Cambodia 20241014: Rococo, Trendsetting, Galvanizing
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Headlines:
Leadership Transition Keeps Father in Power
War of Words Over Claims of US Interference
Hun Manet Explains CLV-DTA Withdrawal
Canada to Open New Embassy in Phnom Penh
US and China Lock Horns Over Military Basing
Energy Cooperation with Thailand Resurrected
Trade Rises in Q3 on Strong China Growth
International Relations: TH, VN, LA, NZ, LU, DE
Mounting Alcohol Crisis as Industry Thrives
Real Estate Market Remains Slow in Early 2024
Internet Subscriptions Rise to 20 Million
Crackdown on Illegal Surrogacy Involving Filipinas
International Pageant to International Incident
Leadership Transition Keeps Father in Power
Hun Manet has taken over Cambodia’s leadership from his father, Hun Sen, serving more than a year in office. Despite his son’s title as prime minister, Hun Sen appears to continue to wield substantial influence over major decisions, seemingly keeping control over Cambodia's political landscape. Manet’s leadership style is seen as more technocratic and less confrontational, but repression of opposition and critics remains strong. A delicate topic worth keeping an eye on.
Read more: Malay Mail (Power Dynamics), Sydney Morning Herald (Claims of Repression)
War of Words Over Claims of US Interference
Cambodia has accused the United States of fueling Vietnam’s opposition to the controversial Funan Techo Canal project. The canal, which will have some (undefined) impact on Vietnam's Mekong Delta, has drawn concern from Vietnam over its ecological and economic effects. Cambodian officials claim that these objections are part of a US-led effort to undermine Chinese influence in the region. Critics argue that Vietnam’s concerns are legitimate and not driven by foreign interference. Please read both articles, as they are two sides of the same coin.
Read more: Khmer Times (RFA Controversy), Eurasia Review (Canal Concerns)
Hun Manet Explains CLV-DTA Withdrawal
The Prime Minister has formally explained to the leaders of Laos and Vietnam the rationale behind Cambodia's withdrawal from the CLV-DTA (Cambodia-Laos-Vietnam Development Triangle Area). The decision, made in response to internal concerns over extremist manipulation and the desire to prevent potential national security risks, is a surprising reassessment of Cambodia'n involvement in regional agreements. Despite this, the prime minister was at pains to confirm ongoing collaboration in other bilateral and multilateral frameworks.
Read more: Khmer Times
Canada to Open New Embassy in Phnom Penh
Cambodia and Canada have renewed their diplomatic relationship with mutual commitments to open embassies in each other’s capitals in an effort to improve economic cooperation. The two countries also inked a new MoU to promote joint ventures in agriculture, renewable energy, and technology. Canadian investments in Cambodia are expected to grow as the two countries explore new economic and diplomatic partnerships. These developments are an indication of both Cambodia’s growing appeal as a destination for international business, but also the importance of Southeast Asia to Canada’s Indo-Pacific strategy.
Read more: Khmer Times (Embassies), Khmer Times (Trade), Construction Property (MoU)
US and China Lock Horns Over Military Basing
China's growing military presence at Cambodia's Ream Naval Base is still a burr under the US saddle thanks to suspicions that the base could unduly support Chinese influence in the South China Sea. Cambodia denies any exclusive Chinese access, but recent satellite imagery and naval activity have brought those denials into doubt. Meanwhile, the US is ratcheting up its military presence in the Philippines with the deployment of the Typhon missile system, adding further strain to an already fraught Southeast Asian geopolitical environment.
Read more: Asia Times
Energy Cooperation with Thailand Resurrected
Thailand and Cambodia have renewed talks on the joint exploration and development of a resource-rich offshore oil and gas field in the Gulf of Thailand. The area holds an estimated $300 billion in reserves. After years of stalled negotiations, recent changes in leadership in both countries, along with historical ties, have raised optimism for progress. The agreement could boost energy security and cut utility costs for both nations.
