutions, including commercial banks, microfinance institutions, payment service institutions, insurance companies, securities firms, and asset management companies. He also states Last February, Cambodia was taken off the grey list by the Financial Action Task Force (FATF), as it tightened its anti-money-laundering measures. “Improved Know-Your-Customer (KYC) rules and anti-money laundering checks are good. Otherwise, the country will remain on the grey or black list,” Cambodia is also engaging in a drive towards de-dollarization and increased cross-border transactions. “Bakong has been a game changer. Cross-border transactions are now possible in other countries like Vietnam and Thailand. The NBC is also in talks with countries like Singapore,” he added.
Source : Khmer Times
26 March 2024
Prime Minister urges Cambodian- Lao Friendship
Associations to build more people to people relation
Cambodian Premier Hun Manet received a courtesy call from Khambai Damlat, President of the Lao-Cambodian Friendship Association, during his two-day official visit to Lao PDR. Premier Hun Manet emphasized the importance of enhancing communication between the people of Cambodia and Laos to promote trade, tourism, and other key sectors of both nations. The prime Minister also expressed his appreciation for the Cambodian-Lao and Loa-Cambodian Friendship Associations to do their best to facilitate greater connectivity between both counties. Kambai Damlat congratulated the achievements of the Royal Government of Cambodia as well as the improvement of Cambodians’ living standards. The Lao-Cambodian Friendship Association president spoke highly of the visit of Samdech Thipadei Hun Manet to Laos, expressing his conviction that this visit will contribute to further fostering the cooperation and friendship between the two countries.
Source: Khmer Times
27 March 2024
Single Portal registers $3.76 billion investment
The online Business Registration System knows as the Single Portal under the Ministry of Economy and Finance( MEF) registered business ( OBR ) with a total of $3.76 billion in investment capital in 2023. As many as 3,454 businesses were registered at the single port last year, an increase of 467 percent compared to 4,139 businesses registered in 2022, In terms of investment value by sector, business activities related to accommodation services brought 21.46 percent of total investment capital, followed by management consultant activities at 7.58 percent, real estate at 7.55 percent, rubber manufacturing at 7.20 percent, garment manufacturing at 6.01 percent, and other mixed sectors at 50.20 percent. It also mentions that, Cambodia, meanwhile, approved fixed-asset investment projects worth $1.39 billion in the first two months of 2024, a significant rise of about 500 percent compared to the same period last year, a Council for the Development of Cambodia (CDC)’s , Some $545 million, or 39 percent of the total investment capital, was from China during the January-February period this year, report said recently.
Source: Khmer Times
27 March 2024
The Ascott Limited signs agreement with OCIC to launch
SOMERSET DIAMOND BAY GARDEN PHNOM PENH
Somerset Diamond Bay Garden Phnom Penh will be part of Diamond Bay Garden, a 37 story condominium development project that offers a view of the Mekong Reiver. The condominium project, developed by OCIC has been named Best Waterfront Condominium Asia- Pacific by Property Guru in 2023. The collaboration between Ascott and OCIC aims to improve the quality of residential services and living spaces in Koh Pich, which is becoming a CBD and growing rapidly in Phnom Penh. Koh Pich has been selected as a growing location of commercial and residential centers, leading to a strategic location for investment, business and living. With spectacular views of the Mekong, Tonle Sap and Tonle Bassac rivers, as well as offering many benefits of amusement parks, cafes and canteen options, as well as the rise of new technologies and businesses of ecosystems. Developments in the Koh Pich community and the ongoing improvement of infrastructure have contributed to the addition of new businesses and restaurant options over the last 18 months. These developments are located around Somerset Diamond Bay Garden, another new location.
Source: Khmer times
27 March 2024
SERC urges CIC Partner to protect investors’ interests
The Securities and Exchange Regulator of Cambodia (SERC) has urged Cambodia Investors Capital Partner (CIC Partner) to monitor and protect the interests of the investors. In a statement issued yesterday, SERC said, “The SERC will continue to monitor and manage the work of the CIC and Fund Rehabilitation Commission on a regular basis and regularly review the principles, laws and regulations of the securities sector to maximize the interests of legitimate investors.” The SERC has put in place a series of measures, requiring the CIC Partner to take steps to reform, monitor legitimate investors, and properly manage assets in accordance with development goals to ensure the benefit of investors in the company, it added. The statement was issued after some of the investors, who poured money into an investment fund managed by CIC Partner, urged the Government and Justice Ministry to open an investigation into the company and its activities, claiming it swindled a total of $90 million from them.
