Cambodia 20241202: Speckled, Symmetrical, Contrite
Mekong Memo Cambodia Weekly: Business, politics, finance, trade & legal news.
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Headlines:
Preparing for Trade Under Trump’s Return
Infrastructure Push Accelerates
Aviation Sector Sees New Routes, Infrastructure
China Ties Deepen in Wake of Hun Sen Visit
Budget Boost, Tax Breaks for the Year Ahead
Financial Hub Dreams
Digital Transformation Continues
HIV/AIDS Progress Report
Forced Criminality in SEA Scam Operations
Life Insurance Policy Issuance Surges
Diplomatic Strength via International Engagements
Tourism as a Force for Good
Music Co. Apologizes to Indigenous Community
Preparing for Trade Under Trump’s Return
The return of Donald Trump’s protectionist policies as U.S. president is going to mean challenges for Cambodia's trade and economic ties. Expected tariffs on foreign goods may impact Cambodia's export-driven economy, valued at $8.2 billion in U.S. trade for 2024. The government is trying to leverage its integration into the Regional Comprehensive Economic Partnership (RCEP) and free trade agreements to pull in foreign investments, particularly from Chinese firms looking for alternatives to U.S.-China trade tensions. Experts are calling on Cambodia to strengthen economic partnerships and capitalize on regional trade opportunities.
Read more: Cambodia Investment Review (Trade Future), Khmer Times (Preparing for Trade Barriers)
Infrastructure Push Accelerates
PM Hun Manet has announced plans for a new city (in an undisclosed location!) featuring distinct commercial, residential, and recreational zones. The master plan is said to prioritize wide roads, public transport, parks, and green spaces. The Funan Techo Canal is still moving forward with Chinese backing, despite reports of funding delays. Construction at Ream Naval Base is almost done, with China developing the site since 2019 under a 30-year agreement. The base's new 1,200-foot pier has hosted Chinese warships throughout the year, causing consternation in some quarters.
Read more: Khmer Times (New City), Asian News Network (Canal), Yahoo News (Ream Naval Base)
Aviation Sector Sees New Routes, Infrastructure
Cambodia has added six new direct air routes to Thailand, Vietnam, China, and Singapore. Air travel has risen 22% from 2023, with projections showing a 67% lift over pre-pandemic levels. Siem Reap Angkor International Airport has reported 1.3 million passengers in this year's first 11 months, and is expecting 2 million in 2025. The signing of Protocol 5 on 'Own Stopover Rights' will grant ASEAN airlines expanded regional flight freedoms. Airport infrastructure continues building out with several facilities currently under construction.
Read more: Travel Daily Media (New Routes), Khmer Times (Airport Growth)
China Ties Deepen in Wake of Hun Sen Visit
Senate President Hun Sen's recent China visit was in support of finding new partnerships and advancing shared development goals. China reaffirmed support for major infrastructure projects and designated 2025 as 'Cambodia-China Tourism Year.' The tourism ministry has also secured cooperation agreements with China's Guangxi region to grow bilateral tourism. Both nations committed to implementing projects including the Fish and Rice Corridor, Industrial Development Corridor, and Mixed Energy Project.
Read more: Khmer Times (China Visit), Khmer Times (Tourism Push)
Budget Boost, Tax Breaks for the Year Ahead
The national assembly has given approval to a $9.3 billion government budget for 2025, a figure that represents nearly a fifth (18.14%) of national GDP. The legislation supports reforms across the board to help Cambodia reach high-middle-income status. Property transfer tax exemptions have been extended through 2025 for residential properties under $70,000, with first-time buyer benefits for properties up to $210,000.
Read more: Cambodia Daily (Budget), The Star (Tax Exemptions)
Financial Hub Dreams
Cambodia Securities PLC reports, perhaps optimistically, that the Kingdom has potential to become Southeast Asia's next financial hub. The assessment cites strong economic growth, political stability, no foreign exchange controls, improving infrastructure, and increasing FDI as reasons for bullishness. Trade volumes rose to nearly $41 billion from January to September, with World Bank projections suggesting $100 billion annually by 2030.
Read more: Khmer Times (Financial Hub), The Nation Thailand (Trade Growth)
Digital Transformation Continues
The Ministry of Posts and Telecommunications launched a new app called Translate-KH, an AI-powered platform for translating between Khmer and English. The platform offers text, speech, and image translation capabilities on local servers. The ministry has also converted its telecoms institute into the Cambodia Academy of Digital Technology, focusing on digital talent. The Digital Skill Development Roadmap 2024-2035 is being touted as the guide for local AI integration efforts.
Read more: Khmer Times (Translation App), Khmer Times (AI Development)
HIV/AIDS Progress Report
Prime Minister Hun Manet has announced 98% coverage of antiretroviral therapy, the highest rate to be found throughout Asia-Pacific. New HIV/AIDS cases have been declining for the past few years. The government wants to find as many as 7,000 untreated carriers and make sure everyone is keeping up with treatment adherence.
Read more: Khmer Times
Forced Criminality in SEA Scam Operations
Southeast Asia's scam syndicates reportedly exploit more than 350,000 people, many trafficked and abused, to conduct cyber-enabled fraud, particularly in regions like Sihanoukville. Victims face challenges being recognized as such by governments, complicating efforts for rehabilitation. The syndicates leverage trafficking networks, coercion, and systemic abuse to sustain operations. The debate over victimhood is being questioned in light of international accountability and responses to address this and growing regional issue.
Read more: The Diplomat
Life Insurance Policy Issuance Surges
Cambodia’s insurance sector has seen remarkable growth, with life insurance policies more than doubling year-on-year to 160,626 in September, driven by a 6.14% increase in gross premiums to $15.8 million. the industry has collected $25 million in gross premiums for October, a slight drop from September's $28.5 million. General insurance premiums grew modestly by 0.8% to $9.2 million, with policies rising 12.6% to 30,289.
Read more: Insurance Asia
Diplomatic Strength via International Engagements
In late November, Cambodia hosted global events including the ICAPP General Assembly and Siem Reap-Angkor Summit on a Mine-Free World. Leaders and dignitaries praised Cambodia's contributions to peacebuilding, transitional justice, and mine clearance, and have been inspired by its history of resilience. Cambodia has taken advantage of these platforms to promote sovereignty, coexistence, and moderate politics, asserting itself as a proactive global actor that is above superpower rivalries.
Read more: Khmer Times
Tourism as a Force for Good
This travelogue reports that tourism in Cambodia is a force for good as visitors are able to contribute to initiatives that empower marginalized groups, including those that aid women transitioning out of exploitation, support arts and cultural preservation. Organizations like APOPO clear landmines using trained rodents, improving safety while providing educational visitor experiences. Markets like "Made in Cambodia" support local artisans directly.
Read more: Travel + Leisure Asia
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.
A recent song apparently ruffled some feathers, but moves are being made to smooth things over. It is not clear from reading the media what the nature of the offense was\:
Music Co. Apologizes to Indigenous Community
Baramey Productions, home to Cambodian rapper VannDa among others, apologized for offending the Bunong indigenous community with lyrics in YuuHai and GMENGz’s song “Again & Again.” The company issued a statement acknowledging the harm, removed the song, and pledged to release a revised version. The controversy arose after Tev Pot highlighted the offensive content on Facebook, prompting Baramey to take responsibility. Tev Pot praised their apology as a step toward greater cultural awareness. The Bunong are Cambodia’s largest indigenous highland ethnic group, primarily living in Mondulkiri province.
Read more: Khmer Times
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