Cambodia records remarkable recovery in FDI

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Stock Market

CSX index inches down on March 11, 2024 On March 11, 2024, the CSX index closed at 462.91 points, marking a modest decrease of 0.05% compared to the previous day's close. Notable fluctuations were observed across the main board, with CGSM (+0.39%) showing gains, while PEPC (-2.22%), PPAP (-1.02%), MJQE (-0.48%), PPSP (-0.47%), PAS (-0.32%), PWSA (-0.27%), and ABC (-0.21%) experienced declines. GTI, however, maintained its opening prices. On the growth board, DBDE and JSL declined by 0.94% and 1.00%, respectively. The day's trading activity saw 37,246 shares exchanged, with a cumulative trading value totaling KHR 237 million. (Source: YSC Research)

Economy and Industry

Cambodia records remarkable recovery in FDI According to the Council for the Development of Cambodia (CDC), Cambodia received $1.3 billion in the first two month of the year, representing a 500% increase compared to the same period in 2023. China accounted for 39% of total FDI investments, with a focus on sectors such as industry, infrastructure, and agriculture. The substantial increase in FDI is attributed to stronger investor confidence, driven by Cambodia's stability, peace, and advantageous trade agreements. The government's proactive measures in addressing private sector challenges and its commitment to promoting job creation and livelihood improvement further contribute to the favorable investment climate. In 2023, Cambodia attracted $4.92 billion in fixed-asset investment, showcasing a 22% increase from the previous year. (Source: Khmer Times)

Cambodia-Malaysia bilateral trade surges In January 2024, Malaysia secured its position as Cambodia's 15th-largest trading partner, witnessing a remarkable 35.2% surge in bilateral trade of $46.41 million compared to $34.32 million in January 2023, according to the General Department of Customs and Excise (GDCE). Malaysian exports to Cambodia reached $35.32 million, up by 25.6%, while Cambodian exports to Malaysia marked a notable 83.1% increase, valued at $10.49 million. Despite the trade imbalance resulting in a deficit of approximately $25.43 million for Cambodia, experts highlight the potential for expanded trade cooperation, especially as both nations are members of the Regional Comprehensive Economic Partnership (RCEP). The recent memorandum of understanding (MoU) signed between the National Bank of Cambodia and Bank Negara Malaysia aims to enhance cross-border payments and foster economic growth through QR code-based transactions. (Source: Phnom Penh Post)

Cambodia sustains robust trade growth despite global challenges  Pen Sovicheat, Spokesperson for the Ministry of Commerce, revealed that Cambodia's trade volume with the international community keeps growing despite global conflicts and diminishing purchasing power. According to Mr. Sovicheat, In January 2024, Cambodia exported commodities worth nearly $2 billion to its main trading partners, marking a significant 27% increase from the same period in 2023. China remains Cambodia's primary trading partner, with trade volume exceeding $1.1 billion in 2023. Mr. Sovicheat urged companies to enhance their production capacities to strengthen exports and for companies to enhance high-quality production and techniques to meet market demand. Due to a loss to some trade preferences, the country still lack products for exports to meet market demand in RCEP countries, especially in South Korea and China. Finally, Mr. Sovicheat noted that the conflict in the Red Sea could indirectly affect fuel prices which would impact production and other industries (Source: Phnom Penh Post)

Corporate News

Bancassurance partnerships thrive in Cambodia In Cambodia, 42% of all insurance sales are conducted via banks; direct sales by insurers constitute 24%, while the remaining sales are facilitated by insurance agents, corporate brokers and other entities. Industry estimates indicate that major life insurers in Cambodia, such as Prudential, Manulife, and Forte Life Insurance, leverage bancassurance channel for significant market presence. ACLEDA and Prudential's partnership has produced more than 200,000 customers and approved over $14 million in claim. The majority of bancassurance products are bundled with the ban's loan offerings. The insurance regulator aims to increase insurance penetration to 5.5% by 2030, emphasizing the pivotal role of banks as distribution partners for insurers in achieving this goal. (Source: Khmer Times)

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