WEEKLY ECONOMIC UPDATED
Updated: 23 Nov-29 Nov,2019

TRADE & COMMERCE | Mango Exports To South Korea Given Greenlight

After long negotiations on export requirements, the first shipment of local mangoes will reach South Korean before the end of the year, according to a high-ranking Korean official. Kim Hyeon-soo, the newly-appointed Agriculture Minister of South Korea, said the first consignment of Cambodian mangoes will reach Korean shores next month, noting that the Korean government approved imports of the product on Oct 29. Mr Kim revealed the information during a meeting on Monday with his Cambodian counterpart, Minister Veng Sakhon. The meeting between the ministers was held on the sidelines of the Asean summit in the Korean city of Busan. During the summit, Cambodia and Korea also signed an agreement on agricultural cooperation.(Nov 28, 2019 | Khmer Times)

TRADE & COMMERCE | Experts Address Urbanisation Planning

Cambodia should prioritise managed urban development to maximise economic growth and cope with the increase in population, industry insiders said yesterday. Local and foreign experts and government officials gathered yesterday at Sofitel Phnom Penh Phokeethra to discuss urban development in the Kingdom in a forum that sought to find solutions to the challenges that come with the country’s rapid population increase. “We gather here together today because we share a common aspiration – to help identify key urban priorities towards a Cambodian vision of smart, sustainable and inclusive urban development,” she said. Ms Tamesis pointed out that Cambodia has one of the fastest rates of urbanisation in Southeast Asia. (Nov 28, 2019 | Khmer Times)

TRADE & COMMERCE | Rice Exports To China Still Under Last Year’s Quota: CRF

China has not yet purchased milled rice from Cambodia for the period 2019-2020, with the country still trying to fulfill its quota for the year 2018. Kao Thach, CEO of Rural Development Bank (RDB), told Khmer Times that Cofco – China’s largest food processor, manufacturer and trader – has not placed any orders yet for Cambodian milled rice for the year 2019. The quota for 2019 is 400,000 tonnes. “We don’t know whether they will purchase our rice or not. It seems like they don’t want to buy, so we are pushing,” he said. Mr Thach noted that some local rice exporters are shipping rice to China based on the quota for 2018 – 300,000 tonnes. “We are afraid that when the quota for 2018 is complete, we won’t receive new orders. It is difficult to sell,” Mr Thach said. (Nov 27, 2019 | Khmer Times)

TOURISM | Gov’t Creates Tourism Development Committee

The National Tourism Development Committee was created this month to boost the development of one of Cambodia’s most important economic drivers. A sub-decree on the creation of the committee was signed by Prime Minister Hun Sen on Nov 22, according to a statement issued yesterday by the Ministry of Tourism. The new body will be chaired by one of the country’s deputy prime ministers. Tourism Minister Thong Khon will be the permanent vice-chairman. There are four other vice-chairmen: Minister of Public Works and Transport Sun Chanthol, Minister of Industry and Handicrafts Cham Prasidh, Minister of Culture and Fine Arts Phoeurng Sackona, and Minister of Environment Say Sam Al. The remaining members are secretaries of states and other high-ranking officials. There are a total of 34 members. The committee is tasked with drafting strategies and policies to regulate the sector as well as to conduct research that can aid the industry to develop sustainably. ( Nov 29, 2019/ Khmer Times)

TOURISM | Mony Park Packs In Tourists For Its Food And Beauty

Not far from Krong Kampong Cham, Mony Park is a tourist destination that invites all visitors to enjoy eating local fare. It’s an opportunity not to be missed, and besides, the place offers great opportunities to take pictures at its beautiful flower garden and fish pond. As the biggest flower garden in Kampong Cham province, Mony Park has been operating for more than five years. Its huge and lush greenery garden is a sight to behold, with dinosaurs built from flowers, a swing and ox cart adding to picture possibilities. But having a variety of flowers is not the only reason visitors flock there. The park has a rich variety of trees that have been planted. They include the banyan, palm tree, betel palm, and others that offer shade during the hot season. The park attracts some 300 visitors daily, with around 100 huts available to serve tourists including family hut, couple hut, event hut, and a hut where one can sit to enjoy the fish pond.(Nov 28, 2019/Phnom Penh Post)

FINANCE AND BANKING | Baker Tilly Briefs MBCC Members On Tax Updates

Audit and advisory firm Baker Tilly Cambodia yesterday held a briefing session with the Malaysian Business Chamber of Cambodia to inform members of recent tax updates. The event, held in Phnom Penh’s Sunway Hotel, was led by Baker Tilly Managing Partner Tan Khee Meng. Mr Khee Meng discussed the double-tax avoidance (DTA) agreement recently signed by Cambodia and Malaysia. The DTA was signed during Malaysian Prime Minister Tun Mahathir’s visit to Cambodia in September. “Cambodia’s withholding tax rates for Malaysia tax residents on dividends, interest, royalties and fees for technical services will be reduced from the current level of 14 percent to 10 percent,” said Mr Khee Meng. (Nov 28, 2019/Khmer Times)