Read more: Asia News Network
Trade Rises in Q3 on Strong China Growth
Exports reached nearly $20 billion in Q3 2024, a 17% year-on-year growth. Bilateral trade with China also hit $11.14 billion, a 22.5% lift, supported by free trade agreements and the RCEP. Main exports include garments, agriculture, and electronics. With favorable economic partnerships, Cambodia is expected to outperform regional growth projections, reaching 5.5% in 2024.
Read more: Khmer Times (Q3 Exports), Xinhua (China Trade Growth), AKP (Performance), Khmer Times(China), Cambodia Investment Review (Growth Expectations)
International Relations: TH, VN, LA, NZ, LU, DE
Prime Minister Hun Manet has engaged in high-level meetings with counterparts from Thailand, Vietnam, Laos, New Zealand, Luxembourg, and Germany focusing on the usual issues of expanding cooperation in trade, tourism, education, and security. These discussions are intended to upgrade existing partnerships, improve bilateral mechanisms, and explore new areas of collaboration. For more detailed information specifics with each country, please refer to the full articles.
Read more: Khmer Times (Thailand), Khmer Times (Vietnam), Khmer Times (Laos), Khmer Times (New Zealand), Khmer Times (Luxembourg), Khmer Times (Germany)
Mounting Alcohol Crisis as Industry Thrives
The alcohol industry is growing rapidly, contributing to national economic growth, but this expansion is having serious societal repercussions. Alcohol consumption in Cambodia ranks among the highest in ASEAN, and is a big factor leading to more than 1,000 traffic fatalities each year. Government measures currently include strict advertising regulations and public education initiatives, but issues like drug use and sexual exploitation linked to irresponsible drinking remain significant. The government says it plans stricter law enforcement to try and reduce these harms, but it is unclear what impact this will have on the issue.
Read more: Asia News Network
Real Estate Market Remains Slow in Early 2024
The real estate market saw minimal activity in the first nine months of 2024, with a continuing downturn from previous years. Industry experts attribute the slow recovery to high interest rates, economic uncertainty, and a decline in foreign investments. While some regions saw minor growth in residential and commercial properties, overall demand remains lackluster. Developers and investors are taking a cautious approach, waiting for signs of economic stability before committing to new projects.
Read more: The Star
Internet Subscriptions Rise to 20 Million
Cambodia now has 20 million internet subscribers, an increase from 16.6 million in 2020, as reported by the Telecommunication Regulator of Cambodia. Mobile internet users have grown to 21.9 million, driven by improved digital awareness and infrastructure. The government's "Digital Economy and Social Policy Framework of Cambodia 2021-2035" supports expanding mobile infrastructure and high-speed internet, aiming to introduce 5G services and enhance connectivity via undersea fibre-optic cables. Cambodia currently has an estimated population of just under 18 million.
Read more: The Star
Crackdown on Illegal Surrogacy Involving Filipinas
Thirteen Filipino women face prison sentences in Cambodia for their involvement in illegal surrogacy operations. Cambodian authorities arrested the women, charging them with human trafficking and sexual exploitation. The surrogacy scheme arose after Cambodia became a hub for surrogacy services, offering lower costs than other countries. The Philippine embassy is coordinating with Cambodian officials to repatriate the seven non-pregnant women, while the 13 pregnant women will undergo legal proceedings before repatriation.
Read more: Khmer Times (Crackdown), GMA News (Philippine Embassy Response)
And now for something completely different.
While the focus of The Memo is on news for business, we often wrap with a less business-focused article.
International Pageant to International Incident
A huge controversy around the performance of the Cambodian company running a Miss Grand International (MGI) pageant has inflamed emotions in both Cambodia and Thailand. The Cambodian Delegation Minister has called for the end to the controversy, asking for calm and requesting avoidance of an escalation into an international issue. Both Cambodian and Thai journalists have united, calling for responsible media coverage. The drama around the event has renewed debates over national pride and caused netizens on both sides of the border to jump to conclusions, but efforts are focused on resolving the issue peacefully and maintaining good relations between the two neighboring countries.
Read more: Bangkok Post (Pageantry Tensions), Khmer Times (Minister's Call), Khmer Times (Journalist Statement)
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