Cambodia Update: Cambodia Moves Ahead to Dissolve Opposition Party

Cambodia Update | October 27, 2017
Authors: Jack Myint and Natalie McDaniel
 
LOOKING AHEAD
 
 

November 30-December 1: 2017 Business Mission to the 17th ASEAN Telecommunications and Information Technology Ministers Meeting. We are now registering senior level executives for our Business Mission to the 17th ASEAN Telecommunications and Information Technology Ministers Meeting (TELMIN) in Siem Reap. The Council is proposing to have a one hour presentation and dialogue with the ministers, as well as presentations from select member companies. Please contact Mario Masaya at mmasaya@usasean.org for more information and click here to register. 

 
THE COUNCIL'S TAKE
 
 

Cambodia Moves Ahead to Dissolve Opposition Party

The Cambodian government shows no sign of relaxing its stance against political dissent since the Cambodian Appeals Court rejected Kem Sokha’s, leader of the Cambodian National Rescue Party (CNRP), request for bail on September 26. On October 2, Prime Minister Hun Sen announced plans for arrests of opposition leaders that he claimed were behind a plot to overthrow the government. The next day on October 3, Mu Sochua, Vice President of the CNRP, fled Cambodia after being informed of her impending arrest by a senior government official. Approximately one-half to two-thirds of CNRP leaders have fled the country since Kem Sokha’s arrest in early September.

On October 6 the Interior Ministry filed complaints to the Supreme Court requesting that the CNRP be dissolved ahead of the 2018 elections. The Ministry’s request is based on complaints filed by the Cambodian Youth Party and the royalist party Funcinpec. On October 12 Prime Minister Hun Sen stated that, when the CNRP is dissolved, its seats will be redistributed to five minor parties. 75% of the seats available would be given to Funcinpec, which had captured 3.6% of the votes in the 2013 national election. On October 16 the National Assembly passed amendments to Cambodia’s Election Law that will officially dissolve the CNRP upon ratification. King Norodom Sihamoni signed off on the amendments on October 25, officially approving provisions to redistribute the CNRP’s seats in event of its dissolution. The ruling CPP will also be permitted to occupy the opposition’s local-level positions.

The United States has shown concern for the political proceedings in Cambodia. On October 3 U.S. Senators John McCain and Dick Durbin introduced a resolution reaffirming the United States’ commitment to promoting democracy, human rights, and rule of law in Cambodia. To access the full text of the resolution, please click here. The U.S. State Department has also responded to the October 16 amendments with “deep concern” and a renewed call to release Kem Sokha from prison. Member companies should be advised that anti-U.S./anti-Western sentiment in Cambodia continues to grow. While the Cambodian government is still interested in promoting trade, investment, and technological innovation, government advocacy will likely remain more difficult than usual until after the July 2018 elections or beyond.

Cambodia Requests GSP Review for Footwear

On October 17, the Garment Manufacturers Associate of Cambodia (GMAC) submitted a petition to the United States to request preferential trade treatment for Cambodian footwear exports under the U.S. Generalized System of Preference (GSP).  This follows the August 24 request announced at the meeting between Cambodia’s Secretary of State of the Ministry of Commerce Ok Boung and Marta Prado, Director for Southeast Asian and the Pacific at the Office of the United States Trade Representative (USTR). Currently, about 80% of Cambodia’s $2.8 billion exports to the United States are textiles and footwear, which have been exported to the United States under its most-favored nation program. Footwear was likely singled out for GSP review because of the recent growth in the American footwear market. However, most footwear is prohibited by U.S. law (19 USC 2463) from receiving GSP treatment. Cambodia presently receives DFQF status for 82.7% of its products, such as vehicles, machinery, animal feed, fur, and non-woven textiles. In July 2016, the U.S. government added Cambodian travel goods to the list of GSP imports. GSP status for Cambodian footwear would benefit Cambodia by making one of its most prominent industries more competitive in the U.S., and benefit American consumers by making footwear less expensive.

Cambodia Launches Shared Switch Mechanism

On October 20, the National Bank of Cambodia (NBC) held a soft launch for the Cambodian Shared Switch (CSS) mechanism. The CSS connects account records of Acleda Bank, Sathapana Bank and Prasac Microfinance, allowing them to operate ATM and point-of-sale (POS) terminal in tandem. This will increase the interoperability of banking operations from different banks and microfinance deposit-taking institutions (MDIs), improving general accessibility to financial services across Cambodia. All commercial banks and MDIs will be required to have the system in place by January 2018. The CSS is an important step in modernizing the Cambodian payment system and stimulating inter-bank transactions. Furthermore, the drastic reduction of withdrawal and interbank transfer fees will encourage electronic payment usage.

 
 
IN THIS UPDATE
 
 

Regional Affairs
Cambodia, Singapore ink MoU on political consultations

National Affairs
CNRP will not stand in way of CPP defections
Kingdom’s UN ambassador brushes off body’s criticism
'Fear Is Something Constant,' Says Daughter Of Jailed Cambodian Opposition Leader
CNRP’s commune positions hang in the balance
Cambodia Approves Laws to Distribute Opposition Parliamentary Seats to Government-Aligned Parties
Changes to give CNRP district seats to CPP
Cambodia’s government asks the courts to abolish the opposition
Peace accords a ‘ghost’, says Hun Sen, dismissing treaty that established democracy in Cambodia
Cambodia to Further Increase Scrutiny of NGOs
Two journalists charged with incitement in Cambodia
EU, rights groups urge Cambodia to halt attack on opposition
Large Numbers of Opposition MPs Fly out of Cambodia
Exclusive: Cambodian opposition leader calls for sanctions on leadership
Cambodia To Target Foreigners With Irregular Documents

Customs
GMAC urges Cambodian govt to offset rising labour costs
New MoU with Thailand on trade across the borders
Cambodia asks for GSP status

