| Regional Affairs
Cambodia: Hun Sen Draws First Blood The Diplomat 4th Nov 2015
The ruling Cambodian People’s Party (CPP) has drawn first blood in what promises to be an ugly and drawn-out election campaign after Prime Minister Hun Sen took an unusual step and enlisted the support of the senior military in a nasty crackdown on opposition dissent. Gen. Kun Kim demanded the removal of key opposition figure Kem Sokha from his parliamentary position, and got it after the politician’s wife was terrorized by 200 to 300 men on motorbikes throwing rocks at their family home in a well-documented, six-hour ordeal. Then two MPs from the Cambodian National Rescue Party (CNRP) were dragged from their cars outside of Parliament and bashed just one hour after a military-sponsored anti-opposition rally was staged with Gen. Kun Kim petitioning his demands “for the sake of national security.” The military intervention made unwanted headlines around the world. In China, Cambodia’s most generous benefactor, Xinhua was reporting a rise in political tensions, quoting Chheang Vannarith, Chairman of the Cambodian Institute for Strategic Studies, as saying the country was on the verge of a political crisis. “Political tension between the two main political parties is going to increase, and political polarization is rising which in turn leads to political and social instability,” he said. Kem Sokha’s daughter and CNRP spokeswoman Monovithya Kem said many of the party’s senior figures were now in hiding and the ousting of her father last Friday as the president of the National Assembly was a violation of the Cambodian constitution.
National Affairs
A Chat With Cambodia's Commerce Minister Chanthol Sun--On Making Business Easier Forbes 2nd Dec 2015
Cambodian Commerce Minister CHANTHOL SUN can seem like a blast of sunshine in a region of dark, backroom dealing. A freewheeling proponent of free trade and a booster of international commerce agreements, he’s dedicated to streamlining business regulations, training the workforce and taking Cambodia online. Foreign investors view Sun, 59, as Cambodia’s most Western-minded official, which is no surprise. He left the war-torn country as a teenager in 1973 and spent two decades in the U.S. He washed dishes to finance English lessons, then worked for General Electric GE +3.33% for 16 years, eventually as country manager for Thailand. After the peace process he returned to Cambodia in 1994 to help set up the Council for the Development of Cambodia. Since then he’s operated his own business and spent three years back in the States, at Wharton and at Harvard, where he earned a master’s in public administration. At first a member of the opposition party, he served in two cabinet-level posts after his party joined a coalition government formed by Prime Minister Hun Sen. He joined Hun Sen’s party in 2009 and after hotly contested 2013 elections, the long-ruling despot responded to the strong showing by reform candidates by tapping Sun to replace a longtime crony as commerce minister.
U.S.-Cambodia Competitiveness and Growth Dialogue U.S. Department of State 1st Dec 2015
The inaugural U.S. - Cambodia Competitiveness and Growth Dialogue took place on November 30 in Washington, DC. As part of this bilateral meeting, an inter-ministerial delegation of Cambodian officials met with interagency counterparts from the Department of State, USAID, Department of Treasury, and USTR. The bilateral dialogue included discussions on potential areas of cooperation in economic engagement, business, and development.
Modernising with the times: SME growth through public and private support PPP 30th Nov 2015
It is no secret that for the majority of small and medium enterprises (SMEs), the lack of accessible capital has hindered growth and innovation. As a result, the SME sector – often called the backbone of every economy – has been falling by the wayside in Cambodia. According to a census conducted in 2011 there were 530,000 enterprises and about 99 per cent of them were SMEs. The Post’s Dit Sokthy met with Oknha Te Taing Por, president of the Federation of Associations of Small and Medium Enterprises of Cambodia (FASMEC), to speak about the state and development of the SME sector, it
EU passes resolution supporting Rainsy PPP 27th Nov 2015
Cambodia National Rescue Party officials yesterday fanned out across the country to call for calm amongst grassroots members, as the European Parliament passed a resolution demanding the government revoke a two-year prison term levelled against opposition leader Sam Rainsy, who remains abroad. Splitting into three teams, the lawmakers visited several provinces as part of a four-day national tour to discuss the party’s strategy after a tumultuous month. Since October 26 – when two opposition lawmakers were bashed outside the National Assembly by men who emerged from a pro-Cambodian People’s Party rally – the CNRP has seen its leader, Sam Rainsy, booted from parliament and slapped with an arrest warrant, and his deputy Kem Sokha ousted as the assembly’s first vice president.
Kingdom shows narrow but strong FDI growth PPP 27th Nov 2015
Foreign direct investment flows continued to see strong growth across the 10-member ASEAN bloc in 2014, with most countries in the Lower Mekong region reporting higher levels of inflows given their rising infrastructure needs and manufacturing activities, according to a new report jointly produced by ASEAN Secretariat and UNCTAD. The ASEAN Investment Report 2015 found that while FDI flows to ASEAN were up 16 per cent to $136 billion in 2014, Cambodia, Laos, Myanmar and Vietnam (CLMV) – grouped together because of their lower, relative economic development to other ASEAN members – saw a 3 per cent dip in foreign direct investment (FDI). The report attributed this decline to a sharp drop in Myanmar’s investment inflows. Total FDI inflows to the CLMV region were $12.78 billion in 2014, with Cambodia recording a solid $1.7 billion in FDI, up from $1.2 billion a year earlier, the report said. It projected that with its low labour costs, rapid economic growth and an improving investment environment this progress would continue in 2015.
Cambodian Court Orders Arrest of Opposition Leader Sam Rainsy WSJ 13th Nov 2015
A Cambodian court on Friday ordered the arrest of opposition leader Sam Rainsy in connection with a seven-year-old defamation case, and his party accused Prime Minister Hun Sen of being behind the move to gain the upper hand in their ongoing political fight. It is not clear if Mr. Rainsy will actually be arrested since he has parliamentary immunity due to his status as a lawmaker. He is currently on a trip to Japan and South Korea and is scheduled to return Nov. 16. Rainsy was ordered to be arrested in connection with a defamation and incitement case brought by Foreign Minister Hor Namhong in 2008. In a speech, Mr. Rainsy had accused Mr. Namhong of colluding with the Khmer Rouge while being held as a prisoner by the radical group. The Phnom Penh municipal court convicted Mr. Rainsy and sentenced him to two years in jail. Mr. Rainsy appealed but lost in 2013. The conviction was never enforced and he continued to live freely in Cambodia, serving as the leader of his party in Parliament. According to Friday’s arrest warrant, Mr. Namhong’s lawyer, Kar Savuth, requested that the verdict be enforced. In issuing the warrant, the court ordered “all public forces to search for and arrest” Mr. Rainsy.
Setting the right price for investors PPP 13th Nov 2015
Subscription to the initial public offering of Phnom Penh Autonomous Port (PPAP) opened yesterday. The capital’s port operator aims to raise $5.2 million by floating a 20 per cent stake on the Cambodian stock exchange in December, becoming the third company to list on the exchange. The Post’s Cam McGrath sat down with Han Kyung Tae, CEO of Yuanta Securities (Cambodia), the underwriter of the IPO, to discuss the valuation of the PPAP and its bookbuild results.