FINANCE AND BANKING | Continuing Canadia Bank’s Grand Legacy

As one of the leading banks in the Kingdom, Canadia Bank Plc. is helmed by a talented man whose portfolio in the banking and finance sector has been vast and illustrious – Mr. Raymond Sia. The Malaysian-born has been exposed to corporate banking, small and medium enterprises banking, treasury and business model transformation for over 25 years, prior to assuming the role of Canadia Bank’s Chief Executive Officer in 2018. In spite of his impressive feats, Mr. Sia said Canadia Bank remains the single most exciting project that he has undertaken. “After working in Vietnam for the past 7 years, I was keen to explore a new market in the growing and dynamic Indochina region.  When I learned that this was a multi-billion dollar sized bank with a strong aspiration to be the market leader in Cambodia, I had to say yes. (Nov 25, 2019/Khmer Times)

REAL ESTATE AND CONSTRUCTION| Contractor Competition Kicks Off

The National Contractor Competition kicked off yesterday aiming to build the skills of Cambodian construction professionals. Organised by SCG Cambodia, a subsidiary of the Siam Cement Group, the two-day event is a collaboration with the Ministry of Labour and Vocational Training. The competition is part of SCG’s Contractor Academy Programme. Forty contractors, selected from among over 200 contractors who took part in the provincial rounds of the competition, are participating in the contest, competing in categories like cement plastering, roofing, and smartboard and smartwood installation. Speaking at the opening ceremony, Lao Him, undersecretary of state at the Ministry of Labour and Vocational Training, said developing technical and vocational education in the country requires the support of the private sector. (Nov 28, 2019| Khmer Times)

REAL ESTATE AND CONSTRUCTION| National Road 3 Development Driving Up Land Prices

When An Chanthla heard rumors in late 2017 that the government is planning on expanding National Road 3, a 202 km-long major highway connecting the south of Cambodia to Phnom Penh – he saw an opportunity he simply couldn’t pass on. With little capital and even less experience in real estate investments, Chanthla decided to take a chance and pooled his capital in a joint-venture with his friends. They managed to put together $14,000 to buy a 2,500 sqm plot of land around National Road 3 in Prey Toteung Village. The land they bought was surrounded by rice fields and was only accessible through a narrow dirt road. As the sale price was a mere $5.6 per sqm, Chanthla hoped that the land would double in value in 2 or 3 years. But fortune came sooner than he had anticipated. A few months after the purchase, the government officially announced plans to renovate and expand National Road 3. Land prices around the major road skyrocketed overnight, including Chanthla’s 2,500 sqm plot of land. (Nov 27, 2019| Khmer Times)

CAMBODIA  Selected  Indicators

2013

2014

2015

2016f

2017f

2018f

 

Real GDP growth, at constant market prices

7.4

7.1

7.0

7.0

6.9

6.9

 

Private  Consumption

5.8

4.5

5.9

2.4

2.3

2.2

 

Government   Consumption

5.2

2.4

4.4

3.8

10.3

14.5

 

Gross Fixed Capital Investment

15.3

9.1

10.6

8.1

9.7

16.8

 

Exports, Goods and Services

14.0

11.3

7.2

9.5

8.1

8.3

 

Imports, Goods and Services

15.1

10.1

6.5

5.9

5.8

7.9

 

Real GDP growth, at constant factor prices

7.4

6.9

6.9

6.9

6.9

6.9

 

Agriculture

1.6

0.3

0.2

0.4

0.3

0.7

 

Industry

11.0

9.8

11.7

11.4

9.0

7.7

 

Services

8.7

8.7

7.1

6.8

8.5

9.1

 

Inflation (Consumer Price Index)

2.2

1.7

1.3

3.2

3.4

3.5

 

Current Account Balance (% of GDP)

-9.5

-9.0

-8.5

-8.4

-8.5

-8.7

 

Financial and Capital Account (% of GDP)

15.2

14.6

14.1

13.4

12.0

10.8

 

Net Foreign Direct Investment (% of GDP)

11.8

10.0

9.1

8.5

8.2

7.0

 

Fiscal Balance (% of GDP)

-6.5

-3.8

-2.0

-2.9

-4.9

-4.9

 

Debt (% of GDP)

31.6

31.8

32.1

32.6

33.3

34.0

 

Primary Balance (% of GDP)

-5.8

-3.1

-1.7

-2.5

-4.6

-4.6

 

Sources: World Bank, Macroeconomics and Fiscal Management Global Practice, and Poverty Global Practice.

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The report is produced based on material compiled from data considered to be reliable at the time of writing. Information and opinions expressed, however, will be subjected to adjusted at short notice. We do not accept any liability directly or indirectly that may arise from investment decision-making based on this report while we tend share as your information only.

 

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