Defense & Security
ASEAN Counter-Terrorism Weaknesses – Analysis

Economics
Cambodia’s economy: Growth and challenges
IMF predicts slowdown on horizon for growth figures
Cambodia’s central bank releases 40 billion riel
Cambodia's Economic Growth Will Require Industry Shift
World Bank hails Cambodia’s stronger PFM systems
Adjusting to economic success in Cambodia

Energy
A look at Cambodia’s energy sector with General Electric’s John Rice
KrisEnergy to extract Cambodia’s first oil in 2019
Solar, Wind Advances Offer Mekong Countries Alternatives to Dams, Coal

Financial Services
Cambodia's central bank encouraging use of Chinese yuan
New inter-bank transfer system
Cambodia Post in joint venture for e-commerce
Cambodia launches first phase of payment inclusion network
Pi Pay links to first bank in step towards fully cashless platform
Cambodia's First Bitcoin Point-of-Sale System Debuts Amid Currency Debate
AMBD signs MoU with National Bank of Cambodia

Food & Agriculture
U.S., Cambodia Promote Young Agricultural Researchers
USAID to finance agriculture projects
Thailand to market organic herbs in Cambodia
Vegetable farmers urged to increase production and to go organic
Singapore asked to increase its imports
CLMV, Japan Discuss Agriculture Export Promotion
Plans to ‘export chicken egg’ bananas
Agriculture scholarships to help nurture local talent
Agricultural sector welcomes new $15m fund
EIF programme continues to reap benefits
Workshop mulls which fruits sweetest for regional plan
Ministry produce plan comes up short
Rice millers get loans to lift storage
Ho Puthea on agriculture, chemical-free vegetables and imports

Health & Life Sciences
Midwives treated 'like civil servants' battle Cambodia's maternal deaths
India health sector aims to bring in Cambodian patients
Improving maternal and newborn care in Cambodia
Scientists on High Alert for Drug-Resistant Malaria As Cambodians in Dark Over Symptoms

ICT
A to-do list for Cambodia’s technology sector
Smart technology helps Cambodia residents beat eviction
Cambodia hopes to launch first satellite in 2021
HR digital transformation gains pace in Cambodia

Infrastructure
New bridge expected to push land prices up
Construction investment rises to $5.63b
Rail link to Thailand a step closer

Manufacturing
GMAC makes run at duty-free access for footwear in the US
Cambodia pushes for fabric-forward rule in RCEP talks
Cambodia garment workers to get 11% wage hike

 
ARTICLE CLIPS
 
 
Regional Affairs

New Thai-Cambodian MoU on border trade Bangkok Post 20th Oct 2017
Cambodia and Thailand will sign a Memorandum of Understanding (MoU) on cross-border trade in early next month to comply with new Thai customs regulations due to come into effect on Nov 13. The signing comes after the two prime ministers, meeting at the Third Cambodia-Thailand Joint Cabinet Retreat in September,  agreed to increase efforts to boost cross-border trade, attract more investment and lift annual bilateral trade to US$15 billion by 2020.

Cambodia, Singapore ink MoU on political consultations Xinhua 17th Oct 2017
Cambodia and Singapore on Tuesday signed a Memorandum of Understanding (MoU) for the establishment of a political consultation mechanism in order to strengthen bilateral ties and cooperation. The deal was inked in Phnom Penh by Cambodian Foreign Minister Prak Sokhonn and his visiting Singapore counterpart Vivian Balakrishnan. "Under the MoU, the two foreign ministries will hold political consultations to further enhance bilateral cooperation in all fields and to exchange views on regional and international issues," Chum Sounry, a spokesman for the Cambodian Ministry of Foreign Affairs, told reporters.

National Affairs

CNRP will not stand in way of CPP defections Khmer Times 24th Oct 2017
The opposition CNRP confirmed yesterday the party will not prohibit its members of parliament or commune chiefs from defecting to the ruling CPP following a call from the Prime Minister for them to do so. Opposition party vice-president Pol Ham said his party will not bar any members from defecting. “It is their right,” he said. “We do not have any measures to prevent them.” On Sunday Mr Hun Sen promised CNRP commune officials they could maintain their positions once their party is dissolved if they defect to the ruling CPP.

Kingdom’s UN ambassador brushes off body’s criticism Phnom Penh Post 18th Oct 2017
Cambodia’s permanent mission to the United Nations has rebutted international criticism regarding the government’s mounting steps to dissolve the opposition Cambodia National Rescue Party, claiming the condemnation was based on misinformation and biased. The National Assembly this week approved amendments to four election laws that would distribute National Assembly seats currently belonging to the CNRP to other minor parties – and its local commune chief seats entirely to the ruling Cambodian People’s Party – should the party be dissolved. The mission’s statement, published Monday evening, alleges that the UN’s Office of the High Commissioner for Human Rights (OHCHR) “fundamentally misinterpreted Cambodia [sic] democracy and human rights”.

'Fear Is Something Constant,' Says Daughter Of Jailed Cambodian Opposition Leader NPR.org 17th Oct 2017
"Fear is something constant," says Monovithya Kem, the daughter of Cambodian opposition leader Kem Sokha. "I can say that although we have always faced a security and safety risk, you don't get accustomed to fear." Her 65-year-old father was arrested in his home in Phnom Pen in early September and has been held since under 24-hour surveillance in a prison along the Vietnamese border. Kem Sokha has been charged with treason, accused of colluding with the United States to overthrow the Cambodian government, charges he denies. He has contact with his wife and lawyers twice a week. If convicted, he would face 30 years in prison. The State Department condemned the arrest, saying it followed "a number of troubling recent steps, including the imposition of unprecedented restrictions on independent media and civil society."