Arrest warrant issued for Cambodian opposition leader Sam Rainsy BBC 13th Nov 2015
A Cambodian court has issued an arrest warrant for opposition leader Sam Rainsy over a conviction for defamation in 2011. It was issued after Cambodian Prime Minister Hun Sen threatened Mr Rainsy with legal action for saying the ruling party would "derail" elections in 2018. Hun Sen has ruled for more than 30 years and is known for tough tactics. Political tensions have been rising in Cambodia despite a truce between the two politicians last year. Mr Rainsy said during a visit to Japan earlier this week that, in the wake of the historic Myanmar election, it was imperative the international community did not allow Hun Sen's Cambodian People's Party (CPP) to delay elections. Mr Rainsy is now in South Korea. In a response posted to his Facebook page, Hun Sen said: "I cannot keep calm because of this insult by the son of a traitor."
UN rapporteur visits Kingdom PPP 11th Nov 2015
A top United Nations human rights official who has slammed Cambodian government legislation in the past was in the Kingdom for an “unofficial” visit on Saturday and Sunday, during which he discussed key rights issues with various civil society groups. Maina Kiai, the UN special rapporteur on freedom of assembly and association, met with members of Cambodian youth organisations and representatives of the evictees from Boeung Kak Lake, among others, during his two-day visit, according to a statement from rights group Adhoc. “Mr Kiai repeatedly emphasised that the right to freedom of assembly and association are the pillars to a full and true enjoyment of every individual’s human rights,” the statement reads. In July, Kiai criticised Cambodia’s law on non-governmental organisations following its passage for allowing authorities to withdraw recognition of politically unfavourable associations, calling it a “clear violation of international law”.
Looking to Burma, CNRP Pines for Similar Fate Cambodia Daily 11th Nov 2015
As U.N. peacekeepers oversaw elections in Cambodia at a cost of some $1.6 billion two decades ago, Burma’s army junta was settling into a new era of autocracy. Yet the apparent blooming of democracy in Burma over the weekend has left many Cambodians jealously glancing west. In a sweeping victory by Burmese opposition leader Aung San Suu Kyi—to go along with a 1990 win that saw her forced under house arrest—the ballot had the trappings of the Cambodian opposition’s own dreams for 2018. “Democracy has prevailed in Burma. Aung San Suu Kyi won a landslide,” CNRP lawmaker Mu Sochua wrote on her Facebook page after the release of initial ballot results on Monday afternoon. “Ballots not bullets. May all living dictators take this as a lesson.” If Ms. Sochua’s message was not clear enough, CNRP leader Sam Rainsy was more effusive in his comparison of the situation in Burma and his own plans for Cambodia, posting images of himself meeting Ms. Suu Kyi in Rangoon in 1996 and again in 2013.
As Ruling CPP Drives Wedge, CNRP Has Few Options Cambodia Daily 10th Nov 2015
Prime Minister Hun Sen has never had to rely on overwhelming popular support to maintain his grip on power, counting instead on his ruling party’s watertight unity at elections as his political opponents divided into a squabbling and defeated mass. Winning more than half of the vote for the first and only time in 2008, when the CPP trounced an opposition as divided as ever, Mr. Hun Sen easily offset electoral weaknesses by leading the most disciplined party in the game. So when two lawmakers from the CNRP, an unprecedented opposition union that has so far been immune to schism, were beaten last month—just days before CNRP Vice President Kem Sokha was ousted as a parliamentary leader—queries about the motive pointed in one direction. “This move is intended to divide the opposition as well as to demoralize our supporters,” CNRP deputy public affairs director Kem Monovithya, who is also Mr. Sokha’s daughter, said of her father’s ouster and the assaults in an interview with The Diplomat. “But it is up to us, the opposition, whether or not we allow these tactics to work, and so far we have not allowed it to work. Inside the party, we still have strong unity,” Ms. Monovithya said.
Prime Minister Warns Against Change on Independence Day Cambodia Daily 10th Nov 2015
As thousands of students and government officials gathered in the capital Monday to mark 62 years since Cambodia declared its independence from France, Prime Minister Hun Sen used the occasion to warn citizens against the dangers of change. In a message posted to his personal Facebook page, the prime minister wrote of the successes of then-Prince Norodom Sihanouk in developing the country in the years following independence, and the disastrous period that followed his overthrow at the hands of Lon Nol. “All Cambodians remember the greatest achievements of the hero late King Norodom Sihanouk, who struggled and sacrificed all things to demand independence from France,” Mr. Hun Sen said. “Unfortunately, on March 18, 1970, Lon Nol became head of state in a coup d’etat and after that he led Cambodia to fall into the killing fields. This experience is an example that reminds us of the suffering that was the result of changing the leader through the desire to get power,” he said. “This time, Cambodia must avoid that bad and dangerous path,” he added. “Especially the Cambodian People’s Party, of which I am president and prime minister, vows to protect the Constitution, protect the king and protect peace for the people.”
PM’s son threatens lawsuits over attack allegations PPP 9th Nov 2015
In an apparent attempt to distance himself from the savage beating of two opposition party lawmakers last month, Hun Sen’s son and ruling Cambodian People’s Party (CPP) lawmaker Hun Many threatened legal action against any individuals linking him to the incident. Many, who published his warning on Facebook on Saturday, was ostensibly responding to images circulating online showing Many alongside suspected assailants of the two Cambodian National Rescue Party lawmakers, who still remain hospitalised in Bangkok. The statement, which claimed to respond to “allegations which are exaggerations and cast blame to affect my [Many’s] honour and dignity”, said that the decision to take “legal measures” against alleged detractors was taken in consultation with Many’s youth group, the Union of Youth Federations of Cambodia (UYFC). Many goes on to demand an “absolute public apology from the committing person” before signing off with a self-referential appeal to justice: “on behalf of lawmakers, I hate the violation of the law.” Meanwhile political analyst Ou Virak, questioned the manoeuvre by the Kampong Speu lawmaker, predicting that it would only spur further speculation about a connection to the violence committed as a pro-CPP protest was dispersing. “I would welcome that he [Many] clarify [his involvement with the protest] without resorting to legal threats,” Virak said, adding that “in a country like Cambodia where the court is not independent, a legal threat is as real a threat as could be, and it is very chilling for many people”.
Hun Sen warns builders to obey construction laws PPP 9th Nov 2015
Prime Minister Hun Sen yesterday took to Facebook to warn companies against “colluding with bad officials” to illegally construct buildings on public parks and sidewalks, ordering those that have already done so to dismantle them immediately. The premier cited a recent inspection of Phnom Penh casino NagaWorld. He said NagaCorp Ltd’s expansion of the casino was violating a public sidewalk and land owned by the Buddhist Institute. Following his inspection last week, Naga was ordered to pull apart some of the structure and to delay construction at the site. But Hun Sen yesterday said the problem extended well beyond Naga, as he called on companies, ministries and local governments to ensure that building permits were being strictly adhered to. “If the building is built on a public place, the authorities and involved ministries have to take responsibility. For the private company, it has to stick to the law and it must not construct the building beyond what the law permits by colluding with bad officials, or else they will be punished,” he wrote. City Hall spokesman Long Dimanche said the municipality only has power over sites smaller than 3,000 square metres. For bigger constructions, he said it was up to the Ministry of Land Management, Urban Planning and Construction to enforce the law.
