| Regional Affairs
Abe's advisor calls for fair election in Cambodia- NHK WORLD 24th Mar 2018
A special advisor to Japanese Prime Minister Shinzo Abe has called for a free and fair election in Cambodia. Some western countries are concerned that the general election, which is scheduled to be held in Cambodia in July, will not be free and fair. After arriving in the country on Friday, Kentaro Sonoura held talks with Cambodian Prime Minister Hun Sen in Phnom Penh. Last year, the leader of the Cambodia National Rescue Party, the country's largest opposition party, was arrested on suspicion of treason. The party was forced to disband. In addition, 118 of its top officials have been banned from political activity for 5 years. Sonoura said Hun Sen explained that the general election in July will be free and fair, and that it will be carried out in accordance with domestic laws.
The Truth About US-China Competition in Cambodia The Diplomat 2nd Mar 2018
It’s been yet another active week for Cambodia’s foreign relations, with the United States finally announcing expected aid cuts on Phnom Penh and Prime Minister Hun Sen playing up military assistance from China ahead of scheduled defense exercises. The developments, and the Cambodian government’s reactions to them, fit into a continued pattern of the interplay between Phnom Penh’s domestic politics and the interactions with – and the dynamics between – Washington and Beijing. It has been common for U.S.-China dynamics in Southeast Asia to be subject to gross exaggeration and great oversimplification over the years. The richer set of alignments of Southeast Asian states tend to be caricatured as being focused on Washington and Beijing alone; individual developments are often dramatized as indicators of broader strategic shifts; and temporary perceived gains or setbacks for China and the United States in individual capitals tend to be seized upon to advance narratives around China’s dominance or America’s decline, both of which are overstated.
National Affairs
From Canada, former opposition leader urges delay of Cambodia's national election Phnom Penh Post 28th Mar 2018
Former deputy opposition leader Mu Sochua, testifying before the Canadian parliament’s subcommittee on International Human Rights, urged a delay of Cambodia's July 29 national election to allow more time for opposition parties to contest at the polls. Sochua fled Cambodia following the September arrest of opposition party leader Kem Sokha on charges of treason after receiving word from a government official that her own arrest was imminent. Their party – the Cambodia National Rescue Party, the nation's only credible opposition – was forcibly dissolved by the Supreme Court just over a month later. Speaking in Ottawa on Tuesday, Sochua repeated calls for targeted sanctions, warned foreign investors not to pour their money into the Kingdom, asked for a special Canadian delegation to visit Cambodia and put pressure on lawmakers.
Cambodia’s Human Rights Face Pressure as Companies Reconsider Sourcing There The Cambodia Daily 23rd Mar 2018
Cambodia’s labor and human rights controversies are seeing increased scrutiny from U.S. industry and could threaten its growth as a key apparel and footwear supplier. This week, a coalition of industry organizations–the American Apparel & Footwear Association, amfori, Ethical Trading Initiative, Fair Labor Association, Fair Wear Foundation and Social Accountability International–sent a letter to Cambodian Prime Minister Hun Sen urging the government to take action on labor rights and human rights. “We write to express our growing concern over recent developments that not only seem to undermine progress towards improving worker rights, but also appear to have created an environment that has weakened protection of human rights,” the coalition wrote. “As such, we also urge your government to guarantee respect of human rights and fundamental freedoms and to provide full protection of all human rights defenders in your country.”
US funding conditional on Cambodia’s release of political prisoners, reinstatement of CNRP Phnom Penh Post 23rd Mar 2018
The United States has passed a $1.3 trillion spending bill that looks to cut funding for Cambodia unless the country releases all political prisoners and reinstates the opposition CNRP. The provisions in the bill on Cambodia call for US programs to counter the influence of China – whose ever-increasing presence in the country was highlighted on Friday as Prime Minister Hun Sen praised Chinese aid while inaugurating a road it had funded. The omnibus bill, which averts a US government shutdown, was signed into law by US President Donald Trump, who initially threatened to veto the legislation. The mammoth document says none of the funds made available to assist the Cambodian government will be forthcoming unless the secretary of state reports that Cambodia is “taking effective steps” to respect the rights enshrined in Cambodia’s Constitution.
