Cambodia's GDP was downgraded by ADB to 5.3% for 2023

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CSX index down 0.34%, PWSA, GTI, PPAP, and CGSM lead losses On September 21, 2023, the CSX index decreased by 0.34% to 459.9 points. PWSA, GTI, PPAP, and CGSM all experienced declines of 0.54%, 2.30%, 0.14%, and 0.80%, respectively. There haven't been any changes to PAS, ABC, or MJQE. PPSP and PAS, on the other hand, saw increases of 0.46% and 0.33%, respectively. On the growth board, DBDE increased by 0.47% while JSL shrank by 3.17%. To 50,556 shares, or KHR 399 million, the trading volume fell by 36.7% from the closing volume the day before. (Source: YSC Research)

Economy and Industry

Cambodia's GDP was downgraded by ADB to 5.3% for 2023 The Asian Development Bank (ADB) has revised Cambodia's GDP forecast to 5.3% in the Asian Development Outlook (ADO) September 2023 from 5.5% in the ODA April 2023. The report shows that Cambodia's exports of garments, footwear, and travel goods have fallen by 18.6% in the first half of 2023, partly offset by a 22.9% increase in exports of other manufactures, such as vehicle parts, solar panels, and furniture. Imports of construction materials dropped by 6.3%, reflecting a weak recovery in construction. The projection for industry output growth in 2023 is cut to 4.8% from 5.8% in 2024. The report also notes that milled rice exports have risen 12.4% in the first half of 2023. The service sector has grown faster than expected in the first half of the year, with the service sector expected to ease to 6.5% in 2024. However, the report also notes that overall merchandise exports have fallen marginally due to a threefold rise in gold exports in the first half of 2023. (Source: Khmer Times)

From January to August, Cambodian exports to India increased by 39% Cambodia's exports to India reached $161.35 million in January to August 2023, a 38.7% increase compared to the same period last year. India accounted for one percent of Cambodia's total exports, while exports to China, Vietnam, and the US declined by 16.8% and 4.8%, respectively. However, Cambodia's imports from India declined by 15.1% to $145.56 million, giving the Kingdom a surplus of $15.78 million in bilateral trade for the period. The Bilateral Investment treaty is nearing finalization, which will act as a catalyst for more Indian investment in Cambodia. The two countries are also establishing direct air connectivity, a road link, and the Duty-Free Tariff Preference Scheme. The Mekong-Ganga Cooperation (MGC) has also improved ties between the two countries, with 78 projects completed and 27 under implementation. India has extended several lines of credit to CLMV countries worth about $1.76 billion for various projects. (Source: Khmer Times)

Power tariffs for factories are reduced by up to 20% The Ministry of Mines and Energy (MME) in Cambodia has decided to reduce electricity prices by 10-20% for industrial and agricultural consumers. The move was requested by Prime Minister Hun Manet to help factories gain competitiveness by lowering production costs. Consumers will receive a 10% discount on the monthly average energy tariff and a 20% discount on the average monthly energy consumption. The move will benefit around 21,000 factories and enterprises for three months until the end of the year. However, this tariff relief will not apply to government institutions, commercial activities, or households, as they are already subsidized by Electricite du Cambodge and the government. (Source: Khmer Times)

Corporate News

Parent company of Air Asia, Capital A unit signs a contract to launch an MRO operation in Cambodia Capital A's subsidiary, Asia Digital Engineering, has partnered with Sivilai Asia Co Ltd to establish a maintenance, repair and overhaul (MRO) business in Cambodia. ADE will invest 60% in ADE Cambodia Co Ltd, while Sivilai Asia will contribute 40%. ADE will inject up to US$1.2 million in two tranches, while ADE will use internal funds for its equity investment. Sivilai Asia is a consultancy management firm aiming to operate hospitality businesses in Cambodia. Capital A has incorporated a joint venture company, AirAsia (Cambodia) Co Ltd, to start AirAsia branded airlines in Cambodia, starting operation in November 2023. The subscription exercise is expected to be completed in the fourth quarter of 2023. (Source: Khmer Times)

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