Firms required to re-register online PPP 9th Nov 2015
More than 50,000 companies registered with the Ministry of Commerce will be required to re-register when the ministry rolls out its online registration system next month, a government official said yesterday. Om Dararith, director of the commercial registration department at the Ministry of Commerce, said the new online system will be launched on December 7, and aims to cut through the notorious red tape involved in starting a business in Cambodia. “The new system will be faster and easier, save time and cut the unofficial fees associated with current manual system,” he said. “Registration is free and will take only 45 minutes.” More than 40,000 companies and 10,000 small enterprises have registered in Cambodia using the existing paper-based system – of which only a small portion of the data is available online through the Ministry of Commerce’s website. According to Dararith, the companies will be asked to re-register once the new automated system goes live. He said the ministry lacks the resources to input the data, while it wants to give companies a chance to verify the information and to correct any errors in the existing records. “We haven’t issued a prakas or announcement yet, but as a policy, we plan to ask companies that registered manually to re-register online,” he said. “We will give them one year to register online, but we won’t force them.”
Is Cambodia Ready for the AEC? ASEAN Brief 9th Nov 2015
Cambodia’s integration into the ASEAN Economic Community is fast approaching amid much speculation on whether the country is ready to reach regional expectations, standards and demands. In a game of hide and seek, kids hide themselves in wardrobes, under beds and behind chairs while another one of them counts to 100. When that child has finished, she shouts, “ready or not, here I come”, before setting off in pursuit of her friends. This children’s party game has parallels with the current state of Cambodia as it gears up for the advent of the ASEAN Economic Community (AEC) at the end of the year. “There’s a lot to do and not much time to do it, but I think that point is not lost on the government,” says Grant Knuckey, CEO of ANZ Royal Cambodia. “The court system, industrial policy, customs and educational systems are all experiencing clear positive change and reform.” The question is whether these changes will be implemented in time for a smooth transition into a regional economic and trading bloc of 600 million people over the next few months with free movement of goods, services, investment, skilled labour and capital.
Hun Sen Says Lawmakers Hurled Insults Before Beatings Cambodia Daily 6th Nov 2015
Prime Minister Hun Sen said on Thursday that the soldiers who violently attacked two CNRP lawmakers last week were only reacting to racial insults, while Interior Ministry spokesman Khieu Sopheak said he would have “used a gun” against the lawmakers. Mr. Hun Sen has been accused by opposition leader Sam Rainsy and human rights groups of arranging the violent October 26 attack on Nhay Chamroeun and Kong Saphea at a pro-government protest in front of the National Assembly in retaliation for demonstrations that met the premier during recent visits to Paris and New York.
Political Tension Threatens Economy, Investors Warn Khmer Times 4th Nov 2015
Escalating tension between the country’s two largest political parties is putting investment and expansion plans of both domestic and foreign companies at risk, and could see growth slow this year, investors, exporters and economists say. Political uncertainty will cause investors to think twice before they expand businesses here and may even lead to production cuts, David Vann, managing director of Bower Group Asia’s Cambodia office, told Khmer Times. Last week, two lawmakers from the Cambodia National Rescue Party (CNRP) were beaten outside of the National Assembly. The recent deterioration of the political situation has made foreign and local investors jittery about what may come next, Mr. Vann said. The harsh political rhetoric from both sides sending disturbing signals to the business community, he added. “The attack on parliamentarians and the resulting political row really scare investors,” Mr. Vann said. “Investors may now take a wait-and-see position. They may want to reassess the situation and wait possibly for six months to see how the political situation would turn out,” he added.
CPP Loyalists Leading Lawmaker Assault Probe Cambodia Daily 3rd Nov 2015
Last week’s protest in front of the National Assembly had all the hallmarks of an event organized by the CPP to make a point. It was promoted beforehand by Prime Minister Hun Sen as a response to opposition demonstrations that had angered him. Many of the men protesting against deputy opposition leader Kem Sokha had military haircuts and wore pieces of red cloth—a longtime signal of CPP allegiance during episodes of violence against opponents. Some were even known security forces in plain clothes. Finally, as the event came to an end, several dozen protesters dragged two opposition lawmakers out of their cars and beat them bloody. Opposition leader Sam Rainsy was quick to accuse Prime Minister Hun Sen of orchestrating the attacks, while civil society groups noted that police posted at the protest did not try to stop the beatings. Human Rights Watch (HRW) described the event as typical of CPP attacks over the years.
Water Festival cancellation brings drought for capital’s vendors PPP 3rd Nov 2015
The abrupt cancellation of this year’s Water Festival has had an economic fallout on small businesses that see the annual event as a windfall for their marketing and sales efforts, and had already invested in promotional materials. The cancellation marks the fourth time in five years that the government has pulled the plug on the three-day annual celebration, which traditionally draws hundreds of thousands of people to the capital for its boat races on the Tonle Sap river. Prime Minister Hun Sen signed a government directive on Saturday stating that the cancellation was due to the river’s low water level and drought concerns. Pundits, however, suspect the decision was aimed at preventing opposition parties from mobilising the expected flood of visitors to their advantage. The festival was held last year for the first time since 2010, when a stampede on the final day of festivities killed more than 350 people and brought about a suspension of the event. While the crowds were thin last year, organisers and businesses hoped this year’s Water Festival, scheduled for November 24 to 26, would be a commercial bonanza.
‘Pitfalls ahead’ for web freedom, report finds PPP 3rd Nov 2015
While Cambodia lacks a “rigorous, systematic approach to internet censorship”, new programs regulating telecommunications, online expression and cybercrime threaten the relative freedom it currently enjoys, according to a new report. The Freedom on the Net 2015 report, released on Friday by American watchdog organisation Freedom House, assigned the Kingdom a ranking of “partly free” – the same status it has held for the past two years – based on the criteria of “obstacles to access”, “limits on content” and “violations of user rights”. Cambodia was ranked 38th out of the 65 countries surveyed, with a score of 48 out of 100, with zero being the best possible score. The report highlights a still-unapproved telecommunications law drafted in 2014 that would impose sweeping controls on the sector for the purposes of “effective security, national stability and public order”, potentially leaving the door open for censorship. Last year also saw the announcement of a Ministry of Information program aimed at restricting the online publishing of “immoral content”. When asked yesterday as to whether any content had been targeted on these grounds, Ministry of Information spokesman Ouk Kimseng stated, “We don’t have any restrictions at all.”
Customs
PM urges US to drop tariffs The Phnom Penh Post 23rd Nov 2015
Prime Minister Hun Sen urged policymakers in Washington to expand its preferential treatment of goods imported from least-developed countries (LDCs) including Cambodia by increasing the amount of goods permitted duty- and quota-free access to the US market. “Cambodia would like to request that the US provide Generalized System of Preferences to at least 97 per cent of its total commodities, with tariff exemptions and quota-free [access], to LDC member states, in accordance with the previous agreement under the WTO framework,” Hun Sen said during the 3rd ASEAN-US Summit in Kuala Lumpur on Saturday. The prime minister’s request refers to a 2005 ministerial meeting of the World Trade Organisation (WTO) in which developing nations pledged to provide extend duty-free and quota-free status to “at least 97 per cent of products originating from LDCs, defined at the tariff line level”. “The request is just to remind rich countries such as the US to implement the [WTO] agreement under a broad framework, which may not have been legal binding,” said economist Srey Chanthy.
