Cambodia 20240624: Panoramic, Substantive, Multilayered

Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.

News from Southeast Asia directly to your inbox every weekday.

---

The Mekong Memo is proudly presented by:

Horton International offers reliable, effective solutions to recruiting and resourcing challenges for a diverse range of organizations, from small, privately held start-ups to leading Global corporations. With offices and experience throughout Southeast Asia, Horton International is your first choice for executive search in the region. Click the logo to learn more.

---

The Memo is published weekdays - Cambodia (every Monday), Myanmar (Tuesday), Laos (Wednesday), Vietnam (Thursday) and Thailand (Friday). The Thailand edition is free in its entirety; the others usually abbreviated for non-paid subscribers.

Please go to https://www.mekongmemo.com/account to select country editions you would like to receive without affecting your overall subscription status.

Headlines:

Phnom Penh Climbs Cost-of-Living Rankings

Cambodia Eyes Economic Upgrade

FDI Surge Reshapes Investment Landscape

Economy Grows Across the Board

Decline in Development Aid Raises Concerns

Considerations for Buying Property in Cambodia

Tourism Rebounds with New Tactics and Routes

EU Policy Shift Pushes Cambodia Closer to China

US-China Rivalry Intensifies Over Cambodia

SMEs Struggle Despite Broad Economic Growth

Global Partnerships: AU, TH, SG, CN, DE, ID, VN, KR

Digital Payments Advance

Power Outages Hinder Business Growth

SEA’s Black Market Arms Often from Military Stockpiles

Hannes Schmid Launches ‘The Gong’

---

Phnom Penh Climbs Cost-of-Living Rankings

Phnom Penh has been ranked as the 2nd most expensive city to live in Southeast Asia according to Mercer’s Cost of Living City Ranking 2024. The survey looked at 226 cities worldwide, weighing costs of housing, transportation, food, clothing, household goods, and entertainment. Phnom Penh stands at 123rd globally, a big jump in living expenses. Hong Kong tops the global list, while Singapore, unsurprisingly, ranks tops in Southeast Asia.

Read more: Khmer Times

Cambodia Eyes Economic Upgrade

Cambodia is set to shed its Least Developed Country (LDC) status by 2029, targeting an upper-middle-income economy by 2030 and a high-income nation by 2050. This transition is only possible thanks to two decades of economic growth, with GDP growth of 6.6% expected this year.

Read more: Khmer Times

FDI Surge Reshapes Investment Landscape

Foreign Direct Investment (FDI) in Cambodia is booming, with Singapore leading new ventures in green energy, healthcare, and agri-food. Despite overall rising FDI, US investments in Cambodia remain minimal, mostly due to geopolitical tensions with China. The National Bank of Cambodia reported $48.4 billion in FDI inflows between 2018 and 2023, mostly from China, South Korea, and Singapore, and primarily targeting manufacturing and finance.

Read more: Straits Times (Growth), Khmer Times (US FDI), Khmer Times (Singaporean Investment), Khmer Times (FDI Inflows)

---

---

Economy Grows Across the Board

Prime Minister Hun Manet expects the economy will grow by 6% in 2024, up from 5% in 2023, with all sectors showing recovery. Speaking at the groundbreaking ceremony for new infrastructure, he talked about the effectiveness of the government's policies in attracting foreign investment and improving trade and tax laws. Experts, including Dr. Chey Tech, support this optimistic outlook, saying that a lot of work has been done already, but continued reforms will be necessary for Cambodia to achieve income goals.

Read more: The Star