Apparel groups including H&M and Gap urge Cambodia garment industry reform, seek meeting with Hun Sen Phnom Penh Post 21st Mar 2018
A group representing some of the largest apparel brands in the US and Europe – including Gap, H&M and ASOS – expressed “growing concern” on Tuesday over several controversial labour laws and ongoing court cases against unionists described as restrictive and unjust. In an open letter to Prime Minister Hun Sen, the apparel groups also call for amendments to the contentious 2016 Trade Union Law and ask the government to strengthen the Arbitration Council, a dispute resolution body that has gained a reputation for fairness and independence. Since the passage of the Union Law, the number of cases heard by the council has plummeted, which unions attribute to the law’s onerous registration rules and other restrictions on unions’ activities. In the letter, the group, which includes the US-based trade group American Apparel & Footwear Association and the UK-based advocacy group Ethical Trading Initiative, warns that restrictions on freedom of association “will make Cambodia an unattractive and expensive place to do business”.
UN council to discuss 'deteriorating' rights situation in Cambodia Phnom Penh Post 21st Mar 2018
The United Nations Human Rights Council is expected to hear strong criticism of Cambodia's government at a Thursday meeting in Geneva that will include statements from NGOs concerned about increasing repression of politicians and civil society. The UN typically uses the session on technical assistance and capacity building to highlight progress in specific countries. It will also address the months-long downturn in Cambodia, said Laila Matar, a deputy director at Human Rights Watch responsible for monitoring the United Nations. They "will touch on moves by the Hun Sen government in advance of July elections including the arrest of the leader of the opposition, dissolution of the main opposition party, prosecution and jailing of human rights defenders and politicians, and closure or censorship independent media,” she said in an email.
Europe voices ‘serious concerns’ over rights Phnom Penh Post 16th Mar 2018
The European Union expressed “serious concerns” about the Cambodian political situation during a UN Human Rights Council meeting on Wednesday, drawing a sharp rebuke from the Kingdom’s delegation. Cambodia’s ongoing political crackdown has seen the main opposition party dissolved and its leader arrested for alleged treason, as well as the shuttering of media outlets and pressure on civil society. “The EU remains deeply concerned about the continuing deterioration of the political and human rights situation in Cambodia and the escalating repression of the opposition, civil society and the media,” said the EU representative. “The EU reiterates that an electoral process from which the main opposition party has been arbitrarily excluded is not legitimate,” the representative continued, calling for the reinstatement of the Cambodia National Rescue Party and its elected officials.
Cambodian views on the U.S., Japan and China The Japan Times 13th Mar 2018
When it chaired the ASEAN Summit in the autumn of 2012, Cambodia arranged for the South China Sea issue to be dropped from the joint statement. This left the strong impression that Cambodia was a mouthpiece for China in Southeast Asia. It is true that China has made significant investments in Cambodia and that the latter’s economy has become increasingly dependent on Chinese money. Earlier this year, I spoke with a number of government officials, media representatives and researchers in the Cambodian capital of Phnom Penh, about Cambodia’s foreign policy and awareness of international affairs. One of the impressions that these interviews left on me was that caution is needed before reaching any reductive conclusion about the relationship between Cambodia and China, specifically that Cambodia is under China’s influence. What does that mean exactly? The interviews took place over a short period of time and the number of interviewees was limited, so the findings should be treated with appropriate caution. Still, when long-term foreign residents of Cambodia were asked about the same topic, many said that they had a similar impression.
Cambodia's former opposition head says open to talks with PM Channel NewsAsia 5th Mar 2018
Cambodia's former opposition leader Sam Rainsy said on Sunday he was open to talks with Prime Minister Hun Sen, who has held power since 1985, to end a crisis caused by the dissolution of the main opposition party ahead of elections in July. The Cambodia National Rescue Party (CNRP) was dissolved by the Supreme Court last November at the request of Hun Sen's government who said they had been plotting to take power with the help of the United States. The CNRP denies the allegation. The dissolution followed the arrest of party leader Kem Sokha who was also accused of plotting to take power with U.S. help. That charged was mounted because of the threat the CNRP posed at the elections set for July 29, he said.
Cambodian prime minister turns down offer of talks from former... Reuters 5th Mar 2018
Cambodian Prime Minister Hun Sen on Monday turned down an offer of talks from former opposition leader Sam Rainsy to end a crisis caused by the dissolution of the main opposition party ahead of general elections set for July 29. The Supreme Court last November dissolved the Cambodia National Rescue Party (CNRP), at the request of the government of Hun Sen, which said it had been plotting to take power with the help of the United States. The CNRP, and the United States embassy, have denied the allegation. In a speech on Monday Hun Sen, who has held power since 1985, said he was not willing to talk to Sam Rainsy, citing the latter’s criminal convictions.