Defense & Security
Cambodia Boosts Defense Budget for 2016 The Diplomat 3rd Dec 2015
Cambodia has raised its defense budget by over 17 percent for 2016, according to a bill approved by the country’s legislature amid an opposition boycott. Under the $4.6 billion national budget for 2016 approved by Cambodia’s National Assembly, defense spending was set at $383 million, more than a 17 percent increase from the 2015 figure and around 2 percent of GDP. Combined with the spending for internal security of $286.7 million, IHS Jane’s notes that the total defense and security allocation represents a year-on-year increase of 10 percent. The hike continues a pattern of successive increases in military spending since Cambodia’s heated border confrontation with Thailand over the disputed Preah Vihear temple back in 2008. According to data from the renowned Stockholm International Peace Research Institute (SIPRI), Cambodia’s military spending rose more than 56 percent between 2010 and 2014 alone.
Military Budget up 8 Years in Row Defense Studies 2nd Dec 2015
For the eighth consecutive year, Cambodia’s defence spending is set to grow in 2016 after ruling party lawmakers yesterday approved the year’s budget. The Ministry of National Defence will get some $382 million, a 17.3 per cent rise on this year’s defense expenditure. According to the Australian Defence Force’s Defence Economic Trends 2015 report, the Kingdom’s military budget increased yearly from just $100 million in 2008 to about $277 million in 2014. Jon Grevatt, Asia-Pacific industry reporter for defence analyst IHS Jane’s, said much of the allocated budget would go to personnel costs for the armed forces, often criticised for a lack of transparency in how it spends its cash. “This would include pensions, if indeed pensions are included in the defence budget, military salaries and operations,” Grevatt said. “I can’t see how in a $382 million budget there could be any money for anything other than the most basic procurement requirements i.e. ammunition and perhaps some firearms.”
US, Cambodia Navies Launch Joint Military Exercise The Diplomat 16th Nov 2015
On November 16, the United States and Cambodia launched an annual military exercise with an opening ceremony held at the Royal Cambodian Ream Navy Base in Sihanoukville, Cambodia. The sixth iteration of the annual Cooperation Afloat Readiness and Training (CARAT) Cambodia exercise is designed to address shared maritime security priorities, develop relationships, and enhance cooperation between the two navies. It is part of a series of bilateral naval exercises conducted by the U.S. Navy with partners now involving nine countries in South and Southeast Asia – Bangladesh, Brunei, Cambodia, Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Timor-Leste (See: “US Eyes Expanded Military Exercises with ASEAN Navies”). The Royal Cambodian Navy (RCN) is one of the newer CARAT partners in the exercise series, which began back in 1995.
China Pledges New Military Aid to Cambodia The Diplomat 10th Nov 2015
China and Cambodia agreed to boost their military ties following a meeting between their defense ministers on November 6 in the Cambodian capital Phnom Penh. According to Cambodian Defense Minister Tea Banh in remarks after consultations with his visiting Chinese counterpart Chang Wanquan, China agreed to provide Cambodia with further military assistance to boost the capabilities of the Royal Cambodian Armed Forces. Though specifics of the assistance remain unclear, Banh, who is also a deputy prime minister, indicated that it includes telecommunications and radio equipment from China to improve Cambodia’s ability to communicate across all command headquarters. It also reportedly involves continued Chinese assistance in training and constructing military academies as well as increased exercises and exchanges. Banh also reportedly confirmed that Cambodia had received a man-portable surface-to-air missile system (MANPADS) from China but said Phnom Penh was “not yet satisfied” with it. He also indicated that Cambodia was looking for longer-range hardware beyond the shoulder-fired surface missiles that China had already delivered. No further details were given, however, about the types of equipment the Southeast Asian state is seeking.
China supplies Cambodia with anti-aircraft hardware in new military aid Reuters 7th Nov 2015
China have provided Cambodia with shoulder-fired anti-aircraft missiles, Cambodia's defence minister said on Friday, as the two countries agreed on new military aid to boost close ties. Cambodia is one of China's most stalwart allies in Asia, routinely backing China's position at international forums in a region where China and United States vie for influence. "The visit of the defence minister of the People's Republic of China has achieved good results," Defence Minister Tea Banh told reporters after a signing ceremony with his visiting Chinese counterpart, Chang Wanquan.
Energy
Climate Change Curriculum Khmer Times 1st Dec 2015
Since January 2011, about 15,000 farming families and 33 secondary schools in Siem Reap and Tbaung Khmum provinces have begun participating in climate change and disaster mitigation education and training programs. The pilot program, which ends next month, is aimed at preparing Cambodia for more floods and droughts. While most climate change mitigation programs are initiated by the national government, this pilot program focuses on localized solutions to climate change complications.
The night the lights went out PPP 28th Nov 2015
Underscoring Cambodia’s heavy dependence on imported electricity, the lights went out not just in Phnom Penh but across provinces nationwide on Thursday, an unprecedented blackout that Prime Minister Hun Sen said was caused by an electrical fault in neighbouring Vietnam. Between about 10pm and 11pm, Phnom Penh, Siem Reap, Battambang, Preah Sihanouk and several other provinces lost power, just as revellers in the capital were enjoying the last hours of Water Festival. “As the government’s leader, I am very sorry and would like to confirm to citizens that the power outage is not the sign of a terrorist attack or any other incident besides the electrical outage,” the premier said, in a speech broadcast on his Facebook soon after the blackout. Hun Sen said though Cambodia has a contract allowing it to buy 200 megawatts from Vietnam, it was currently using just 150 megawatts of that to power Phnom Penn and other provinces. “When the electricity in Vietnam was disconnected, it was disconnected here too,” he said, adding that about 50 per cent of imported power was consumed by the capital. According to state energy provider Electricite du Cambodge (EdC) president Keo Rattanak, the blackout also affected Banteay Meanchey, Kampong Chhnang, Pursat, Kampong Cham, Kampot and Kampong Thom provinces.
Russia to help Cambodia build capacity for nuclear power Reuters 26th Nov 2015
Russia will help Cambodia work towards building a nuclear power plant under an agreement the two countries signed this week, said Sergei Kirienko, the head of state nuclear firm Rosatom. Cambodia depends heavily on imported fuel and power. Electricity in the country is among the most expensive in Southeast Asia and a common source of complaint from investors. "The Cambodian government is mulling, in future, a nuclear power station construction," Kirienko told reporters on Wednesday when asked about the agreement. Cambodian energy officials declined to comment on the deal on Thursday. The agreement was signed during a visit by Russian Prime Minister Dmitry Medvedev to Cambodia this week. His visit was the first to Cambodia by a senior Russian politician since 1986. Under the terms of the agreement, Russia will provide expertise, research and training to Cambodia. "Perhaps, it is better to begin with a research reactor and a research center in Cambodia," Kirienko said, noting that Russia has concluded a similar agreement with Bolivia. "All emerging economies are now facing a key issue: for a normal development they need a reliable, cheap and guaranteed source of energy," Kirienko said.
