Investment Hightlights
Cambodia Weekly Financial News October 02~06, 2023
2023-10-07View Times｜ 1088
Cambodia Weekly Financial News
October 02~06, 2023
02 October 2023
CamGSM expected to secure bond approval
Listed local telecom provider CamGSM Plc (ticker: CGSM) has received preliminary approval from the Cambodia Securities Exchange (CSX) for a sustainable bond listing eligibility review. This follows its equity securities listing in June, making it the second firm to seek a corporate bond listing on the bourse this year. The CSX confirmed on September 28 that CamGSM had secured this approval in principle. Before its securities can be officially traded on the bourse, the firm must gain offering approval from the Securities and Exchange Regulator of Cambodia (SERC) and fulfil additional CSX listing criteria. Hong Sok Hour, CEO of CSX, told The Post on October 2 that CamGSM is planning to issue a corporate green bond targeting institutional investors. As stated in their September 19 filing, CamGSM shows that revenue reached nearly 186 billion riels ($45.4 million) in Q2. After going public on June 27 with 9.3 million shares listed on CSX at 2,270 riel per share, they generated gross proceeds of $5.3 million.
Lady Aegies Comment:
To be continue…………
Source : The Phnom Penh Post
02 October 2023
GDCE to embark on new strategy for customs reform in early 2024
The General Department of Customs and Excise (GDCE) of the Ministry of Economy and Finance (MEF) plans to launch the new Strategy for Customs Reform and Modernization 2024-2028 on January 1, 2024, after the current one that has been implemented from 2019-2023 with a set of results that is being assessed, said a GDCE statement. Nhem said that the strategy has been drafted with inputs from the development partners JICA, IMF, ADB, EU Delegation to Cambodia and UNDP for its effective implementation in consistency with the Pentagonal Strategy-Phase I that the government has initiated for the next five years. “The strategy will focus on six strategic goals that include the effectiveness of the revenue collection, trade facilitation and customs cooperation, law compliance and enforcement, legal affairs and regulations, information technology and lastly institutional capacity,” said Nhem. Nhem said recently that the GDCE has earned $564 million in customs and excise revenue during the first quarter of this year, a year-on-year decrease of more than 5 percent from $597 million.
Lady Aegies Comment:
To be continue…………
Source : Khmer Time
03 October 2023
Insurance sector logs $31 million premium in August
Cambodia’s insurance sector collected $31.6 million in premiums in August this year, a 1.6 percent increase compared to the same month last year. The gross premium of the general insurance market in June this year rose 5.65 percent to $13.5 million and from $12.8 million in August 2022, according to an Insurance Regulator of Cambodia report issued last week. Life insurance premiums totaled $17.3 million, down 2.43 percent, while micro-insurance premiums went up by 40.2 percent, the report said. The growth was driven by 18 general insurers, 14 life insurers, seven micro-insurance companies, one reinsurance firm and 20 insurance brokers, 34 corporate agents, and loss adjusters. The increasing insurance premiums last year reflected the strength of the insurance market in Cambodia, as the insurance sector contributed about 1.17 percent to the country’s gross domestic product (GDP), according to IRC.
Lady Aegies Comment:
To be continue…………
Source : Khmer Time
03 October 2023
Electrical exports spark to $2.1B
Exports of electrical machinery, equipment and related products surpassed $2.1 billion in the first eight months of 2023, marking a near 100 per cent growth from the same period last year, according to the General Department of Customs and Excise (GDCE). GDCE’s data highlights that exports under Chapter HS 2 Code 85 reached $2.162 billion, a 98.5 per cent spike from $1.089 billion year-on-year. These figures represent 13.8 per cent of the Kingdom’s total exports, which amounted to over $15.692 billion during the corresponding period. “Cambodia is steadily becoming a key source of semi-finished products for global markets,” Lim Heng, vice-president of the Cambodia Chamber of Commerce (CCC) said, emphasizing the ongoing evolution of the country’s production chain, which increasingly relies on advanced technology and a robust industrial framework. Chea Chandara, president of the Logistics and Supply Chain Business Association in Cambodia (LOSCBA), highlighted other driving factors behind this uptick. Heng also noted the country’s advantageous political and trade ties, supplemented by bilateral and multilateral free trade agreements (FTAs). The nation’s strategic geographical position, favorable investment laws, reasonable energy and labor costs and an efficient transport system have consistently drawn both domestic and international investors.