Cambodia questions US aid cut: 'There is no aid' Aljazeera 3rd Mar 2018
Cambodia's prime minister has accused the US government of being dishonest in its announced suspension of aid to the Southeast Asian nation, saying Cambodia had already stopped receiving aid from the US in 2016. "Please, US ambassador, answer this one question: Why did you announce cutting aid while there is no aid? Do you intend to distort the reputation of Cambodia?" The US will cut military support and financial aid to Cambodia over a series of undemocratic "setbacks", the White House announced recently. Cambodia's management of its recent senate election, held on Sunday, is among a number of concerns held by the US regarding the health of democracy in the Southeast Asian country, the White House said on Tuesday. "Senate elections on February 25 … failed to represent the genuine will of the Cambodian people," a White House statement said. "These setbacks compelled the United States to review its assistance to Cambodia to ensure that American taxpayer funds are not being used to support anti-democratic behaviour."
Cambodian PM's son takes up senior post in military The Straits Times 3rd Mar 2018
The eldest son of Cambodian Prime Minister Hun Sen has assumed a position as joint chief of staff of Cambodia's armed forces, the latest promotion of one of Mr Hun Sen's family members to a senior post aimed at apparently consolidating his grip on power. Cambodian Defence Ministry spokesman Chhum Socheat said yesterday that Lieutenant-General Hun Manet, who is also a deputy commander of the Royal Cambodian Armed Forces, has taken on the role of joint chief of staff, replacing General Kun Kim, who is on sick leave. In January, Mr Hun Sen appointed his son-in-law as deputy national police chief, and in December, his youngest son was promoted to the rank of colonel in his father's bodyguard unit.
Cambodia 'shocked' by 'disrespectful' aid cut, says democracy... Reuters 28th Feb 2018
Cambodia said on Wednesday it was saddened and shocked by a “disrespectful” U.S. decision to rein back aid programs because of perceived democratic setbacks and defended its record on democracy. The White House said on Tuesday it was suspending or curtailing several Treasury, USAID and military assistance programs that support Cambodia’s military, taxation department and local authorities - all of which, it said, shared blame for recent instability. A Cambodian court on Tuesday ordered the seizure of the headquarters of the main opposition party, pending the payment of damages to Prime Minister Hun Sen, the latest blow to the dissolved opposition Cambodia National Rescue Party.
Banking
Cambodia and the banking sector: Q&A with BRED Bank Khmer Times 19th Mar 2018
BRED Bank (Cambodia) Plc., a subsidiary of the well-established French bank BRED Banque Populaire, recently celebrated its first year anniversary in the kingdom. Khmer Times’ Sok Chan sits down with Guillaume Perdon, CEO, and Sopha Min, deputy CEO, to discuss the bank’s achievements and goals. KT: What have been the biggest achievements for your institution after one year of operations in the kingdom? Mr Perdon: After one year, our achievements are very promising. We opened in March 2017, offering a full range of products and services for all types of customers. Today, we have individual consumers, premium accounts, small and medium-sized enterprises and large corporations doing business with us. What is also promising, of course, is that we continue to grow our customer portfolio. Today, we have more than 1,000 clients in total, with 150 key corporate customers among them. Our total loan portfolio after one year of operations is about $75 million. We can say we had a very fast and efficient start and now we want to develop our network of branch offices, as most of our operations to date have taken place in our headquarters in Phnom Penh.
Customs
Program aimed at speeding up export launched Phnom Penh Post 22nd Mar 2018
The Commerce Ministry officially launched a program yesterday giving the authority to issue certificate of origin licences to four provinces along the Thai border, potentially expediting the export process for agricultural businesses in the region. The previous system required applicants who wish to apply for a certificate of origin (CO), which is required for legal exports of agricultural products, to come to Phnom Penh to receive their certification from the Ministry of Commerce in the capital. That process was labourious and often ignored by farmers and exporters, who instead used brokers to ship goods across the border through informal channels.
Cambodia launches halal certification and label Asia Customs & Trade 14th Mar 2018
Cambodia has begun offering its first ever halal certification and label for producers and exporters of foodstuff as well as for restaurant businesses. An initiative of the Ministry of Commerce and the Highest Council for Islamic Religious Affairs of Cambodia, the country’s halal label has been launched as part of a bid to make Cambodian products more competitive in the international market, especially among the world’s estimated 1.9 billion Muslim consumers. “Now we have our own halal logo which we have been developing for about eight years. We call on companies to apply for this label to help promote it in Cambodia and abroad,” said Mao Thora, secretary of state for the Ministry of Commerce.
