The government passes a new taxation law draft

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CSX index begins April with a rise of 0.04% The CSX index increased slightly to 493.4 points on April 3, 2023, the first trading day of April. Shares of PWSA, GTI, PPAP, and PPSP all increased by 0.26%, 0.30%, 0.68%, and 0.42%, respectively. On the main board, only the shares of PAS and ABC were unchanged, while PEPC fell by 0.65%. On the growth board, DBDE shares edged up 0.85% to KHR2,370, while JSL shares remained steady. (Source: YSC Research)

Economy and Industry

The government passes a new taxation law draft On Friday, March 31, 2023, the Cambodian government passed a new draft taxation law that is intended to tighten fiscal compliance, increase the favorable investment climate, and promote and enhance the country's business sector. According to the government spokesman Phay Siphan, the new fiscal law was adopted in accordance with the fourth phase of the Rectangular Strategy, the Public Financial Management Reform Program, the Cambodian Digital Economic and Social Policy Framework, and the government's strategy for collecting taxes. The GDT brought in $3.45 billion in revenue last year, surpassing its $2.81 billion annual goal by 22.54% and more than doubling the amount it had forecasted for 2021. The tax collection goal for 2023 has been raised by 26.68% to $3.57 billion, which is just 3.37% more than the revenue obtained in 2022. (Source: Khmer Times)

Chinese and Cambodian central banks talk about settling cross-border transactions in local currency The development of local currency settlement for cross-border trade between the two nations has been explored, according to a statement issued by the National Bank of Cambodia (NBC) on Saturday, April 1, 2023. On the fringes of the Boao Conference for Asia in the Hainan province of South China, discussions between NBC's Deputy Governor Chea Serey and Xuan Changneng, deputy governor of the People's Bank of China, took place. Serey participated in a roundtable discussion on "Financial Infrastructure and Services in the Digital Era" at the Boao Forum alongside other central bank governors, policymakers, and representatives of the private sector. (Source: Khmer Times)

World Bank maintains its 5.2% growth prediction for Cambodia for 2023 The World Bank has kept Cambodia's economic growth rate projection at 5.2% for 2023, although it has downgraded the outlooks for Cambodia's neighbors Vietnam (from 6.7% to 6.3%) and Thailand (4.1% to 3.6%) from its estimations in October 2022. After Vietnam and the Philippines, Cambodia has Southeast Asia's third-fastest growth rate. Although strong, regional economic performance may be hindered this year by sluggish global growth, high commodity prices, and tightening financial conditions brought about by persistent inflation, according to the research. Last but not least, the area is particularly vulnerable to climate risks because of the considerable population and commercial activity along its shores. (Source: Khmer Times)

Corporate News

SERC and Maybank IBG agree to expand the local securities market In light of plans to introduce the Collective Investment Scheme (CIS) market this year, the Securities and Exchange Regulator of Cambodia (SERC) and Malaysia's Maybank Investment Banking Group (Maybank IBG) have maintained their Framework for Cooperation and Technical Assistance for the growth and enhancement of the Kingdom's burgeoning securities market. At a ceremony on March 31 in Phnom Penh, SERC director-general Sou Socheat and Maybank IBG CEO Michael Oh-Lau Chong Jin signed a memorandum of understanding (MoU) to that effect. The MoU, which signifies the continuation of a partnership, will focus on developing the Cambodian capital market and cover topics like derivatives and new products, compliance, risk management, corporate governance, financial and accounting reporting, and the promotion of foreign portfolio investment (FPI), Socheat said at the event. (Source: The Phnom Penh Post)

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