Lady Aegies Comment:
To be continue…………
Source : The Phnom Penh Post
03 October 2023
Cambodia to get slice of ADB’s $100 billion new funding capacity
Meas Soksesan, Spokesman and Secretary of State of the Ministry of Economy and Finance (MEF), said that the RGC would set the specific amount that it would get out of the $100 billion from the ADB after MEF’s officials receive and review consistent budget and action plans of relevant ministries and institutions during the next five or ten years. According to the news release, the measures, which will enable ADB to provide up to $360 billion of its own financing to its DMCs and private sector clients over the next decade. “The expansion of available funds will be further leveraged through mobilizing private and domestic capital to move from the billions to trillions required to tackle the climate crisis. The expansion is achieved by optimizing the [bank’s] prudential level of capitalization while maintaining its overall risk appetite”. ADB President Masatsugu Asakawa said that these important reforms will significantly expand ADB’s ability to support a broad range of critical development efforts across Asia and the Pacific.
Lady Aegies Comment:
To be continue…………
Source : Khmer Time
04 October 2023
Japan provided over $700M to upgrade National Road 5
The Japan International Cooperation Agency (JICA) Cambodia Office joined hands with the Ministry of Public Works and Transport (MPWT) aimed at improving National Road 5 from Prek Kdam to Poi Pet City, covering a length of 366 kilometers at an estimated cost of $709.35 million. Phalla said that the project aimed to transform the road into a highway infrastructure standard, from two-lane to four-lane. In fact, this project will improve the infrastructure from the Cambodia-Thailand border all the way to the Vietnam border. The project will be completed by late November this year. According to the project contract account, the North section was estimated to cost about 156.43 million stretching from Battambang to Sri Sophorn, while the South section will be 246.36 million covering from Prek Kdam to Thlea Ma’am, and the Middle section focused on the improvement of existing road from Thlea Ma’am to Battambang and Sri Sophon to Poi Pet City is estimated to cost 306.57 million. The three sections of the project were divided into two parts of improvement which fall into the rural and urban areas.
Lady Aegies Comment:
To be continue…………
Source : Khmer Times
04 October 2023
Cambodia unveils FinTech policy 2023-28
Deputy Prime Minister and Minister of Economy and Finance Aun Pornmoniroth unveiled Cambodia’s Financial Technology (fintech) Development Policy for 2023-2028, asserting its potential to harness the advantages of digital transformation in the financial sector and invigorate the country’s socio-economic landscape. The minister stated this evolution can achieved by three primary activities: The deployment of digital systems as a cornerstone for economic growth; digital technology acting as a catalyst to bolster various economic sectors; and leveraging digital means to link local businesses and investors to international production chains to inspire innovation in product and service offerings. “I firmly believe that the effective execution of this policy will empower Cambodia to fully benefit from the digital overhaul in the financial sector. This, in turn, will pave the way for everyone involved to hasten Cambodia’s digital, economic and societal progression,” he added. Drawing an analogy to a fintech tree, he stated the policy encompasses four primary objectives: Environmental enhancement and supportive policies (symbolised by “soil”); fostering a digital foundation (depicted by “roots”); championing the adoption and evolution of auxiliary technologies (represented by “tree”); and advocating for the development and innovation of fintech operations (signified by “branches”).
Lady Aegies Comment:
To be continue…………
Source : The Phnom Penh Post
04 October 2023
U.S companies to explore investment opportunities in Cambodia
Cambodian Prime Minister Hun Manet said some U.S. companies will soon explore investment opportunities in Cambodia after his recent trip to the U.S. “During my stay in the U.S., I met different U.S companies, including Boeing, Abbott, Visa, MasterCard, Chevron, Pfizer, etc.,” he underlined. Samdech Thipadei Hun Manet said Pfizer will come to Cambodia and will work with the Ministry of Health, while a group of other U.S. companies will visit the Kingdom soon to explore the country’s investment potential. Hun Manet pointed out that he met with a total of 58 U.S companies during his trip to the U.S. in September.
Lady Aegies Comment:
To be continue…………
Source : Khmer Times
27 September 2023
Cambodia’s inflation to be stable amid El Nino, oil price concerns
The Kingdom’s inflation will remain stable in the current year as well as the next year although there are concerns about the inflationary pressures caused by El Nino, high oil price and global economic uncertainties, according to Asean+3 Macroeconomic Research Office (AMRO) Chief Economist, Hoe Ee Khor. “Cambodia’s inflation will stand at 2.8 percent in the current year and it will grow to 3 percent in the next year as per our estimates. And this is one of the most stable inflation rates in the region,” Hoe said. However, he warned that there are many concerns despite the country maintaining its inflation under stable limits. “The country has a highly dollarized economy and the use of US Dollar could bring inflationary pressures from the US economy. The impact of commodity prices on regional inflation will be sharper if the strength of the US dollar relative to the region’s currencies continues.” Hoe cited rising oil price as another major inflationary risk factor for the Kingdom as it imports oil for most of its requirements.