Activists Want Action on Koh Kong Dredging Khmer Times 26th Nov 2015
Anti-dredging activists have called on the Mines and Energy Ministry to investigate what they say are irregularities in sand dredging operations in Koh Kong province, including what they say is an unclear relationship between some officials and the dredging company. While most people celebrated the Water Festival by rivers and lakes with festivities and boat races, more than two dozen activists from the Youth Resource Development Program Organization (YRDP) and the environmental organization Mother Nature tried to investigate dredging operations on Wednesday, but say they were blocked from taking photos or getting close by the dredging operators and local officials. YRDP’s Ny Chetra told Khmer Times that whenever the group tried to look into dredging activities it appeared local officials were trying to block them and protect the companies. “The Koh Kong provincial office of Mines and Energy said the dredging boat at Koah Sarlau Island is not illegal because they have a license from the ministry,” he said, “but we found they have a fake license. “They still can do this because they have powerful officers behind them. Their dredging operations are protected by the local authorities.” He said the ministry said the operations had little impact on the environment, but the groups wanted to investigate for themselves. He said that on Wednesday, one dredging boat and local officials prevented the team from taking photos or asking questions, between Tatay village and Andoung Tuek commune.
Russia Eager to Discuss Selling Cambodia Energy Technologies Sputnik News 24th Nov 2015
Russian Prime Minister Dmitry Medvedev arrived in the Cambodian capital on Sunday where he is expected to attend the signing of several bilateral cooperation deals. On Tuesday, Medvedev met with his Cambodian counterpart Hun Sen. "There is readiness to supply [Cambodia] with lifting, drilling and energy equipment, and introduce new Russian technologies and equipment," the official memo said. Both ministers indicated that a visit by a senior Russian government official to Cambodia was long overdue. The previous trip to this Southeast Asia country was made by Russia’s then Foreign Minister Eduard Shevarnadze in 1986. The ministers noted that a lot had changed since the 1980s. Prime Minister Hun Sen said that by reenergizing relations with Cambodia Russia, one of the world powers, "gives Cambodian people a chance." Medvedev started his Cambodia visit with a trip to the ancient Angkor Wat temple. Later today, he will attend the signing of a batch of bilateral cooperation deals, including on curbing terrorism financing and money laundering.
Kris Energy progresses with Gulf of Thailand discovery Energy Voice 23rd Nov 2015
Indepedent producer Kris Energy has received Singapore government approval to produce from the Rossukon oil discovery in the Gulf of Thailand. The production area application was approved by agency responsible for Thailand’s upstream petroleum industry. The Rossukon series of discoveries are located in the G6/48 licence over the Karawake Basin to the north of the G10/48 licence, where the KrisEnergy-operated Wassana oil field commenced production in August. Cayman-registered Kris has drilled two exploration wells and two intentional sidetrack wells in the Rossukon area in the first half of 2015. Each well encountered oil and gas, adding to volumes from the original Rossukon discovery made in 2009. Chris Gibson-Robinson, director exploration and production, said: “We have six licences in the Gulf of Thailand, four of which are now in production following the start-up of the Wassana and Nong Yao fields this year. “The approval of the Rossukon PAA is a step closer to getting our fifth field into development and production and underpins our strategy to make the Gulf of Thailand a core area in the KrisEnergy portfolio.” KrisEnergy is also the operator of Block A offshore Cambodia where it is developing the Apsara oil field.
Korean Firm Plans JV Expressway to Sihanoukville Khmer Times 22nd Nov 2015
Cambodia’s Global CAM Project Development Plc on Friday signed a memorandum of understanding (MoU) with Korea’s Green Eco Energy Co. Ltd. to build a high-speed expressway from Phnom Penh to Sihanoukville, executives from the two firms said. The deal is worth more than $536 million. Construction of the 275-kilometer-long, 20-meter-wide expressway along National Road 3 could begin in the middle of next year and take three years to complete, said Chhin Son, general manager of Global CAM. “Cambodia needs more infrastructure. This is the first expressway in Cambodia and it will spur development,” said Mr. Son. “After finishing the technical studies and survey on social impacts, both companies will release a construction plan for approval by the government,” Mr. Son said. The two companies were granted a license from government to invest in the expressway. It gives them a 35-year concession to collect tolls before turning it over to the government. “Cambodian citizens and the government will benefit from this expressway as it will increase the number of tourists [to Sihanoukville], improve transportation and save time for road users,” Mr. Son said. Lim Won Dae, CEO of Chansol Engineering and Green Eco Energy, said the expressway will help turn Cambodia into a developed country like South Korea. It will be the company’s first investment in infrastructure in Cambodia, he said. Nou Savath, secretary of state at the Ministry of Public Works and Transportation, welcomed the expressway and encouraged more domestic and foreign companies to invest in infrastructure.
Cambodia’s energy policy out of balance Phnom Penh Post 12th Nov 2015
Expensive and unreliable electricity continues to weigh down Cambodia’s ranking on the UN-accredited World Energy Council’s annual Energy Trilemma Index, according to a report released yesterday. The Kingdom ranked a low 115 out of 130 countries on the annual index, which assesses countries according to how well they manage the trade-offs between three competing dimensions of energy policy: energy security, energy equity and environmental sustainability. The index reflects the challenges that countries face in developing a sustainable energy policy, with balance scores given as letter grades. An A grade and low ranking is given to top performers, while a D grade and high ranking is assigned to poor performers. Cambodia maintained its sub-par CDD balance score on the 2015 index, seeing last year’s gain in energy security – a measure of a country’s ability to meet its current and projected energy demand – reversed to rank 121st overall. The Kingdom’s rank in energy equity – a measure of the accessibility and affordability of energy across the population – edged down to 116th. It also lost ground and ranked 70th on environmental sustainability, which scores the use of renewable or low-carbon forms of energy. Cambodia relies heavily on imported fuel and electricity for energy security, and costs of electricity are among the highest in the world. The government’s efforts to increase domestic power generation, including new hydropower and coal-burning plants, carry environmental trade-offs.
Eleven Dams a Grave Threat to the Lower Mekong River Basin Chiangrai Times 12th Nov 2015
Experts have warned that the impact of 11 dams could halve fish stocks in Vietnam’s Lower Mekong Basin, raising concerns over food security, reported Straits Times. Addressing the Greater Mekong Forum On Water, Food And Energy in Phnom Penh, experts reportedly warned that the basin could soon face depleting fish stocks, further erosion of the coastline and rising salinity that will make rice fields un-cultivable. A government- funded study by the Vietnam National Mekong Committee estimates the value of fish from the Lower Mekong Basin at $7 billion a year, wrote the newspaper. More than half of that is in Vietnam and Cambodia. The average annual per capita consumption of fish was calculated at 46kg, it said. But with the 11 dams, fish availability is likely to be halved in the coming years, raising uncertainty over food security, experts presenting the study’s findings told attendees at the forum. In recent years, discussions under the umbrella of the Mekong River Commission (MRC) have been heated. In 2011, Cambodia and Vietnam asked for a 10-year moratorium on dam-building by Laos. But beyond a mechanism called “prior consultation”, the MRC is essentially toothless. Laos continued building the 1,285MW Xayabury dam, which is now about 60 per cent complete, and just weeks ago approved another controversial dam at Don Sahong. Laos looks to energy exports to its neighbours, mainly Thailand, to boost its economy. The power and mining sector contributes to 17 per cent of Laos’ GDP and nearly 70 per cent of overall exports.