Source: Khmer times
28 March 2024
Union of Youth Federations of Cambodia (UYFC)
lends a hand to boost skills initiative
The Ministry of Labour and Vocational Training ( MLVT) signed a MoU with the Union of Youth Federations of Cambodia (UYFC) to strengthen the massive initiative of the government to provide vocational and technical training to 1.5 million youth from poor and vulnerable families. This cooperation aim to strengthen the campaign and encourage the youth to register for the programmed. This also helps the youth to obtain career guidance and find jobs as well. Asian Development Bank revealed that Cambodia has a populations of 6.7 million and that 65 percent of whom are younger than 30 years old. An estimated 9.3 million people are active in the labor market, and women account for 49 percent of the total labor force aged 15-64. But the school completion rates in the country remain low, with only 7.4 percent of the labor force having completed some form of post-secondary education. The labor productivity in Cambodia calculated as $3.6 per hour worked remains lower than that of several other countries in the Southeast Asian region such as Vietnam ($7.3) and Indonesia ($13.1). This low productivity has been widely attributed to the absence of adequate skills education.
Source: Khmer Times
28 March 2024
BRI-backed economic zone in Cambodia reports
38.3 percentages trade growth during January-February
The values of imports and exports passing through the Sihanoukville Special Economic Zone (SSEZ) in Cambodia hit $628 million in the first two months of 2024. ”The growth indicated that the SSEZ is one of the key catalysts for Cambodia’s development” said the news .Since the start of 2024, the 11 spare Km SSEZ had attracted eight new enterprises, bringing the total number of the enterprises in the zone to 188 so far, with more than 30,000jobs created. Neak Chandarith, director of the Cambodia 21st Century Maritime Silk Road Research Center, said that the SSEZ is situated near the deep water Sihanoukville Autonomous Port, which is very convenient for trade exchange between Cambodia and the rest of the world. The SSEZ, together with other flagship BRI project, has been playing a crucial role in helping Cambodia achieve its ambitious targets of becoming an upper – middle income country by 2030 and a high income nation by 2050.
Source: Khmer times
28 March 2024
Cambodia focuses on diplomacy for growth
A senior official from the Ministry of Foreign Affairs and International Cooperation has encouraged officials to engage in economic diplomacy to enhance Cambodia’s prestige, peace, stability and safety, and to counter negative information that could damage the nation's reputation. Ministry secretary of state Chhiv Yiseang made the remarks during a meeting held to review the three-year achievement of the country’s economic diplomacy strategies and gather input for the 2024-28 plan. He emphasized that, in these circumstances, the country’s commercial diplomacy policy remains crucial in opening up international trade and strengthening socio-economic resilience, thereby maximizing benefits for the country. “We need to create activities and programmed in collaboration with relevant ministries and institutions and attend events to showcase Cambodia's prestige, peace, stability and safety, and to neutralize negative information that tarnishes our reputation, especially in investment and tourism,” he added.
Source: Phnom Penh Post
29 March 2024
The Association of Banks in Cambodia (ABC) and
Cambodia Microfinance Association (CMA) held a workshop to
discuss ways to promote financial literacy in Cambodia.
With support from the National Bank of Cambodia (NBC), the Stakeholders’ Reflection Workshop on the Progress and Way Forward on Financial Literacy in Cambodia was held on March 26 at the NBC’s Center for Banking Studies. The participants included Heng Bomakara, First Deputy Director General of Banking Supervision at NBC, Jo Scheuer, Resident Coordinator of the UN Resident Coordinator Office, Makoto Kurokawa, Council Member of the ABC, Dith Nita, Chairwoman of the CMA and representative from CBS as well as national and international development partners IFC, UNCDF and 40 other stakeholders. The workshop discussed the progress, challenges and opportunities of financial inclusion and financial literacy and efforts to synergize all collaborations from all stakeholders to effectively implement the programs. It also aimed to equip knowledge and skills among key players on a framework on how to effectively design, implement, monitor, and evaluate financial literacy programs
Source: Khmer Times
29 March 2024
Opportunity for growth in digital payments in Cambodia: Visa study
Visa, a world leader in digital payments, has released findings from its latest Visa Consumer Payment Attitudes study, indicating an opportunity for Cambodians to embrace digital payments, as they keep pace with their Southeast Asian neighbours. As Cambodia continues its journey in adopting digital payment modes, 23% of Cambodians who were surveyed reported going cashless in 2023. Cambodia leads the region in using internet banking for payments – with 82% of respondents using internet banking most frequently for bill payments, convenience store purchases and food & dining. 72% said they use a banking app, led by Gen Z, for mostly peer-to-peer money transfers and bill payments. Consumers have also noticed an increase in cashless acceptance. The study found that 75% of surveyed respondents said they observed more stores accepting mobile wallet payments compared to a year earlier.
Source: Khmer Times
Lady Aegies Comment : To be continue...............