CNRP’s commune positions hang in the balance Khmer Times 16th Oct 2017
The fate of the opposition CNRP’s almost 500 commune posts hangs in the balance after the National Assembly yesterday approved amendments to four laws governing the distribution of the party’s seats should it be dissolved. A total of 67 lawmakers from the ruling CPP passed proposals to amend the legislation on elections for the National Assembly and Senate, as well as provincial, municipal, district and commune councils. All 55 lawmakers from the CNRP boycotted the session yesterday, half of whom have fled overseas for fear of arrest after opposition leader Kem Sokha was detained for allegedly attempting to topple the government with help from a foreign power.

Cambodia Approves Laws to Distribute Opposition Parliamentary Seats to Government-Aligned Parties Radio Free Asia 16th Oct 2017
Cambodia’s National Assembly on Monday approved four amendments to the country’s electoral law, paving the way for 55 seats held by opposition Cambodia National Rescue Party (CNRP) lawmakers to be redistributed to smaller government-aligned parties in the event that it is dissolved. The parliamentary session, which was boycotted by all CNRP lawmakers and attended by Prime Minister Hun Sen, involved no debate and took less than two hours to approve the amendments, which would see the royalist Funcinpec party take 41 seats from the opposition should the CNRP be outlawed ahead of a general election slated for next year.

Changes to give CNRP district seats to CPP Phnom Penh Post 16th Oct 2017
Under proposed amendments to the election law, if the main opposition party is dissolved, CNRP district seats throughout the country would be divvied up among parties that competed at the district level in the 2014 elections, officials confirmed yesterday – with the ruling party the overwhelming beneficiary. Meanwhile, the Interior Ministry said yesterday senators representing the Candlelight Party – formerly the Sam Rainsy Party – would be able to keep their seats. However, they will almost certainly be removed by a vote in the upcoming Senate elections in January, which are decided by commune councillors, almost all of whom will be CPP if the opposition party is dissolved.

Cambodia’s government asks the courts to abolish the opposition The Economist 12th Oct 2017
The Cambodia National Rescue Party (CNRP) is nothing if not hardy. The main opposition to the government of Hun Sen, Cambodia’s strongman of 32 years, it and its precursors have long been subject to official harassment. Its first leader, Sam Rainsy, has fled the country several times to escape defamation charges brought by Mr Hun Sen, most recently in 2015. His successor, Kem Sokha, was arrested last month on trumped-up treason charges. The courts, the army and other arms of the state openly favour the governing Cambodian People’s Party (CPP). Before local elections in June the defence minister declared that the army would “smash the teeth” of anyone who protested against the outcome, as CNRP supporters did in 2013, a few months after a narrow election loss. Yet the CNRP still managed to win 46% of the popular vote, not far behind the CPP’s 51%. That doubtless made the government nervous about parliamentary elections scheduled for July. At any rate, it is taking more radical steps to deal with its pesky opponents.

Peace accords a ‘ghost’, says Hun Sen, dismissing treaty that established democracy in Cambodia Phnom Penh Post 12th Oct 2017
Prime Minister Hun Sen yesterday said the 1991 Paris Peace Accords – often held up as the founding document that brought peace, democracy and human rights to modern Cambodia – was dead in the water. Speaking to some 20,000 factory workers in Phnom Penh yesterday against the backdrop of the most aggressive crackdown on the opposition in years, the premier told the beleaguered Cambodia National Rescue Party and the international community to stop “dreaming” and harking back to the ideals enshrined in the agreement.

Cambodia to Further Increase Scrutiny of NGOs VOA 10th Oct 2017
Cambodia’s interior ministry has ordered officials to report on the activities of civil society groups and grassroots associations and said it will stop planned events if they are deemed a threat to national security. In a letter from the ministry distributed on October 2, the ministry said officials should report on the “nature of activity” at least three days prior to any planned event. The increased pressure on civil society comes amid a widespread crackdown on political freedoms that have seen the leader of the opposition Cambodia National Rescue Party, Kem Sokha, jailed on questionable charges and legal proceedings launched that could see the CNRP dissolved.

Two journalists charged with incitement in Cambodia Committee to Protect Journalists 10th Oct 2017
The Committee to Protect Journalists condemns the legal harassment of Aun Pheap and Zsombor Peter, two journalists who worked for the shuttered Cambodia Daily, and calls on Cambodian authorities to drop all charges against the pair. A Cambodian state prosecutor filed criminal charges against Pheap and Peter for their election-related news coverage in the eastern Rattanakiri province, and accused them of "inciting violence" while reporting, according to the independent daily Phnom Penh Post and Cambodia Daily's former editor-in-chief Jodie DeJonge.

EU, rights groups urge Cambodia to halt attack on opposition The Seattle Times 10th Oct 2017
The European Union and rights groups say the Cambodian government’s move to dissolve the main opposition party would be a serious blow to democracy and undermine the credibility of elections next year. Human Rights Watch said Tuesday that the government of long-serving Prime Minister Hun Sen is making a “naked grab for total power.” Cambodia’s government took initial legal steps last week to dissolve the Cambodia National Rescue Party, its latest move to kneecap the opposition ahead of next year’s general election.

Large Numbers of Opposition MPs Fly out of Cambodia VOA 5th Oct 2017
Almost half of Cambodia’s opposition lawmakers have left the country or are in jail, including most of its leadership, as proceedings to dissolve the party move forward. It was no longer possible to “save democracy” from inside Cambodia, said Cambodia National Rescue Party (CNRP) leader Mu Sochua — who fled on Tuesday saying she’d been tipped off her arrest was imminent. “If there is no democracy and if there is only intimidation and arrest, I think we must find alternative means to push, to promote, and to save democracy in our country,” she said from an undisclosed location abroad.