Cambodia Performs Poorly on Index for Energy Sustainability Cambodia Daily 11th Nov 2015
Cambodia continues to struggle to adopt a balanced approach to its energy needs, according to a report released by the World Energy Council (WEC) today. The U.N.-accredited body ranked Cambodia 115 out of the 130 countries included in its 2015 Energy Trilemma Index, rising two places since last year’s report. According to the WEC’s website, the annual index assesses countries “in terms of their likely ability to provide sustainable energy policies through the 3 dimensions of the energy trilemma”—energy security, energy equity and environmental sustainability. The 2015 index ranked Cambodia 121 in terms of addressing its energy security needs, while placing it at 116 for energy equity, a measure of a country’s ability to provide affordable energy sources to its populace. Heng Pheakdey, chairman of the Enrich Institute, a sustainable development NGO, said yesterday that Cambodia’s reliance on imported fuel was the biggest energy concern. “The issue of energy security in Cambodia is that we are very much reliant on the import of fuel to produce electricity for domestic use, so this makes Cambodia very vulnerable to the price of oil,” he said. Mr. Pheakdey added that while government efforts to develop hydropower dams would help strengthen the country’s domestic energy sector, that approach also had drawbacks.
Financial Services
Central bank urged to cool overheated credit market The Phnom Penh Post 30th Nov 2015
The explosive growth of bank lending in Cambodia has industry insiders concerned that the Kingdom’s credit market is overheating, with some urging the central bank to tighten its reins on lending institutions in order to cool lending and protect the country’s financial sector from potential shocks and downturns. The loan portfolio of the Kingdom’s commercial banks grew 30 per cent in 2014 to reach $9.7 billion by the end of the year, according to the National Bank of Cambodia (NBC). Credit growth ballooned even faster among the nearly 40 microfinance institutions (MFIs) under its purview, with their loan portfolio soaring 56 per cent during the year to surpass the $2 billion mark. The rapid pace of credit growth, which the International Monetary Fund (IMF) forecasts will accelerate over the next three years, led the UN agency to recommend that Cambodia implement prudential measures that increase capital buffers and tame lending.
Cambodians get cash in hand with mobile pay The Phnom Penh Post 30th Nov 2015
Money may talk in Cambodia as audibly as in other countries, but now it also increasingly vibrates, pings and beeps with the Kingdom’s recent boom in mobile payment services. Since the first domestic provider Wing was launched by ANZ Banking Group in 2009, traditional means of moving cash around the Kingdom by road are being abandoned in favour of swifter and safer transfer via the airwaves. “These services are very useful if you want to keep your money secure,” says Pheak, a vendor on Phnom Penh’s Norodom Boulevard who five years ago became one of Wing’s now estimated 4,000 dealers. “When I travel to the provinces, I don’t need to carry my cash with me and members of my family can pick it up anywhere they want.” The cash transfer system pioneered by Wing, now part of the Royal Group, enables customers to send money by simply paying cash at an outlet in exchange for a code which can be texted to an individual or organisation, and then redeemed. Payments can be made in either riel or dollars and are available to Wing’s some 600,000 registered account holders, as well as one-off customers for competitive fees from around $1.50.
Mortgage Lending Surges at Major Banks Khmer Times 26th Nov 2015
As more young and middle-income families seek their own homes, an increasing number are relying on mortgages from banks, and this continues to be reflected in the surge in home loans by the country’s two largest commercial banks so far this year. Acleda Bank saw mortgage lending jump 30 percent in the first 10 months of this year compared with the same period last year, said So Phonnary, its executive vice president and group chief operations officer. Total home loans rose to $167.8 million at the end of October compared with $129.4 million at the end of October last year, according to figures from the bank. Ms. Phonnary attributed the growth to an increase in the number of Acleda branches, population growth, economic expansion and more choices for homebuyers.
BNY Mellon appointed as global custodian for National Bank of Cambodia The Asian Banker 24th Nov 2015
BNY Mellon, a global leader in investment management and investment services, has been appointed by the National Bank of Cambodia (NBC) to manage its growing foreign reserves. BNY Mellon will provide global custody and a suite of fund administration services to NBC as part of this new relationship. National Bank of Cambodia is the nation's central bank as well as the monetary and supervisory authority. With a mission to determine and direct monetary policy, NBC is also the sole issuer of the Khmer riel, the national currency, and hence is responsible to help maintain monetary stability. "After a rigorous selection process, the NBC believes that BNY Mellon's custodian service meets all our stringent criteria and is deemed to be one of the safest custodians available for our foreign reserve's asset," said H.E. Chea Serey, Director General at National Bank of Cambodia. "BNY Mellon is an established bank with a long history of conservative banking, consistently high credit ratings and very specialized asset servicing - strong credentials that give NBC the assurance and conviction that BNY Mellon would be the most suitable global custodian of our foreign reserves."
Cambodia: New investments fuel non-life insurance growth Asia Insurance Review 20th Nov 2015
Gross premiums in Cambodia's non-life insurance industry surged by 20% in the third quarter to more than US$46 million from the corresponding period last year, fuelled by new business investments. Marine, property and fire, and medical insurance are driving the growth, according to a report from the Insurance Association of Cambodia (IAC). Pointing to the increased number of new enterprises in the country, Mr Huy Vatharo, IAC Chairman, said: “The growth of insurance business in this market has so far come from the increase of new businesses across the lines, meaning more new customers have access to insurance.” Property and fire insurance premiums, which account for slightly more than 40% of total insurance premiums, rose by 44.1% or more than US$6 million from about $13.3 million in the third quarter of last year, reported the Phnom Penh Post citing the data.
Securities Exchange Commision discusses derivatives rules The Phnom Penh Post 20th Nov 2015
The Securities Exchange Commission of Cambodia (SECC) officially launched derivatives trading yesterday and held a consultation meeting with financial firms and investors to review a draft prakas on qualified investors in the securities market. Feedback from the public forum will be used to help formulate regulations to be included in the prakas, which will be issued “soon," said SECC director-general Sou Socheat. “After announcing [a plan to introduce] derivatives trading, we received many applications,” he said. “Many companies contacted us. Some are qualified and some are not, and all derivatives traders will be required to have a license.” Derivatives come in many forms, but all are essentially financial contracts between two parties that derive their value from the performance of an underlying asset such as a commodity, index, currency or stock.
