Phnom Penh and Takeo residents have higher savings compared to other parts of Cambodia

Economy and Industry

Phnom Penh and Takeo residents have higher savings compared to other parts of Cambodia A recent study conducted by the Cambodia Microfinance Association (CMA) and Micro-Credit Ratings International Limited (M-Cril) has identified Phnom Penh as having the highest access to formal savings in Cambodia, with 69% of its population holding a bank account. Following closely are provinces like Takeo (41%), Kandal (37%), and Kampong Thom (34%). However, the study also highlighted a decline in savings accessibility as one moves further from the capital, with Battambang recording the lowest percentage of households with at least one savings account. Deposit-taking microfinance institutions (MDIs) were found to be particularly active in Kampong Thom and Takeo, where 17% of households have MDI accounts. The study also revealed that 48% of adults in Cambodia have access to at least one form of formal financial service, with a higher percentage of women accessing these services compared to men. Additionally, the study pointed to improvements in living standards for Cambodians, including advancements in education, poverty reduction, elderly care, and growth in household assets. (Source: Khmer Times)

Chinese supply chain shifts to sustain FDI growth Chinese companies are likely to increase their manufacturing-based foreign direct investment (FDI) in Cambodia as major supply chain shifts reshape Southeast Asia. The China+1 strategy, where businesses establish additional manufacturing bases outside of mainland China to reduce supply chain risks, is set to benefit Southeast Asian nations and India over the next decade. Escalating costs in China, including higher wages and material expenses, are driving this relocation of supply chains to more cost-effective regions. Industrial land prices in China have soared to double those in some Southeast Asian countries, further increasing production costs. Southeast Asia, with its robust economic fundamentals, ample labor force, and competitive production costs, is emerging as an attractive alternative. The ongoing geopolitical tensions between the US and China are accelerating this trend, making Cambodia a prime destination for manufacturing investment. The Cambodian government has shown its commitment to attracting such investments through large-scale infrastructure projects, like the Funan Techno Canal (FTC), aimed at bolstering the country's appeal to global manufacturers. (Source: Khmer Times)

Direct flights between Turkey and Cambodia under consideration Turkish Airlines is exploring the possibility of launching direct flights between Turkey and Cambodia, aiming to strengthen tourism, trade, and investment links between the two nations. During a visit to Cambodia, airline representatives held discussions on the feasibility of initiating direct air services. Chhay Sivlin, President of the Cambodia Tourism Association, met with the delegation in Phnom Penh and highlighted Cambodia's growing tourism industry and its strategic position as a gateway to Southeast Asia. The Turkish Airlines team also visited the under-construction Techno International Airport in Kandal province, which is set to enhance Cambodia's air connectivity and support increased passenger and cargo traffic. Ülkü Kocaefe, Turkey's Ambassador to Cambodia, confirmed that Turkish Airlines plans to expand its services to Cambodia in the near future. Establishing a direct flight route would reduce travel time, improve accessibility for business and leisure travelers, and boost trade, investment, and economic cooperation between the two countries. (Source: Khmer Times)

Corporate News

UK university launches first campus in Cambodia De Montfort University has inaugurated its first campus in Cambodia, marking a significant milestone in enhancing the country's human resources. The grand opening ceremony, presided over by Prime Minister Hun Manet, celebrated the university's choice of Cambodia as its first Southeast Asian campus. The Prime Minister expressed pride in the progress of Cambodia's education sector and reaffirmed the Royal Government's dedication to educational development. De Montfort's presence is expected to elevate the competitiveness of higher education in the country, adding substantial value to its academic landscape. The university acknowledges the crucial role of education in Cambodia's development and aligns with the government's efforts to improve quality, expand access, and foster internationalization. UK Ambassador to Cambodia, Dominic Williams, highlighted that the university will equip students with skills vital for Cambodia's growth, strengthen ties between the UK and Cambodia's higher education sectors, and contribute to global progress. (Source: Khmer Times)

Stock Market

CSX index sees modest gains with mixed stock performance on August 9, 2024 On August 9, 2024, the CSX Index closed at 414.9 points, marking a 0.42% increase from the previous day. Notable gains were seen with CGSM (+0.83%), MJQE (+0.49%), PWSA (+0.29%), and ABC (+0.27%), while declines were observed in PPSP (-1.69%), PPAP (-0.53%), PEPC (-0.40%), and GTI (-0.27%). Stocks PAS remained unchanged. On the growth board, DBDE and JSL closed at their opening price. The total trading volume for the day was 50,731 shares, with a cumulative trading value of KHR 241 million. (Source: YSC Research)

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