Cambodia asks for GSP status Khmer Times 5th Oct 2017
Representatives from trade unions and employers associations will put forward a request to the European Union and the United States to consider extending preferential treatment – also known as the Generalized System of Preferences (GSP) – for a number of Cambodian products. The joint statement was released after a closed-door meeting of the Labor Advisory Committee on Minimum Wage for 2018 on Tuesday.

Exclusive: Cambodian opposition leader calls for sanctions on leadership Reuters 4th Oct 2017
An opposition leader who said she fled Cambodia in fear of arrest called on Western donors on Wednesday to impose targeted sanctions on Prime Minister Hun Sen’s government to save democracy in the Southeast Asian nation. Mu Sochua, 63, left Cambodia on Tuesday, saying she had been tipped off that she was among the next targets of a crackdown in which opposition Cambodia National Rescue Party (CNRP) leader Kem Sokha was arrested a month ago and charged with treason.

Cambodia To Target Foreigners With Irregular Documents AEC News Today 4th Oct 2017
Following hot on the heals of a crackdown on endless business visa extensions (See: Axe Falls on Endless Cambodia Visa Extensions) Cambodia’s Department of Immigration (DOI) is set to launch a concerted crackdown on foreigners living in the kingdom with “irregular documents”. In a story published on the Fresh News website in Khmer, DOI chief General Sok P้hal is reported as saying the concerted action to root out foreigners staying in the Kingdom with “irregular documents” follows a meeting at the Ministry of Interior (MOI) this morning, October 4, to discuss implementation of sub-decree 129 dated August 15, 2017 on the ‘cancellation and revoking of irregular documents used by foreigners living in Cambodia’.ed to this story

Customs

GMAC urges Cambodian govt to offset rising labour costs Fibre2Fashion 9th Oct 2017
The Garment Manufacturers Association in Cambodia (GMAC) recently urged the government to help export-oriented manufacturers reduce the cost of conducting business to offset a higher minimum wage and workers benefit package due to be implemented from January 1. It requested the government to consider cutting the export management fee by half.

New MoU with Thailand on trade across the borders Khmer Times 20th Oct 2017
Cambodia and Thailand will sign a Memorandum of Understanding (MoU) on cross-border trade in early November to comply with Thailand’s new customs law, which is due to come into effect on November 13. The announcement of the new MoU comes after the prime ministers of both nations, meeting during the Third Cambodia-Thailand Joint Cabinet Retreat in September, agreed to increase efforts to boost cross-border trade, attract more investment and reach $15 billion in bilateral trade by 2020. The announcement was made by Kun Nhem, the director of Cambodia’s General Department of Customs and Excise (GDCE), who last week led a trade delegation to Bangkok to meet his Thai counterparts and negotiate the details of the agreement on cross-border trade.

Defense & Security

ASEAN Counter-Terrorism Weaknesses – Analysis Eurasia Review 16th Oct 2017
Since 2016, the self-proclaimed Islamic State (IS), or Daesh, has sustained a propaganda offensive directed at Southeast Asian Muslims as they recruit Indonesians, Malaysians and Filipinos to join the war effort in Iraq and Syria, or to wage armed jihad in their own region.1 IS’ approach to Southeast Asia is a part of its regional, transnational agenda. Similar to Filipino, Indonesian, and Malay fighters being regrouped in the Katibah Nusantara, a Malay-speaking regional battalion on the Syrian-Iraqi front, IS propaganda addressed to local sympathisers calls for Southeast Asian jihadists of all nationalities to come together in Mindanao, located in South Philippines, to train and fight.2

Economics

Cambodia’s economy: Growth and challenges Khmer Times 24th Oct 2017
Cambodia’s economy continues to grow at an impressive pace. Growth has benefited from a stable macroeconomic environment, an open trade and investment regime, as well as the country’s location in the world’s fastest-growing region and its relatively young population. Looking ahead, the economic outlook is positive, although significant challenges remain. The recently published IMF staff report on Cambodia projects economic activity to grow by around seven percent over the next few years. Some investors appear in wait-and-see mode ahead of next year’s general elections.

IMF predicts slowdown on horizon for growth figures Phnom Penh Post 23rd Oct 2017
Cambodia’s economic growth will remain on course this year but will likely slow in the coming years to 6 percent as investment tapers off and credit growth tightens, according to an updated note by the International Monetary Fund (IMF) released on Friday. While the report did not predict economic growth figures for 2018 and 2019, it did say that over the medium term the Kingdom’s current growth rate of 6.9 percent was not sustainable as private sector investment is expected to moderate and public spending increases.

Cambodia’s central bank releases 40 billion riel Phnom Penh Post 18th Oct 2017
The National Bank of Cambodia yesterday held its 13th liquidity-providing collateralised operation, making 40 billion riel ($9.89 million) available to financial institutions in an auction in which repurchase agreements, or repos, were signed for 2 billion riel ($500,000). Only one financial institution made a successful bid during the auction, receiving funds at an interest rate of 3 percent, NBC said in a release.

Cambodia's Economic Growth Will Require Industry Shift The News Lens International Edition 16th Oct 2017
Cambodia recently made the transition from a low income to a lower middle-income country, according to the World Bank’s rankings. This is good news, but it poses a question: does Cambodia need to rethink its model of export-driven economic growth, as preferential access for its exports to developed countries is gradually reduced or as aid flows diminish? The answer is not necessarily, at least for now. But it should start preparing for the future immediately. Cambodia still has least developed country (LDC) status as defined by the United Nations, and will likely retain its trade privileges for a while yet.

World Bank hails Cambodia’s stronger PFM systems Public Finance International 11th Oct 2017
Cambodia’s public finance management system has been “substantially strengthened” at a central level, the World Bank has reportedly said. The system faced critical challenges, such as a poorly designed budgetary system and inadequate domestic revenue but is now on track, local media reported. Ellen Goldstein, World Bank country director for Cambodia, Myanmar and Laos, said: “Through the reform efforts by the government of Cambodia, Cambodia PFM systems have been substantially strengthened, particularly at the central level.”