Defense & Security
Vietnam-Cambodia Joint Patrols Highlight Defense Ties The Diplomat 26th Mar 2018
Last week, Vietnam and Cambodia held the 50th iteration of their joint maritime patrols. The interaction offered a glimpse into one manifestation of the the defense realm of the bilateral relationship amid a series of ongoing activities for 2018. Vietnam and Cambodia share an important defense relationship as part of their wider diplomatic ties. Most notably, Vietnam provides the Royal Cambodian Armed Forces (RCAF) with military equipment, infrastructure, and training, while both countries have also looked to manage more sensitive areas of the relationship such as outstanding issues over their shared 700-mile long border and managing illegal fishing in surrounding waters. The past few years have seen an uptick in activity in defense ties due to a range of factors, including symbolic markers for the relationship such as commemoration of the 50th anniversary of the establishment of diplomatic ties in 2017 to Cambodia’s preparations for elections in July 2018 and Vietnam’s ongoing concerns about China’s deepening influence in Cambodia, where Hanoi also is a major actor that other discussions occurred.
Military Drills a Sign Cambodia Warming to China, Cooling to US VOA 18th Mar 2018
Hundreds of Cambodian and Chinese soldiers began a 15-day joint military exercise in central Cambodia this week, involving live-fire rocket launches from helicopters, mock tank battles, and anti-terrorism and emergency relief training. China will reportedly also donate tanks and armored personnel carriers on the occasion. The unprecedented show of military cooperation, dubbed “Golden Dragon,” is the latest sign that the long-ruling Cambodian People’s Party (CPP) is relying on Beijing to further shore up its control of the country through growing diplomatic, economic and military support, according to analysts.
E-Payments
Put Cambodia’s people first in harnessing power of fintech Phnom Penh Post 27th Mar 2018
Cambodia might not come to mind when shaping a list of fintech hubs, but across Southeast Asia, the benefits of addressing the digital divide and of harnessing the power of fintech should be clear-cut. Taken together, both of these steps can increase the level of access to capital and financial inclusion – critical needs in developing Asia. Yet, from blockchain to cryptocurrencies such as bitcoin and Ethereum, as well as initial coin offerings or ICOs that allocate “tokens” as a new means of crowdfunding capital, the language and disruptions buffeting the mainstream banking and financial services industry can seem overwhelming. Broadly defined, “fintech” – shorthand for the technologies that are delivering innovations as well as new challenges and opportunities to the once staid banking and finance sectors – is also enabling the rise of new companies and transformative businesses.
Economics
Everything you need to know about investing in Cambodia Southeast Asia Globe Magazine 27th Mar 2018
For the past two decades, Cambodia has experienced rapid economic growth. Broad access to global markets and an economic policy that openly courts foreign investment means the country’s economy is expected to continue growing. The local currency, the Khmer Riel (KHR), was introduced in 1980. However, the Kingdom is a partially-dollarized economy, with 80% of deposits and credits in the country’s banks in US dollars. One dollar is equal to roughly KHR4,000. Commercial transactions up to $10,000 may be made freely between residents and nonresidents, provided they are made through an authorized bank. Transfers exceeding $10,000 must be declared to the National Bank of Cambodia prior to the transfer. Everything But Arms (EBA): Guarantees Cambodia, as a Least Developed Country (LDC), duty-free access to the European Union for exports of all products, except arms and ammunition.
Cambodia’s democracy, economy at risk: report Phnom Penh Post 27th Mar 2018
Cambodia has become more autocratic and its government’s claim of stable economic development rests on uncertain basis, according to a comprehensive new report. The Bertelsmann Stiftung’s Transformation Index (BTI), published on Thursday, claims that the quality of Cambodia’s democracy, market economy and governance performance has deteriorated since its 2016 report. The biennial index assesses transitioning countries and ranks Cambodia 103rd out of 129, with a score of 4 out of 10. Though the latest report only covers events through January 2017 – before a widespread crackdown on the political opposition – the report’s authors still found that the “government drastically increased repressive measures against critics of the government”.
Investment in Cambodia nearly doubles in 2017 Phnom Penh Post 7th Mar 2018
The remarks came at a Cambodia-China Business Forum in Phnom Penh, organised by the UN’s Industrial Development Organization, which brought more than 50 Chinese business delegates from 20 companies to Cambodia today to promote further investment. “In five straight years, from 2013 to 2017, China was Cambodia’s largest foreign direct investor, with investment capital of $5.3 billion, or about $1 billion annually,” said Nut Unvoanra, deputy secretary general of the Cambodia Investment Board at the CDC. “[Chinese’s investment] has been growing and will continue to grow in Cambodia in many sectors such as banking, industry and infrastructure,” he added. In 2016, China surpassed Cambodia itself to become the largest source of investment capital in the Kingdom, according to figures from the CDC.
