Cambodia 20240826: Pellucid, Ethereal, Primeval

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

Aug 26, 2024

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Headlines:

Hard Press for Foreign Investment

Hun Manet: Power and Economic Prospects

Path to Prosperity Via Freedom and Reform

Calls for Reports on Kratom Amid Drug Concerns

Tourism Growth: Tax Breaks and Hotel Expansions

Ag Reforms Yield Positive Results for Farmers

Insurance Sector Grows by 8%

PPAP Revenue Rises, Profit Declines

Free Tours to Dispel Border Sovereignty Concerns

International Ties: RU, UY, ID, TH

Loan Terms Eased SME as Debt Challenges Rise

Mekong Nations Boost Co-op on Regional Issues

Royal Group to Launch Business Charter Service

Monkey Menace Hotline and Relocation Plan

Hard Press for Foreign Investment

Cambodia is aggressively chasing foreign investment for economic growth. The government is specifically courting investors from Singapore and China, touting opportunities in clean energy, agriculture, and manufacturing. Recent data shows growth in approved projects, with 237 new ventures worth more than $6 billion in the first 11 months under the new administration. Trade volumes are also rising, with exports growing 12% to $25 billion. The country's location, improving infrastructure, and special economic zones are reportedly attracting a diverse cast of international investors. The domestic economy is projected to grow 6% in 2024, mostly thanks to exports, agriculture, and tourism.

Read more: Phnom Penh Post (Singapore Investment), Fibre2Fashion (China Investment), Khmer Times (Growth), The Star (Trade Volumes)

Hun Manet: Power and Economic Prospects

As Cambodia marks a year since Hun Manet assumed the role of PM, debates are still hot over his leadership's legitimacy and independence. While critics argue that Hun Sen continues to hold significant (some would say inappropriate) influence, defenders of the status quo would rather focus on the peaceful transfer of power and recent reforms that have improved Cambodia's governance. The country’s economic future remains a focal point, with concerns about challenges ahead balanced by recognition of its recent socio-economic achievements and strategic foreign policy efforts.

Read more: Nikkei Asia (Power Dynamics), Khmer Times (Rebuttal), Khmer Times (Achievements)

Path to Prosperity Via Freedom and Reform

An economist argues that Cambodia can achieve long-term prosperity by increasing economic freedom and reforms. Recommendations include reducing regulatory barriers, allowing a more competitive business environment, and encouraging more innovation. Duch Darin, a Cambodian-born academic, recently talked about the need for Cambodia to align its policies with global standards to continue pulling in foreign investment for growth. Sectors like technology, agriculture, and manufacturing are especially mentioned as areas for reform to drive economic diversification.

Calls for Reports on Kratom Amid Drug Concerns

The Cambodian National Authority for Combating Drugs (NACD) has requested detailed reports from all provinces on the cultivation of kratom, a plant they say can be used to produce narcotics. The request follows the “discovery” of kratom production in Banteay Meanchey province. The NACD says it intends to collect data to inform policy decisions on regulating kratom, which is currently unregulated in Cambodia. Provincial authorities have been tasked with identifying and reporting kratom cultivation to support the development of appropriate legal measures.

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