Lady Aegies Comment:
To be continue…………
Source : Khmer Times
05 October 2023
AMRO revise year’s growth expectations for ASEAN+3
The ASEAN+3 Macroeconomic Research Office (AMRO) has revised its economic forecast for the ASEAN+3 region, expecting a growth of 4.3 per cent this year. This is a decline from the July prediction of 4.6 per cent, largely attributed to China’s subdued growth in Q2. Cambodia’s projection stands notably higher at 5.9 per cent. AMRO anticipates the region to grow by 4.5 per cent in 2024, due to the expected effects of China’s policies to bolster domestic demand, a steady rise in durable goods consumption in the US and the predicted recovery of the global technology cycle, which should enhance regional exports amidst the global economic softness. Cambodia’s economic growth for 2023 is projected at 5.9%, trailing only Vietnam at 6.8% and the Philippines at 6.2%. The forecast for 2024 suggests a further acceleration with Cambodia at 6.7%, Vietnam at 7.1%, and the Philippines at 6.5%. Cambodia’s inflation rate is estimated at 3.3% for 2023 and 3.1% for 2024. “Cambodia is beginning to diversify into the electronics sector. However, the country must enhance its foundational attributes, especially skills and connectivity,” said Aaditya Mattoo, chief economist of the World Bank’s East Asia Pacific Region.
Lady Aegies Comment:
To be continue…………
Source : Phnom Penh Post
05 October 2023
NBC to expand cross-border payment system to 3 more countries
The National Bank of Cambodia (NBC) is working on a plan to expand its Bakong blockchain-based payment system to Singapore, China and India before the end of this year, in a bid to promote cross-border economic activities using local currencies. “There are three countries -China, Singapore, and India – in our pipeline this year. NBC expects to finalize the mediation by 2023,” Serey said in a keynote speech at the workshop on ‘Cambodia’s Financial Technology Development Policy 2023-2028’ at Hyatt Regency Phnom Penh, yesterday. The number of transactions using the Bakong payment system increased to 35.48 million worth $12.5 billion or equal to 67 percent of the country’s GDP in the first semester of this year, according to an NBC report. NBC launched the mobile payment platform known as the Bakong system in 2020 aiming to modernize the Kingdom’s payment system. It is used as a core payment system enabling interoperability between banks and financial institutions with safety, efficiency and cost-effectiveness.
Lady Aegies Comment:
To be continue…………
Source : Khmer Times
06 October 2023
Cambodia joins ‘ASEAN Connectivity’ talks
Cambodia on Wednesday joined the discussions on the Master Plan on ASEAN Connectivity (MPAC 2025), organized virtually to review the annual progress in its implementation, examine the challenges and take the next steps. The Ministry of Public Works and Transport said the workshop discussed new initiatives to promote the implementation of MPAC 2025 and prepare an ASEAN Connectivity Agenda after 2025, by proposing ways in which the regional bloc can mobilize support to promote its implementation and monitoring. “The workshop fostered an open dialogue aimed to address challenges and explore solutions to enhance coordination and drive the implementation of MPAC 2025 forward,” it said. The promotion of the free flow of goods, services, investment, and skilled labor among AMS, under the ASEAN Economic Community (AEC), could further support intra-regional trade in ASEAN, which is currently less than a third of the share of total ASEAN trade, it said.
Lady Aegies Comment:
To be continue…………
Source : Khmer Times
06 September 2023
Kingdom’s export to RCEP touches $5.2B in eight months
Cambodia’s exports to the members of the Regional Comprehensive Economic Partnership (RCEP) countries continued positive growth, reflecting the potential market for Cambodia’s products and contributing to sustainable economic growth. A report from the Ministry of Commerce showed that Cambodia exported $5,261 million worth of goods to RCEP countries in eight months of this year, an increase of 22 percent compared to $4,299 million in the same period last year. “The mega trade pact threw open a huge market for Cambodia’s products ensuring sustainable economic growth in the years to come. It is also attracting new investment to Cambodia,” said Sok Siphana, Senior Minister in Charge of International and Multilateral Trade and Economic Relations during a lecture on ‘RCEP in the Geographical and Economic Context’ on September 14. Cambodia expects to see export growth between 9.4 percent and 18 percent, which will contribute to the national economic growth between 2 percent and 3.8 percent, stated the Ministry of Commerce.
Lady Aegies Comment:
To be continue…………
Source : Khmer Times