Banks See Surge in Deposits Khmer Times 18th Nov 2015
The surge in deposits at commercial banks is accelerating as the per capita gross domestic product rises and trust in the banking system increases, representatives of commercial banks said yesterday. “Rising domestic deposits reflect better living standards, the growth of the banking and finance sector and more trust from people," Heng Thida, head of retail and financial services at CIMB Bank, said yesterday. She made the comments during the launch of the CIMB Preferred Visa platinum credit card. The bank has more than $200 million in deposits, with about 99 percent from Cambodians, she said. Ms. Thida added that since its arrival in Cambodia five years ago, CIMB has accumulated assets of more than $400 million. It plans to inject more capital to meet rising demand for banking services, she said, without disclosing a figure. Leading domestic bank Acleda is also seeing swift growth in domestic deposits, according to its executive vice president So Phonnary. She said that the growth is due to the expansion of banks and microfinance institutions, which has raised awareness about the advantages of keeping cash in banks.
Banks push for more trade in yuan The Phnom Penh Post 6th Nov 2015
With trade between Cambodia and China steadily growing, banking sector players have put out a call to increase facilities for businesses using Chinese currency to pay for imports and exports. Speaking at a workshop organised by the Bank of China, Chen Chang Jiang, CEO at the Bank of China in Phnom Penh, said the use of the yuan in business transactions had progressed steadily since the bank was appointed by the National Bank of Cambodia (NBC) to be a clearing bank for local and cross-border yuan transactions. “The internationalisation of the yuan will not only help China increasingly integrate with the world, but can provide more channels for cross-border investments, trade and financial dealing,” Chen said. He added that the Bank of China’s branch in Phnom Penh had settled 35 million yuan, the equivalent of $5.5 million, in cross-border remittance settlements during the first six months of the year.
Central Bank Encourages Interbank Market Cambodia Daily 6th Nov 2015
Over two years after launching Negotiable Certificates of Deposit (NCDs), a security meant to encourage interbank lending and reduce the role of the state in the financial sector, the National Bank of Cambodia (NBC) announced new measures to catapult the effort on Friday. In late 2013, in a bid to reduce the amount of surplus funds deposited with the NBC, it began issuing NCDs, which can be sold by cash-strapped banks to banks with high liquidity, who can then cash them in with interest upon maturity. In order to encourage movement in the still-stagnant interbank market, the NBC announced in a statement on Friday that the minimum investment to start an NCD would be drastically lowered and fixed-term deposits with the state-run bank would no longer be offered as of November 1. “By closing the fixed deposits (but allow existing ones to reach maturity), we expect to see more investment into NCD,” NBC Director-General Chea Serey said in an email yesterday. “But at the same time we need to make NCD more convenient in term of maturity and face value.”
Food & Agriculture
Tractor tax abolished, but farmers still stuck in a rut PPP 1st Dec 2015
Prime Minister Hun Sen’s announcement on Facebook yesterday that the annual tax on vehicles used by limited-income families, including tractors, would be abolished was met with indifference by small-scale farmers, who said high interest rates on loan were a concern, not the negligible tax assessed on farm vehicles. Dem Sreylim, deputy director of Chamroeun Phal Raingkesey agricultural cooperative in Battambang province, said small-scale farmers would not benefit from the removal of the tax, as very few can afford $30,000 tractors in the first place. “We have 288 members in our cooperative and only one tractor that we rent to farmers,” she said, adding that most farmers use a two-wheeled walking tractor for regular chores. Sreylim said the real burden on small-scale farmers was debt, as most of the farmers had borrowed heavily from microfinance lenders to purchase these single-axle machines, which cost $500 to $1,000. Moreover, the cooperative’s farmers were unable to make the high monthly interest payments as they were struggling to sell their rice paddy to the market.
Gov’t Moves to Boost Farm Output Khmer Times 26th Nov 2015
The government has allocated $20 million to make Cambodian rice and other crops more competitive against imports from neighboring countries, with the three-year project slated to begin next year, officials said. The Ministry of Economy and Finance will work with the Ministry of Agriculture and experts to promote fragrant rice seeds, vegetables and other crops, they said.
Heavy Use of Cambodia’s Natural Resources Has Climate Effects, Experts Say Voice of America 12th Nov 2015
Cambodia may not be an industrialized nation, and therefore not putting as much carbon dioxide into the atmosphere as other countries, but it nevertheless is contributing to climate change through deforestation, experts say.
Slight Dip in Rice Yields ‘Won’t Affect Exports’ Khmer Times 10th Nov 2015
As the harvest of wet-season rice ends this month, a report from the Ministry of Agriculture says the yield will fall slightly below the target but this will not affect exports. Rice will be harvested from about 2.55 million hectares of land, about 99.53 percent of the targeted 2.56 million hectares, the report said, adding that the yield would be about three tons per hectare on average.
Law on Animal Health At the Finish Line Khmer Times 8th Nov 2015
A draft law seven years in the making to regulate and standardize the Kingdom’s animal health regulations is on the verge of reaching parliament after getting approval from the Council of Ministers on Friday. The law is designed to “modernize and standardize [protocols] to protect people’s health, animals’ health, and the environment and prevent communicable diseases from animals and public health,” according to a statement from the Council of Ministers.
Major Surge in Micro Lending, Association says Khmer Times 4th Nov 2015
Lending by microfinance institutions (MFIs) rose about 50 percent at an annualized rate during the first nine months of the year, according to the Cambodia Microfinance Association, which said the surge was sparked by economic stability and an increase in demand from clients wanting to start businesses. The total portfolio of loans among the 40 MFIs and seven NGOs with microfinance projects – which comprise the CMA – rose to $2.7 billion by the end of September from about $1.8 billion during the same period last year, according to a report from the CMA.
Health & Life Sciences
Gov’t urged to step up on HIV funding The Phnom Penh Post 3rd Dec 2015
The Global Fund, provider of the lion’s share of money for Cambodia’s $12 million-a-year HIV treatment and prevention program, has told the government it expects it to begin footing more of the bill itself, a push that is prompting worries among local health-care providers. However, the director of the government’s National Centre for HIV, Ly Peng Sun, said it was unlikely the government would be in a position to take on a significant share of the financial burden. As HIV rates fall to relatively low levels and Cambodia inches toward lower-middle income status, the health sector’s biggest aid donor is apparently reassessing where it puts Cambodia in its order of priorities.
HIV Infection Rate Down But Gov’t Can Do More: Experts The Cambodia Daily 2nd Dec 2015
The rate of HIV infection in Cambodia has decreased in the past year, according to new figures from the National AIDS Authority (NAA), but experts say further work is needed to prevent new infections and increase access to medical treatment. Among people between the ages of 15 and 49, the rate of HIV infection presently stood at 0.6 percent, compared to 0.7 percent last year. There is a need for new awareness campaigns that target young people who do not remember the country’s AIDS epidemic of the late 1990s—when the rate of infection hit 1.7 percent.
Cambodia Misses Goal for Zero Malaria Deaths The Cambodia Daily 19th Nov 2015
Eight people have died of malaria so far this year across the country, according to the government’s latest figures. The deaths mean Cambodia has missed its goal to eliminate fatalities from the mosquito-borne parasite by 2015, though health officials questioned the number—and even the target.
Cambodia makes progress flushing sanitation problems Deutsche Welle 18th Nov 2015
Yet after years of stagnant statistics, Cambodia is becoming known for its achievements. Toilet coverage in rural areas has doubled in the last five years, from 23 to 46 percent, according to the Ministry of Rural Development. The government says its long-term efforts in raising awareness and creating demand led to the success of sanitation marketing. The government is aiming for universal access by 2025, with a mid-term goal of reaching 60 percent by 2018. Last year, the government released a national strategic sanitation plan, and is set to release a national action plan in December.