Energy
Cambodia on course to have all villages electrified by 2020 Khmer Times 9th Mar 2018
The Ministry of Mines and Energy announced that 88 percent of villages nationwide will be electrified by the end of the year, setting the government on its way to achieve its goal of connecting every village in the country to the national grid by 2020. According to Victor Jona, director-general of the electricity department, by the end of 2018, 75 percent of all households will enjoy access to power. “By December last year, 81.5 percent of all villages had access to electricity, and we are aiming for 88 percent before the year ends,” said Mr Jona. “By 2020, we will achieve our target of 100 percent.
Cambodia grants new licence for Apsara oilfield Khmer Times 8th Mar 2018
With the kingdom still waiting to produce its first drop of crude oil, a new exploration agreement in the Apsara oilfield signed yesterday could open the way for another milestone deal in Cambodia’s extractive industry. Speaking during the final day of a convention of the Ministry of Mines and Energy yesterday, Minister Suy Sem revealed that it has given a green light to a Chinese Canadian venture to conduct feasibility studies on Apsara offshore oilfield’s Block D. The move is only the first step to a possible extraction agreement in the future, said Cheap Sour, director-general of the petroleum department, who added that negotiations between the parties are ongoing.
Investment in extractive industry worth 1.3 billion Khmer Times 7th Mar 2018
Foreign direct investment (FDI) in the extractive industry, including some projects expected to be approved before the end of the year, now equals $1.3 billion, making it one of the most valuable economic sectors in the kingdom, according to data from the Ministry of Mines and Energy. “Investment projects that have been approved already or will be approved this year for mining and oil extraction amount to $1.3 billion,” said Minister of Mines and Energy Suy Sem speaking during a ministry meeting yesterday. “This investment will boost the sector, making it one of the biggest in the kingdom for 2018-2019.” Yos Monirath, ministry spokesman, said most investment is going towards oil extraction, with only two big projects in mining, representing a comparably small investment.
Financial Services
Gov't denies rumours of national cryptocurrency Phnom Penh Post 6th Mar 2018
Government officials today shot down rumours that Cambodia would be issuing its own national cryptocurrency, despite international media coverage and a high-profile government official’s plan to attend an event organized by the company responsible for the claims. A firm called Entapay issued a press release on March 2 announcing the Asean Blockchain Summit would be held at the Sokha Hotel in Phnom Penh tomorrow. The press release says that “following Venezuela's lead, other countries have been trying to issue legal digital tender, including Cambodia”, and announces deputy prime minister Men Sam An as the event’s keynote speaker.
Food & Agriculture
Cambodia launches Halal certification Khmer Times 7th Mar 2018
The official logo that will be carried by products that are certified halal. A halal certification created by the Cambodian government is now available for companies that produce or sell food items in the kingdom. “Now we have our own halal logo which we have been developing for about 8 years. We call on companies to apply for this label to help promote it in Cambodian and abroad,” said Mao Thora, Secretary of State for the Ministry of Commerce. Mr Thora was speaking at a workshop on overseeing and standarising halal certifications for Cambodian restaurants and butchers. “Having our own halal logo means that companies will no longer need to use halal certifications from other countries for their products,” he said. Applications will be handled by the secretariat of the Cambodian halal logo steering committee in conjunction with a technical team, who will evaluate each product to check if they meet the required standards.
US sends first soybean shipment to Cambodia Phnom Penh Post 6th Mar 2018
The US sent its first shipment of food-grade soybeans to Cambodia last week, exporting a total of 14 tonnes to both Cambodia and Myanmar to be processed in the receiving countries, according to US media reports. The shipments were sent to soy milk and tofu companies in the Kingdom, potentially opening up a long-term relationship between the US and Cambodian-based soy companies, according to a report from US-based American Ag Radio Network. Hean Vanhan, director general at the Agriculture Ministry’s General Directorate, said he was unaware of the shipment and did not know which Cambodia-based processing companies were receiving the beans, but added the move as a positive one for the country’s economy.
Police stop transport of illegal logs Phnom Penh Post 26th Mar 2018
Stung Treng Provincial Military Police stopped six vans transporting timber illegally on Friday night, but were unable to catch any of the drivers, according to police. Uy Kvai, deputy director of the crime office at the Stung Treng Provincial Military Police base, said the vans were carrying second-grade timber, commonly used for building houses, through Stung Treng district’s Samaki commune.