Adjusting to economic success in Cambodia East Asia Forum 9th Oct 2017
Cambodia recently made the transition from a low income to a lower middle-income country, according to the World Bank’s rankings.This is good news, but it poses a question: does Cambodia need to rethink its model of export-driven economic growth, as preferential access for its exports to developed countries is gradually reduced or as aid flows diminish? The answer is not necessarily, at least for now. But it should start preparing for the future immediately. Cambodia still has least developed country (LDC) status as defined by the United Nations, and will likely retain its trade privileges for a while yet. But it will also likely transition to upper middle-income status by around 2030 if it maintains current growth rates. With adequate advanced planning, Cambodia can avoid being a victim of its own success when it does so.

Energy

A look at Cambodia’s energy sector with General Electric’s John Rice Khmer Times 23rd Oct 2017
With the country’s economy and the income level of its population on the rise, the need for power in the kingdom is now greater than ever. However, Cambodia finds itself lagging behind most of its Asean peers when it comes to energy production, with the government struggling to attract foreign direct investment due to the high cost of electricity. The government has been encouraging foreign multinationals to invest in power generation, mostly focusing on coal and hydroelectricity. The goal is to enable access to power for 14,073 villages across the nation by 2020 and to have 70 percent of all households nationwide with electricity by 2030. Khmer Times sat down with John Rice, the vice-president of General Electric, to discuss this and other topics related to the local energy sector.

KrisEnergy to extract Cambodia’s first oil in 2019 Southeast Asia Globe Magazine 20th Oct 2017
KrisEnergy, the Singaporean oil and gas company that operates Cambodia’s offshore Block A in the Gulf of Thailand, has announced that it has reached a final investment decision (FID) “to proceed with the first phase of development for the Apsara oil field”, and expects to begin oil production in 2019. “FID is another step in progressing the Apsara development within the target timeframe following the formal signing of the petroleum agreement in late August,” Kelvin Tang, KrisEnergy’s chief executive officer, said in a statement, adding that the next stage for KrisEnergy was to source materials, equipment and services.

Solar, Wind Advances Offer Mekong Countries Alternatives to Dams, Coal VOA 19th Oct 2017
Advocates of renewable energy in the United States point to its increasingly competitive cost in arguing against greater use of fossil fuels. Experts at a U.S. think tank have the same message for countries in the Mekong region, which are considering plans to expand hydropower dams and coal plants. New economic and technological opportunities for improving and diversifying the Mekong Region’s energy mix are laid out in a report by the Washington-based Stimson Center.

Financial Services

Cambodia's central bank encouraging use of Chinese yuan Xinhua 25th Oct 2017
The National Bank of Cambodia (NBC), the country's central bank, has been encouraging businesses and individuals to use renminbi (RMB), or the Chinese yuan, in order to further increase trade and investment volumes between the two countries, officials said on Tuesday. Seventeen out of 54 banks in the country currently transacted in yuan, and four of them, Bank of China Phnom Penh Branch, Industrial and Commercial Bank of China (ICBC) Phnom Penh Branch, Canadia Bank, and First Commercial Bank, received deposits in yuan, said NBC's deputy governor Neav Chanthana.

New inter-bank transfer system Khmer Times 24th Oct 2017
The National Bank of Cambodia (NBC) last week held the soft-launch for its new inter-bank transfer system that will allow customers to transfer money between participating financial institutions using payment cards at ATMs and point-of-sale (POS) machines. Known as Cambodian Shared Switch, or CSS, the new system is a collaboration between three local financial institutions: Acleda Bank, Sathapana Bank and Prasac Microfinance.

Cambodia Post in joint venture for e-commerce Phnom Penh Post 23rd Oct 2017
State-owned Cambodia Post has partnered with the private sector to establish a new company that is expected to launch and manage a heavyweight e-commerce platform for the local market by early 2018. The new venture, Cambodia Post eSolution Co Ltd, will develop a platform for e-commerce as well as e-banking and online courier services. The platform will also facilitate payments to relevant government institutions such as the Tax Department.

Cambodia launches first phase of payment inclusion network Central Banking 20th Oct 2017
Cambodians will soon be able to perform interbank transactions using payment cards at ATMs and point-of-sale terminals, following the “soft launch” of the Cambodian Shared Switch. In a statement, the National Bank of Cambodia says the system will allow customers to withdraw cash and make payments from all ATMs signed up to the initiative, not matter who they bank with.

Pi Pay links to first bank in step towards fully cashless platform Phnom Penh Post 12th Oct 2017
Mobile payment platform Pi Pay announced yesterday that it has signed an agreement with ABA Bank that allows the bank’s customers to seamlessly transfer money between their mobile wallet and ABA accounts, a move the company describes as a milestone toward creating Cambodia’s first fully cashless digital wallet not tied to a specific bank. Tomas Pokorny, CEO of Pi Pay, said the partnership was a “very big step” for the fledgling company that aims to utilise financial technology, or fintech, to promote financial inclusion and eliminate the need for customers to carry cash.

Cambodia's First Bitcoin Point-of-Sale System Debuts Amid Currency Debate Bitcoin News 12th Oct 2017
Quietly, Cambodia has racked up solid economic gains now spanning more than a decade. Inflation is down. Major global economic metrics point to it lifting all boats, including its very poor. At least part of its growth has come due to allowing foreign investment, which include repopulating rice from the Philippines to a domestic culture familiar with wide varieties of tourists. With investment and tourism comes currencies, and with them the need for exchange and pricing structures.

