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

Mar 04, 2024

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Headlines:

End of an Era: Phnom Penh Post to Cease Print Publication

Emirates Returns, Direct India Flights Approved

Real Estate on the Rise

Banking Sees Mixed Fortunes and Collaborations

Sihanoukville Port Drives Growth

Cambodia-UAE Commercial Center Opens

Cambodia Bags Cultural Destination Award

Halal Food Market Expansion with Maybank

MOH Ramps Up Efforts to Combat Dengue

Vietnam Sinks $3.7B Into Development Triangle

Labor Ministry Digitizes Services

Shift Towards Family Dynasty Raises Concerns

Japan Relations Solid Despite Global Tensions

China's EV Expansion into Southeast Asia

Huge Revenue from License Plates

End of an Era: Phnom Penh Post to Cease Print Publication

The Phnom Penh Post, Cambodia's landmark newspaper since 1992, will discontinue its print edition due to financial strains exacerbated by the pandemic and the digital shift in news consumption. A decline in print sales and advertising revenue has been critical, with daily sales dropping to precipitous levels. While the announcement didn't specify the continuation of an online edition, rumors on social media indicate that the online edition will remain for now.

Read more: AP News (Financial Struggles), Cambodianess (Impact on Local Sellers)

Emirates Returns, Direct India Flights Approved

Emirates has announced a fifth freedom flight from Dubai to Phnom Penh via Singapore, starting May 2024. Separately, direct flights between Cambodia and India (Phnom Penh-New Delhi and New Delhi-Siem Reap) are set to begin in the next two months.

Read more: AirlineGeeks (Emirates), Airways Magazine (Emirates), Cambodianess (Cambodia-India Direct)

Real Estate on the Rise

Prices in the commercial real estate market have stabilized prices across the nation. Phnom Penh remains a magnet for investment, particularly in the commercial and high-end residential segments. The country's economic growth, driven by urbanization and demographic trends, supports a positive long-term outlook for real estate, expected to expand annually by 1.56% from 2024 to 2028. Despite oversupply and decreased investment capital in recent years, the market is seeing signs of recovery with increased investment and development activities, promising opportunities for future growth.

Banking Sees Mixed Fortunes and Collaborations

Banking is seeing a shakeup with the official launch of KB PRASAC Bank, a merger that is expected to increase financial inclusion and service diversity. Meanwhile, ACLEDA Bank reports a 20% decline in net profit in 2023, due primarily to a challenging rise in NPL rates. In a spot of good news, Malaysia and Cambodia have signed a MoU to boost payments capabilities, promising improved cross-border QR payments. The agreement comes as the two nations have come to a February 27 agreement to rekindle their friendship for growth.

Read more: Phnom Penh Post (KB PRASAC), Cambodia Investment Review (ACLEDA), IBS Intelligence (Malaysia Payments), The Star (Malaysia Trade)

Sihanoukville Port Drives Growth

In 2023, Cambodia's Sihanoukville Autonomous Port reported a 6.35% increase in container volume, handling nearly 798,000 TEUs, alongside a 12.7% rise in cargo tonnage. These numbers are a significant contribution to Cambodia's economy, accounting for about 60% of the country's cargo traffic. Along with the increased traffic, the port's net profit grew by 45% to $30.5 million. Phnom Penh Autonomous Port, on the other hand, experienced a 5% decrease in container throughput and a reduction in net profit.

Cambodia-UAE Commercial Center Opens

The inauguration of the Cambodia-UAE Commercial Center in Abu Dhabi, coming as a result of a Comprehensive Economic Partnership Agreement, will promote bilateral trade and investment, showcasing Cambodia’s products and culture. It will serve as a platform for Cambodian products entering the UAE market (particularly green and organic products). The center is expected to increase interest in Southeast Asia through the Arab world.

Cambodia Bags Cultural Destination Award

Cambodia has been recognized as Asia's leading cultural destination for 2023 by the World Travel Awards. This accolade is due to Cambodia's appeal to cultural tourists, supported by its heritage sites, including Angkor Archaeological Park and three other world heritage sites. The tourism sector, a key economic pillar, created 450,000 jobs and welcomed 5.45 million international visitors in 2023, generating $3.08 billion in revenue and contributing 7.5% to GDP.

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