Agriculture Ministry calls out abattoir monopoly Phnom Penh Post 23rd Mar 2018
The Ministry of Agriculture published a circular on Thursday accusing the slaughterhouse industry of running a “conspiracy” and “cartel” to fix prices and monopolise the market amid a “lack of enforcement” from local authorities. The document, signed by Agriculture Minister Veng Sokhon and dated February 15, instructs ministry officials to take a number of measures to ensure fair competition in the slaughterhouse marketplace, including breaking up monopolies and facilitating small-scale farmers in slaughtering their own stock. Sen Sovann, director-general of the Agriculture Ministry’s Department of Animal Health and Production, said yesterday that the ministry had found the cartel to be an obstacle for free and fair competition, as well as a cause of higher meat prices.
Health & Life Sciences
Progress on UN SDGs limited in some areas Phnom Penh Post 13th Mar 2018
Despite making moderate progress, Cambodia needs to step up its efforts in nutrition, sanitation and ending domestic violence in order to reach its UN Sustainable Development Goals, according to a new report from Unicef. The global report, released this week, ranks Cambodia a middling 86th out of 146 countries, estimating that there are about 2.2 million Cambodian children, or 38.4 percent, living in poverty. That is slightly higher than the worldwide average of 37 percent, with the global goal of lowering that figure to 18 percent by 2030. Cambodia was deemed to be “on track” for things like child mortality rates and reducing HIV infections in young people, but needs to “accelerate” its efforts to reach goals related to health and girls’ rights.
Lymphatic Filariasis has been eliminated in Cambodia BMC 7th Mar 2018
On the 10th October 2017, a ceremony was held at the WHO regional office in Manila, The Philippines, to celebrate the elimination of lymphatic filariasis (LF) in Cambodia. It is an enormous achievement by the Cambodian health system which has been recognized across the world. Here, the authors of a new research article published in Infectious Diseases of Poverty tell us about this momentous occasion. Lymphatic filariasis (LF) is a neglected tropical disease (NTD) caused by nematodes (roundworms) and indirectly transmitted from human to human by mosquitoes.The roundworms live and develop in the blood and lymphatic system of humans where they may block the free circulation of lymph liquids.
Major study to address under-diagnosis of TB among children Phnom Penh Post 6th Mar 2018
Despite the high prevalence of tuberculosis in Cambodia, fewer than 7,000 childhood cases were reported in 2017, a statistic researchers believe to be an underestimate, and one they hope to correct with a massive new project. Laurence Borand, with the Pasteur Institute of Cambodia, said the Kingdom is one of seven countries that will take part in a four-year, multi-agency project that will screen about 77,000 children, 12,600 of them in Cambodia. The project seeks to reduce childhood mortality from tuberculosis. “The outcome of this research project is a simple [and] effective tuberculosis diagnostic approach for children,” Borand wrote in an email.
Emergencies only: agreement reached on speedy crossing to Thailand for medical transfers Phnom Penh Post 6th Mar 2018
Officials in Cambodia and Thailand have inked an agreement to open a new border crossing that will help speed up the transfer of patients seeking emergency treatment. The new checkpoint is scheduled to open in November.
ICT
Cryptocurrencies continue to operate in a grey area Phnom Penh Post 28th Mar 2018
Cambodian enthusiasts for bitcoin and other digital currencies are pushing ahead with their development and adoption despite efforts by the government and central bank to block the trading of cryptocurrencies while supporting the underlying technology. In Mean, founder of the Khmer Crypto Foundation, a local association of over 100 local cryptocurrency investors and enthusiasts, said he must tread carefully because the legality of cryptocurrencies in Cambodia is not entirely clear. The government has refused to officially recognise cryptocurrencies and has taken steps to prevent Cambodians from trading decentralised digital coins such as bitcoin, ethereum and litecoin, though it has not explicitly outlawed people from owning them. The Securities and Exchange Commission (SECC) has warned citizens to be cautious of the risks associated with trading or investing in cryptocurrencies in the absence of a regulatory framework. The National Bank of Cambodia (NBC) has taken a firmer stance, issuing a directive in December that bans all banks and microfinance institutions from trading or advertising cryptocurrencies. As a result, many of these financial institutions prevent customers from using their accounts to buy or sell digital coins or tokens.