PM Calls for Enforcement of Baby Formula Ban The Cambodia Daily 4th Nov 2015
Prime Minister Hun Sen has called for stronger enforcement of regulations on the promotion and sale of baby formula, linking a decrease in the number of women who breast-feed to an increase in unlawful and misleading advertising that misrepresents milk substitutes and deceives new mothers. A statement released by the premier ahead of National Nutrition Day, which falls on November 6 and will focus on the importance of breastfeeding, instructs health workers, clinics, and formula companies—many of which are flagrantly violating a government ban on promoting baby formula—to adhere to the law.
ICT
Internet firms to lose licences PPP 24th Nov 2015
Cambodia's telecom regulator will strip the operating permits of more than 30 private companies licensed to provide internet and Voice-over-Internet Protocol (VoIP) services unless they can demonstrate that they are commercially active and operating in accordance with their licensing agreements, a telecom official said yesterday. Im Vutha, director of the regulation and dispute unit at the Telecom Regulator of Cambodia (TRC), said 34 companies holding a total of 42 ISP and VoIP licences have until the end of the month to submit invoices and other details proving that are actively providing services to customers, or lose their licences. “We want to enforce our [regulatory] procedures and push them to demonstrate that they are currently providing services, and to pay their annual tax obligations as well,” Vutha said. He said that according to TRC regulations, in order to purchase or renew a telecom licence investors must deposit $10,000 for an ISP or $50,000 for a VoIP provider. If the operator fails to deliver services within one year the licence is voided and the deposit is forfeited – though the regulation has not been enforced.
Training program boosts electronics skills PPP 12th Nov 2015
A three-year vocational training project aimed at creating employment opportunities in the electronics industry while eliminating electronics waste, or e-waste, wrapped up yesterday, with its organisers calling for more funding in order to continue its training component. The United Nations Industrial Organization (UNIDO) launched the $1.35 million e-waste management project in 2012 with funding from South Korea’s development agency, Korea International Cooperation Agency (KOICA), and electronics giant Samsung Electronics. Sok Chea Hak, national project coordinator of UNIDO, said the public-private partnership provided training to 241 youth and trainers in Phnom Penh, as well as in Battambang, Banteay Meanchey, Siem Reap and Kampong Cham provinces. Beneficiaries received instruction on electronic installation and repair services involving mobile phones, air conditioners, television sets, refrigerators and washing machines. “This project provides job opportunities and business management skills, and enhances knowledge related to the electronics industry,” said Hak. “The trainees gain awareness of e-waste and how it impacts environment and health.”
Preorders strong ahead of iPhone release PPP 11th Nov 2015
A thriving grey market has done little to dampen anticipation for the official launch of the latest iPhone models in Cambodia, and authorised dealers say consumers are lining up to purchase the new smartphone handsets as soon as they become available. Apple Inc released the iPhone 6 and iPhone 6S Plus in a dozen international markets in late September, but the two models will not be officially released in Cambodia until Friday. Unable to wait, some consumers have resorted to purchasing the new smartphone models from grey market dealers, often paying a high premium for “flipped” handsets. Smart, one of two authorised iPhone retailers in the Kingdom, said it has received a barrage of orders for licensed handsets since announcing a pre-order booking process on its Facebook page last week. The option allows Smart subscribers to reserve a handset for purchase on November 13 by putting down a $20 deposit, which is deducted from their account. “We’re receiving a lot of iPhone 6S and 6S Plus pre-orders from customers every day, and the numbers will be incredible like we saw last year,” said Mith Hak, a public relations specialist for Smart.
Cambodia to cancel inactive ISP, VoIP licenses Telecomasia 23rd Nov 2015
Cambodian ISPs and VoIP providers will be required to submit business performance reports by the end of the month or face cancellation of their operating licenses. The Telecom Regulator of Cambodia (TRC) has called on 34 providers to submit their reports to ensure they are in compliance with their license agreements, the Khmer Times reported. An investigation by the regulator has determined that some companies are not fully compliant with their license terms, the report states. Inactive licenses are expected to be cancelled by the regulator to help bring greater clarity to the telecom sector. Some companies have already submitted their reports and therefore have been excluded from the demand.
Manufacturing
All PR wins Cambodia car association pitch PR Week 11th Nov 2015
Cambodia-based All PR has come through a competitive pitch to win the role of PR lead for the country’s leading car dealers association. The Cambodia Automotive Industry Federation is the trade association for authorised dealers of the leading car companies in the country, including Ford, Audi, Chevrolet, BMW, Mercedes and Toyota. It handles any issues in the automotive industry and represents the private sector on government matters. Having consulted five agencies, the federation has selected All PR to drive its communications strategy regarding government relations and raising awareness of road safety. All PR will also help the association regarding its international profile and commitments as part of the ASEAN automotive working group.
Market Regulation
Chair of ASEAN audit board goes to Kingdom PPP 9th Nov 2015
Som Kimsour, the chairwoman of Cambodia’s National Audit Authority, was appointed to chair the ASEAN Supreme Audit Institutions (ASEANSAI), a collaborative body of public sector auditors, during a summit on Thursday in Phnom Penh, according to state media outlet AKP. ASEANSAI was created in 2011 to exchange best practices among the ASEAN member states’ auditing authorities. Indonesia was the first chair, from 2011 to 2013. Future appointments will proceed in alphabetical order. Brunei held the previous chairmanship from 2013 to 2015, and Cambodia’s will last through 2017. Preap Kol, the executive director of Transparency International Cambodia, said it was a good opportunity for Cambodia’s NAA to strengthen its ability to apply international auditing standards and practices and live up to ASEAN member states’ expectations. “The institution would be much better perceived if they publish audit reports on time and make the report publicly available and accessible,” said Kol. “It was a pity that, for the past few years, the NAA failed to do so, which raised a lot of questions.”
Government to revamp porous tax code PPP 6th Nov 2015
The government will scrap its poorly regulated and grossly inefficient estimated-tax regime, which covers mostly small enterprises, and bring all businesses in the Kingdom into the fold of its more-stringent “real” tax regime, leaked documents show. In an unpublished addendum to the 2016 national budget obtained by the Post, the government acknowledged that the estimated-tax regime was a resource hog, requiring 60 per cent of the state’s tax collectors to collect less than 1 per cent of its total tax revenue. “The estimated regime is the place for tax avoidance from the real regime,” the addendum said, noting that the estimated regime contributed just 0.5 per cent of total tax income in the first nine months of 2015. According to the addendum, a decision to abolish the estimated-tax system – the timeframe for which is yet to be announced – was taken to ensure transparency in tax management, as well as “to lighten the burden of taxation on the citizen and farmers”. The estimated-tax regime applies only to sole proprietorships that fall below a certain threshold on revenue from the sale of goods or services, whereas businesses above that threshold and larger corporations are taxed according to the formal regime. The real regime slots businesses into three brackets – small, medium and large taxpayers – based on their annual turnover, with the tax rate for an incorporated entity set at 20 per cent.
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