AMBD signs MoU with National Bank of Cambodia Borneo Bulletin Online 10th Oct 2017
The Financial Intelligence Unit, Autoriti Monetari Brunei Darussalam (FIU, AMBD) signed a memorandum of understanding (MoU) with the Cambodia Financial Intelligence Unit, National Bank of Cambodia (CAFIU) in Bandar Seri Begawan recently. Under the MoU, both agencies agree to cooperate in the exchange of financial intelligence that may assist in the investigation and prosecution of persons suspected of money laundering and terrorism financing. This marks the strong commitment of both agencies in the global fight against money laundering and terrorism financing.

Food & Agriculture

U.S., Cambodia Promote Young Agricultural Researchers VOA 24th Oct 2017
America’s ambassador to Cambodia has said that the country’s young scientists will play a leading role in developing its agricultural sector. William Heidt, a U.S. ambassador, made the comments after a meeting with Cambodia’s agriculture minister, Veng Sakhon, in Phnom Penh last week. The ambassador was launching a new scholarship program with grants awarded by the Center of Excellence for Sustainable Agricultural Intensification and Nutrition. “Of course, farming is not just planting vegetables and rice. And it’s not just research projects either. It is also a business, one that is becoming more tightly connected to international markets and more dependent on international market forces,” he said.

USAID to finance agriculture projects Phnom Penh Post 18th Oct 2017
USAID’s Development Credit Authority (DCA) announced that it will make as much as $15 million in financing available to support agricultural development in four Cambodian provinces through partnerships with multiple financial institutions. To complement its Feed the Future Initiative and promote domestic horticulture, DCA has partnered with AMK Microfinance Institution Plc, LOLC (Cambodia) Plc and RMA Financial Services (Cambodia) Plc to handle and disperse loans for agribusinesses in Siem Reap, Kampong Thom, Battambang and Pursat provinces, according to a press release yesterday.

Thailand to market organic herbs in Cambodia Khmer Times 24th Oct 2017
The Thai Commerce Ministry plans to promote the export of Thai organic herbs in Cambodia, Laos, Myanmar and Vietnam, aiming to create added value for the sector. The ministry will start its herbal marketing plan in Cambodia, Laos, Myanmar and Vietnam, where consumers are familiar with Asian herbs, according to a recent article published in the Bangkok Post. It will eventually widen its plan to include other markets such as the European Union and the US, where people increasingly favour organic products.

Vegetable farmers urged to increase production and to go organic Khmer Times 23rd Oct 2017
As the debate over imports of vegetables containing unsafe levels of chemicals rages, farmers and vegetable producers have been asked to increase output to meet local demand and adopt good agricultural practices to guarantee the safety of local produce. The requests were made during an agriculture and food security forum titled ‘Fostering a safe and sustainable vegetable sector’, which was attended by farmers, government officials and representatives of vegetable production associations and NGOs to discuss ways to increase local food production and uphold food safety standards. Ho Puthea, the director of the Horticulture and Subsidiary Crops Department at the Ministry of Agriculture, said boosting local production to lessen dependence on imports from neighbouring countries was one of the hottest topics of the evening, while concerns over food safety and the chemicals carried by imported produce were also on the agenda.

Singapore asked to increase its imports Khmer Times 20th Oct 2017
Cambodia has asked Singapore to consider buying more Cambodian agricultural products, particularly rice pepper and mango. The request was made during a meeting on Tuesday between Foreign Minister Prak Sokhonn and his Singaporean counterpart Vivian Balakrishnan. “To further increase bilateral trade, the Cambodian Minister requested Singapore to consider importing agricultural products, namely rice, peppers, and mangoes,” the official statement from the Ministry of Foreign Affairs and International Cooperation reads.

Plans to ‘export chicken egg’ bananas Khmer Times 20th Oct 2017
In a bid to promote local agricultural products, the government has unveiled plans to begin exporting chicken egg bananas to overseas markets. The announcement comes only two months after the country exported its first international shipment of yellow bananas, which was sent to China. The chicken egg banana, called “chek pong moan” in Khmer, is also known by its scientific name of “musa aromatic”. Veng Sakhon, the Minister of Agriculture, said on Wednesday: “First, we need to make this fruit one of the top products in the national market, and then we will be able to send it abroad.”

Agriculture scholarships to help nurture local talent Khmer Times 19th Oct 2017
A new agriculture scholarship and research grant were launched yesterday with the aim of nurturing local expertise by providing students opportunities to pursue graduate degrees and conduct research. The new programmes, which will make $346,000 available in research opportunities, are supported by the US’s Feed the Future Initiative through the Center of Excellence on Sustainable Agricultural Intensification and Nutrition (CE SAIN). Fellows will conduct research on innovative agricultural technologies in technology parks spread across five provinces. Studies based on this research will be made public and will be accessible to farmers and agriculture companies.

Agricultural sector welcomes new $15m fund Khmer Times 18th Oct 2017
A new partnership between the US Agency for International Development Credit Authority (DCA) and three local microfinance institutions (MFIs) will see the creation of a new $15-million fund to tackle the lack of financing opportunities the agricultural sector faces in Siem Reap, Battambang, Kampong Thom and Pursat provinces. The seven-year programme is a collaboration between DCA and Cambodian MFIs AMK Microfinance Institution, LOLC Cambodia and RMA Financial Services Cambodia. “These loans will expand agribusiness investment to drive economic growth, job creation and sales of agricultural commodities,” the official statement from the US Embassy in Phnom Penh reads.

EIF programme continues to reap benefits Khmer Times 13th Oct 2017
Cambodia has substantially improved its trading capabilities and position as a player in the global market as a direct result of participation in the Enhanced Integrated Framework (EIF), experts speaking during a two-day EIF board meeting that ended yesterday said. The EIF is a global development programme that aims to support least developed countries (LDCs) to better integrate into the global trade market and to make trade a driver for development. The EIF’s Cambodia Export Diversification and Expansion Program (CEDEP) consists of two parts – part one runs from 2012 to 2016, while part two covers 2014 to 2018.