Mobile payment apps dethroning cash Phnom Penh Post 28th Mar 2018
At an outlet of Tous les Jours bakery, Heng Souny approaches the cashier with a tray of baked goods and her smartphone in hand. Instead of reaching into her purse for cash, the 25-year-old real estate agent scans the QR code on the cashier’s point-of-sale terminal and enters her PIN number to pay for the goods using Pi Pay. Souny said she initially tried the digital payment smartphone app because of the generous discounts – initially as much as 50 percent – offered by merchants. Those discounts have decreased as the app gains traction, but the speed and convenience of using digital cash has kept her hooked. “I use it often because I think this payment method is faster and more convenient than using cash,” she said. “Now, every time I buy something or eat at a restaurant, I always ask the cashier if they use Pi Pay as a payment platform.” Souny is one of tens of thousands of Cambodians using their smartphones not just to make calls and browse the internet, but also to pay for the goods and services they purchase on a regular basis. While the Kingdom is a staunch cash-based society, mobile payment platforms are quickly gaining traction and providing a new channel to promote financial inclusion.
Science and technology must be prioritised: PM Khmer Times 16th Mar 2018
Prime Minister Hun Sen on Thursday emphasized the importance of science and technology for the future economic development of the nation and called for public-private partnerships to build the infrastructure needed to make the transition to a more technology-based economy and society. Speaking at a conference yesterday, the premiere said building a knowledge and skill-based economy was key to boosting industrial productivity and maintaining current growth rates. With 30 percent of the country’s population under the age of 30, Cambodia finds itself in a unique position to fully adopt new technologies and integrate them into its industry, Mr Hun Sen stressed. The conference, dubbed ‘2018 Cambodia Outlook Conference on Science and Technology for Industrialization, Economic Growth and Development’, was organized by Cambodia Development Resource Institute (CDRI) and ANZ Royal Bank.
Uncertainty over future of cryptocurrencies in Cambodia Phnom Penh Post 14th Mar 2018
On Wednesday, Deputy Prime Minister Men Sam An stood in front of a conference hall in Phnom Penh to give the opening remarks for the launch of a new cryptocurrency, Entapay, encouraging the company to follow relevant laws in Cambodia. But crypto enthusiasts in the Kingdom say that’s easier said than done. Cryptocurrency exists in a legal “grey area”, according to several entrepreneurs pursuing crypto projects in the Kingdom, with the government rejecting the currencies themselves while embracing their underlying technology. In Mean is the lead developer of the Khmer Crypto Foundation, and has also created his own cryptocurrency called KHCoin. While Mean admitted to feeling on-edge about operating in an atmosphere of regulatory uncertainty, he said he understood the hesitation on the part of the National Bank of Cambodia (NBC) to engage with cryptocurrency. The new technology is often plagued by scams, wild fluctuations in value and under-regulation.
Cambodia to be a digital economy by 2023 Khmer Times 7th Mar 2018
To increase competitiveness and enrich the lives of its citizens, Cambodia aims to have transitioned into a predominantly digital economy by 2023, according to an official from the Ministry of Posts and Telecommunications. “By 2023, we plan to transform the country into a digital economy in which most citizens will be adept at using digital tools and able to use advanced technology to enhance their personal and professional lives,” said Kan Channmeta, Secretary of State at the ministry. He said the government aims to complete the transition into a digital economy in the next five years to keep up with fellow Asean member countries. However, to achieve its goal, Cambodia needs to up its citizens’ prowess in information of communication technology (ICT). “The ministry will focus on developing students’ abilities in key areas within ICT, which will accelerate the development of the technology sector.
Funding is the biggest hurdle for Cambodia’s technology startups Phnom Penh Post 6th Mar 2018
Funding for the tech startup scene in Cambodia has been growing, but challenges persist for young entrepreneurs hoping to attract investment for their nascent businesses. Investment in the startup ecosystem in Cambodia has been dominated for several years by small amounts of seed funding, usually amounting to a few thousand dollars, awarded via small-scale competitions. Recently, however, large funds have begun to focus on promoting Cambodian startups with heftier financial contributions. Yet many local startup founders say they are still finding it difficult to attract investment. Melanie Mossard, director of community at startup business incubator ImpactHub, said that a lack of funding is one of the greatest challenges that tech startups face in the Kingdom. “We see three main challenges for startups in Cambodia . . . access to network, technical business skills and access to funding,” she said. “There are very few [funding] options available in Cambodia, but I am optimistic about the future.”
Cambodia Creates Award to Encourage Women to Get Into Technology VOA 5th Mar 2018
The government has launched a new award for tech-savvy women who actively contribute to the growth of the technology sector in Cambodia. Women working in technology or developing community projects using innovative tech solutions can nominate themselves for the Cambodian Women in Tech award, which will be given out on March 7. The award was created to try and narrow the gender divide in the technology sector. Tan Sodany, Cambodia’s director of information technology policy, said: “We want more engagement from women in the tech sector, and we want more contributions from them to develop the tech sector. It also allows Cambodia to step forward and become a digital economy.” Tan Eng Kachnith, an engineering student at Phnom Penh’s Institute of Technology, said that her parents had not been happy when she told them she wanted to pursue a technical subject at university.
