As construction activity increases, steel imports rise

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Stock Market

CSX sees broad sell-off, index down 1.49% On October 25, 2023, the CSX index came to an end of trading at 442.4 points, losing 1.49% from the previous day. There were no gains in any main board stocks today. The biggest losers were CGSM (-1.60%), ABC (-2.06%), PEPC (-2.04%), PPSP (-1.87%), GTI (-1.05%), MJQE (-0.48%), PWSA (-0.28%), and PAS (-0.16%). PPAP closed unchanged from the day before. On the growth board, DBDE fell by 1.40% and DBDE gained 1.73%. There were 205,705 shares traded in all, worth KHR 1,467 million. (Source: YSC Research)

Economy and Industry

As construction activity increases, steel imports rise Cambodia imported over $280 million worth of iron and steel in the first nine months of 2023, representing over 1% of the country's total imports. The country's construction sector has shown some improvement this year, attributed to an uptick in projects approved by the Ministry of Land Management and Urban Planning and regional authorities. However, the sector's recovery has been gradual due to global political and economic uncertainties. The construction sector has faced challenges since 2020, particularly with major projects driven by foreign investors. The reduced number of large-scale projects has led to a diminished demand for steel compared to pre-2020 levels. The construction sector's health is closely tied to global economic trends, and as the world economy expands, there is an anticipated rise in iron and steel imports, correlating with the launch of more significant construction projects. (Source: The Phnom Penh Post)

Kingdom and France concur to strengthen their tourism ties Cambodia has urged France to expedite the construction of the National Vocational School in Tourism (VST) to enhance skills and streamline service delivery in the tourism sector. The meeting took place between Cambodia's Minister of Tourism, Sok Soken, and French Ambassador Jacques Pellet. The initiative aims to transform the Kingdom into a dynamic, competitive, sustainable, and inclusive destination. The French Development Agency (AFD) is responsible for establishing the first international standard tourism schools in Phnom Penh and Sihanoukville province. The TVS is expected to be inaugurated in early 2024, providing international tourism skills for tour guides, travel operators, and workers. The French government is committed to working with international stakeholders and key tourism partners to promote Cambodia's tourism destinations and attract more tourists from France. (Source: Khmer Times)

Investors continue to find Cambodia appealing, according to PWC Cambodia is a frontier economy in Southeast Asia, with an annual GDP growth rate of 7.1% between 1994 and 2021, driven by manufacturing, agriculture, tourism, and construction sectors. Despite the COVID-19 pandemic, Cambodia is making a fast recovery. PwC Singapore's 'Cambodia's Infrastructure Market Update and Outlook' highlights potential infrastructure investment opportunities and identified sub-sectors in need of development. The report suggests $28 billion in infrastructure investment to support economic growth between 2016 and 2040. The report also highlights key roadmaps for investors, including the Royal Government of Cambodia's infrastructure development plan, the Transport and logistics master plan, and the Public-Private Partnership (PPP) Law. The PPP Law of 2021 has advanced investment in infrastructure, aiming for greater private capital and efficiencies in infrastructure creation. Joint ventures with local players are also possible, but the ability to raise affordable long-term capital remains a challenge. (Source: Khmer Times)

Corporate News

Wing Bank and AdvancedMSP to revolutionize HR solutions for the financial sector Wing Bank and Advanced MS Provider Co., Ltd (AdvancedMSP) have partnered to revolutionize Payroll and Human Resource Information System (HRIS) in Cambodia. The partnership, signed through a Memorandum of Understanding, aims to address the challenges faced by businesses in the local market. By integrating Wing Bank's payroll system with AdvancedMSP's JPayroll Solutions, clients can expect a smoother experience in payroll and HR management. AdvancedMSP, launched in 2013, has partnered with over 20 software vendors and providers, with around 200 clients across Southeast Asia. Wing Bank currently offers its own Wing Biz+ payroll service, allowing employers to process payroll digitally for employees at no cost. The bank has established one of the largest digital banking ecosystems in the Kingdom, attracting 3,000 SMEs, 600 businesses, and 10 government institutions. (Source: Khmer Times)

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