Workshop mulls which fruits sweetest for regional plan Phnom Penh Post 13th Oct 2017
German development agency GIZ held a consultation workshop in Phnom Penh yesterday for its two-year Facilitating Trade in Agricultural Goods in Asean (FTAG) initiative, holding discussions with Ministry of Agriculture officials and local traders aimed at identifying the most suitable fruit and vegetable crops for cross-border trade between Cambodia, Thailand and Vietnam. The $1.17 million regional initiative, first launched in June and set to run until mid-2019, aims at giving farmers in the region more market access and streamlining the cross-border trade of selected agricultural products. Claudius Bredehoeft, senior adviser to the project, said the FTAG initiative aims to work closely with government officials in the three Southeast Asian countries to harmonise the regulatory framework concerning food safety and sanitary and phytosanitary (SPS) measures and procedures for selected fruit and vegetable products.

Ministry produce plan comes up short Phnom Penh Post 10th Oct 2017
A $20 million Ministry of Agriculture programme has struggled to meet its goal of introducing 160 tonnes a day of high-quality locally produced vegetables to the market, with ministry officials saying that as a result of high production costs and pricing issues it was currently supplying less than a third of that amount. The Boosting Food Production programme, a three-year initiative launched in mid-2016, had set a goal of supplying the local market with 160 tonnes a day of vegetables that meet international quality and safety standards. Kean Sophea, deputy director of the Department of Horticulture and Subsidiary Crops at the Ministry of Agriculture, said that while the programme had so far signed on 2,060 farmers and 260 rice cooperatives, disagreements between farmers and buyers over prices had led to its poor performance.

Rice millers get loans to lift storage Khmer Times 10th Oct 2017
Three rice millers were recently selected to become recipients of short-term emergency loans disbursed by the Rural Development Bank (RBD), an initiative that aims to boost their storage capacity during harvest season as well as bolster paddy prices for farmers. The loans will be used to build storage facilities such as depots and silos. Amru Rice Cambodia was awarded one of the loans and will be building silos in Kampong Thom province. Another recipient for a loan, Khmer Food Group, was chosen to build silos in the provinces of Prey Veng and Takeo, according to a statement from the RDB. More than 10 companies filed applications to gain access to the loans. The deadline for applications closed on September 22.

Ho Puthea on agriculture, chemical-free vegetables and imports Khmer Times 9th Oct 2017
Khmer Times’ Sok Chan discusses the country’s agricultural policy with Ho Puthea, the director of horticulture and subsidiary crops at the Ministry of Agriculture’s General Directorate of Agriculture.

Health & Life Sciences

Midwives treated 'like civil servants' battle Cambodia's maternal deaths Reuters 17th Oct 2017
A fter three deliveries, including a stillborn, at her home in Perah Andong village in Cambodia, Yeng Sienghay gave birth to a healthy baby girl in the local health centre about four months ago, overseen by three midwives. Unlike her previous three pregnancies when Yeng did not visit the health centre even once, this time around she went to the centre every month - and every week in her eighth month - and diligently followed the midwife’s instructions.

India health sector aims to bring in Cambodian patients Phnom Penh Post 16th Oct 2017
Indian companies in the pharmaceutical and health care sector are seeking to enhance their footprint in the Kingdom by extending beyond pharmaceutical trade through state financing that could establish a direct link to bring Cambodian medical tourists to the subcontinent. Speaking on the sidelines of the Advantage Healthcare India 2017 – a summit for medical travel held annually in the southern Indian city of Bangalore – Sandeep Majumdar, president of the Indian Chamber of Commerce in Cambodia said that $36 million of last year’s total bilateral trade of $160 million was related to the health care industry.

Improving maternal and newborn care in Cambodia Khmer Times 10th Oct 2017
Cambodia has accomplished major successes in improving maternal and child health. Maternal deaths decreased from 427 in 2005 to 170 per 100,000 live births in 2014. Newborn deaths dropped in the same period of time from 28 to 18 per 1,000 live births. Despite these successes, maternal and neonatal mortality are still high by international and regional comparison. High rates of maternal and neonatal mortality are associated with inadequate and poor-quality maternal health care, including antenatal, delivery and postnatal care. Antenatal care is considered as a key maternal service in improving a wide range of health outcomes for women and children.

Scientists on High Alert for Drug-Resistant Malaria As Cambodians in Dark Over Symptoms VOA 5th Oct 2017
Som Aun contracted malaria after moving to Koh Kong province’s Thma Bang district in 2002. Four years later, two of his children fell victim to the infectious disease. Aun told VOA Khmer that his children had remained infected for more than five years because no doctors had been able to provide successful treatment. “Sometimes the disease is healed for one month, but it would come back in the next two months,” he said. Aun is not sure why his children have not been cured, but there is growing concern that a strain of drug-resistant malaria in the region - labeled a “superbug” by researchers - has led to the failure of artemisinin-based therapies.

ICT

A to-do list for Cambodia’s technology sector Phnom Penh Post 26th Oct 2017
Did you know that, after the United States and China, Southeast Asia is now the world’s hottest tech market? Eight “unicorns” – startups valued at more than $1 billion – have emerged in the region, including Sea (gaming, Singapore), GrabTaxi (transportation, Malaysia), Tokopedia (marketplace, Indonesia), and VNG (gaming, Vietnam). The region has more than 300 million active mobile internet users, most of them under 35. US tech giants and venture capital firms have set up offices in Singapore and other cities in the region. They are building relationships, rolling out new products and funding dozens of regional startups. Cambodia’s tech sector is growing rapidly too. Already, Cambodia’s rising tech companies like Morakot Technology, Khmerload, Pathmazing and many others are exploring Asean markets to position themselves as regional players. Cambodian tech firms are doing a surprising amount of work for large American e-commerce websites, sports leagues, and libraries.