Information Ministry claims press freedom supporters are ‘killing’ democracy Phnom Penh Post 5th Mar 2018
Cambodia's Ministry of Information has chalked up 2017 as a “huge success for the government”, saying supporters of jailed journalists were “killing” democracy and the closure of multiple media outlets was necessary. During a speech in Phnom Penh on Friday morning presenting the ministry’s annual report, Information Minister Khieu Kanharith maintained that Cambodia was “on the right track” during a year of heightened scrutiny, which saw the jailing of opposition leader Kem Sokha and the forcible dissolution of his party. Kanharith praised local media coverage of those events, saying: “Our pride is that we have our media contributing in strengthening democracy." “As we are facing the high tension in events, we must acknowledge and check the gaps [in the ministry’s] surveillance and control, and also react on time to prevent the incidents from taking place,” he said.
Infrastructure
Why Cambodia's beach town Sihanoukville could be the region's next big tourist hub Southeast Asia Globe Magazine 27th Mar 2018
The beach town of Sihanoukville has great tourism potential, but industry experts say proper planning and infrastructure must come first. “I think Sihanoukville will be the biggest city in Cambodia in 20 years,” says Christophe Forsinetti, chief operating officer for real estate investment firm JSM Indochina. “Look: available land, cheap labour, cheap construction costs, an international airport, Chinese proximity and even the rest of Asia. I mean, that’s a no-brainer.” The beachside town has the potential to be the next Cancun – a Mexican tourism hub for travellers from around the world that was once an impoverished and unsafe town filled with marshes and mosquitoes before it was transformed by development, he says. If it’s designed and developed with intent, Sihanoukville could be the equivalent destination for travellers from East Asia seeking a temperate climate on holiday.
Belt and Road could bring risks for Cambodia debt Phnom Penh Post 27th Mar 2018
China’s financing of Belt and Road Initiative projects in Cambodia could lead to increased debt distress, according to a recent analysis, though the Kingdom’s low overall debt makes it unlikely to default in the near future. According to a policy paper released by the Center for Global Development, Cambodia will likely see a significant rise in debt to China as a result of the Belt and Road Initiative. At the end of 2016, Cambodia’s total public and publicly guaranteed debt was $6.5 billion, a relatively low percent of the country’s $20 billion GDP. About half of that $6.5 billion debt was owed to China, according to the report. Miguel Chanco, lead Southeast Asia analyst for the Economist Intelligence Unit (EIU), noted that the report was accurate regarding the risks to Cambodia, but also said any prediction of future debt levels was complicated by the overall lack of transparency of BRI projects.
Cambodia eyes water transport body Khmer Times 7th Mar 2018
In a bid to address the high cost of logistics in the country, Cambodia plans to apply for membership at the Japanese branch of the World Association for Waterborne Transport Infrastructure (Pianc-Japan), a move that would allow the country to gain expertise in infrastructure development and the management of ports and waterways.
Laos
Laos, Cambodia Strengthen Cooperation On Labour, Social Welfare KPL: Lao News Agency 13th Mar 2018
(KPL) Minister of Labour and Social Welfare Khampheng Xaysompheng has signed with his Cambodian counterpart Vong Soth a Memorandum of Understanding on the cooperation between the Ministry of Labour and Social Welfare of Laos and the Ministry of Social Affairs, Veterans and Youth Rehabilitation of Cambodia. The signed MoU aims to enhance the cooperation, exchange of technical lessons and experiences, especially on labour, social security, social welfares between the two ministries.
Market Regulation
Cambodia Tax Chief: Comply or be Fined & Possibly Shunned AEC News Today 27th Mar 2018
Attendees at a seminar in Phnom Penh last week ahead of the March 31 closing of the annual tax return filing period have been told to comply with Cambodia’s tax law or face steep fines when caught. The stark message was delivered by deputy director general of Cambodia’s General Department of Taxation (GDT), Heng Soknang, at the National Tax School where accountants, bookkeepers, and those responsible for completing annual tax returns for mall or medium-sized enterprises (SMEs) had gathered to learn of the most recent changes to Cambodia’s tax law. In a blunt keynote speech Mr Heng said “if you comply, there is no fine”, however, for those who don’t, high penalties await those found to be cheating, he said.
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