Smart technology helps Cambodia residents beat eviction Mail Online 18th Oct 2017
A software tool to help poor urban Cambodians facing eviction get secure land titles can also be used in rural areas where tens of thousands of people are snared in conflicts over land, according to the rights group that designed the technology.

Cambodia hopes to launch first satellite in 2021 Bangkok Post 17th Oct 2017
Cambodia hopes to launch its first communications satellite into orbit as early as 2021, at an estimated cost of US$150 million, according to a senior official at the Telecom Regulator of Cambodia (TRC). Speaking after a workshop called to gauge market demand, Im Vutha, spokesman for TRC, said it would be a milestone for the local communications industry. Monday's workshop brought together representatives of the Ministry of Post and Telecom (MoPT), the TRC, and heavy weights of the country’s telecommunications, broadcasting and technology sectors to discuss the prospect of launching Cambodia’s first satellite.

HR digital transformation gains pace in Cambodia HRM Asia 11th Oct 2017
The world of traditional HR is being rapidly disrupted as cloud computing, social media, mobile technology and analytics continue to change the way businesses are run across South East Asia. In order for companies to keep pace with these trends, it is essential to take their HR processes into the digital era in order to meet these challenges head-on. This was the headline message delivered by law and tax advisory firm VDB Loi, at the recent 47th CAMFEBA HR Conference, held in Phnom Penh, Cambodia.

Infrastructure

New bridge expected to push land prices up Khmer Times 25th Oct 2017
Real estate insiders are optimistic that this week’s ground-breaking ceremony for the construction of a concrete bridge on National Road 5 on the outskirts of Phnom Penh city centre will be the start of speculators pushing up property prices in the area. Prime Minister Hun Sen on Monday presided over the ground-breaking ceremony before construction starts for a concrete bridge spanning nearly one kilometer across the Tonle Sap River from Chroy Changvar Satellite City to National Road 5, built on a budget of about $35 million.

Construction investment rises to $5.63b Khmer Times 18th Oct 2017
Construction investment during the first nine months of the year reached $5.63 billion, up 22 percent over the same period last year, with a total increase of $5.636 million, according to a senior official at the Ministry of Land Management. Lao Tep Seyha, an undersecretary of state at the ministry, said in an interview with a local television station on October 11 that the ministry approved 2,522 projects worth about $5.63 billion, an increase of 22 percent on the same period last year.

Rail link to Thailand a step closer Khmer Times 5th Oct 2017
As an agreement on railway transportation materialises, Cambodia and Thailand are set to hold a ceremony early next year to celebrate the official opening of the line that will connect Phnom Penh and Bangkok, a representative of the Ministry of Public Works and Transportation (MPWT) said yesterday. The ceremony will be attended by Prime Minister Hun Sen and his Thai counterpart, General Prayut Chan-o-cha, said Ly Borin, an Under Secretary of State at the MPWT. The new railway will link Phnom Penh and the Thai capital Bangkok via Poipet city, which shares the border with Aranyaprathet in Thailand.

Laos

CLMV, Japan Discuss Agriculture Export Promotion KPL: Lao News Agency 18th Oct 2017
Representatives of ASEAN member countries of Cambodia, Lao PDR, Myanmar and Vietnam (CLMV) and Japan met in Vientiane Capital to discuss the promotion of the export of made-in-Laos agricultural products. “The majority, approximately 70%, of Lao people are engaged in agricultural production, so the agricultural development is very important to all people,” Vice Minister of Industry and Commerce Phanthong Phitthoumma told a seminar held in Vientiane on Oct 17. The workshop was attended by Secretary General of ASENA-Japan Center Mr Masataka Fujita, senior officials from relevant ministries of Lao PDR and secretary generals of CMV national chambers of commerce.

Manufacturing

GMAC makes run at duty-free access for footwear in the US Phnom Penh Post 18th Oct 2017
The industry body representing Cambodia’s garment sector met the deadline to submit a petition to the United States government yesterday asking it to extend the duty-free privileges of its Generalised System of Preferences (GSP) scheme to include footwear, a move that could boost the industry’s competiveness by giving local manufacturers an advantage in the world’s biggest consumer market. The petition from the Garment Manufacturers Association in Cambodia (GMAC) comes as the United States is set to discuss both the annual renewal of its GSP scheme by the end of this year and the GSP Footwear Act of 2017, which was introduced to the US House of Representatives in May.

Cambodia pushes for fabric-forward rule in RCEP talks Just-Style 17th Oct 2017
Cambodia's garment manufacturers have urged the government to push for the fabric-forward rule during negotiations for the Regional Comprehensive Economic Partnership (RCEP) – a move that could hurt the sector if not included, they say. During a meeting with government officials, representatives of the Garment Manufacturers Association of Cambodia (GMAC) said they were particularly eager to know how the agreement will handle the rules of origin.

Cambodia garment workers to get 11% wage hike Just-Style 6th Oct 2017
Cambodia's garment, textile and footwear workers are to receive an 11% rise in minimum monthly wages from the beginning of next year. Wages for the sector, which generates US$7bn annually for Cambodia's economy, will increase to $170 from January 2018, the Ministry of Labor and Vocational Training said yesterday (5 October). The move comes just ten months before the country's general elections and attempts to win the votes of Cambodia's 800,000 garment workers, and builds on the current minimum wage of $153 per month. The new wage is above the Ministry of Labour's suggestion of $162.67 and the Garment Manufacturers Association in Cambodia's (GMAC) proposed $161, and has been met with a mixed reaction among unions and the industry.