Call for Cambodia to establish deposit-protection schemes

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CSX Index Gains 0.14% with Notable Stock Movements on January 2 On January 2, 2024, the CSX index concluded at 472.6 points, indicating a 0.14% increase from the previous day's close. Noteworthy movements were observed on the main board, where PAS (+0.16%), PEPC (-1.09%), and MJQE (-0.47%) exhibited changes. PWSA, GTI, PPAP, PPSP, and ABC maintained their values from the previous day. Meanwhile, on the growth board, DBDE experienced a 0.47% decline, while JSL saw a 0.45% increase. The overall trading activity involved 46,763 shares, with a total trading value reaching KHR 281 million. (Source: YSC Research)

Economy and Industry

Call for Cambodia to establish deposit-protection schemes The ASEAN+3 Macroeconomic Research Office (AMRO) has urged the National Bank of Cambodia (NBC) to establish deposit-protection schemes to enhance the stability of the banking framework in the country. The NBC should intervene judiciously to minimize excessive volatility while striking a balance between exchange rate stability and foreign reserve adequacy. The financial supervisory framework and domestic financial safety net could be further strengthened. AMRO also recommends tightening regulatory oversight and supervision of unregulated shadow banking activities to mitigate risks from a prolonged real estate downturn. The new government's commitment to structural reforms is crucial for sustained economic growth. The organization also emphasizes the importance of restoring fiscal space and improving the long-term growth prospects of the economy. Deposit-protection schemes have been implemented in many countries, including those in the ASEAN region, and have significantly contributed to raising savings rates, resulting in positive impacts on the economies of these countries. (Source: Khmer Times)

81% of Cambodian firms are affected by Covid-19, Census report says The Covid-19 pandemic has significantly impacted 81% of business establishments in Cambodia, primarily in manufacturing, wholesale and retail trade, as well as accommodation and food service activities. The majority of affected firms reported lower revenues in 2022, with 44% experiencing reduced income, and 26.6% reporting increased expenditures. The most affected sectors include wholesale and retail trade, repair of motor vehicles and motorcycles, accommodation and food service activities, manufacturing, human health and social work activities, as well as financial and insurance activities. Despite government and private sector efforts, the tourism sector in Cambodia, which has been struggling since 2020, is yet to fully recover. Thourn Sinan, Chairman of the Pacific Asia Travel Association, emphasized the ongoing need for government support to aid the sector's recovery. In response, the government launched the Tourism Recovery Co-Financing Scheme in July 2022, disbursing up to $54 million in loans for businesses in the tourism sector. Tourism remains one of the four pillars supporting Cambodia's economy, with 4.4 million international tourist arrivals in the first 10 months of 2023, indicating a potential increase in foreign visitors. (Source: Khmer Times)

Cambodia's exports of rubber products bring in $790 million Cambodia's rubber exports increased by 74.5% from January to November 2023, reaching $789.75 million, according to the General Department of Customs and Excise. This growth is compared to the previous year's $452.65 million. In November, Cambodia earned $114 million from rubber exports, reflecting a 10.9% YoY increase. The surge in rubber exports is primarily attributed to a slowdown in garments, footwear, and travel (GFT) goods. The Cambodian rubber market mainly comprises China, Vietnam, Malaysia, Singapore, India, and the EU. The Royal Government of Cambodia has declared tax incentives to boost rubber exports, with no tariffs collected for rubber exports starting January 1, 2024, if the price of natural rubber falls below $1,600 per tonne. Thailand remains the largest producer of natural rubber, followed by Indonesia, Vietnam, China, India, Malaysia, and Cambodia. The global natural rubber market is expected to reach 14.693 million tonnes for production and 14.738 million tonnes for consumption in 2023. (Source: Khmer Times)

Corporate News

Revenue for Angkor Park doubles in 2023 compared to 2022 In 2023, Angkor Enterprise's revenue surged by 222%, reaching over $37 million from ticket sales, with 798,069 foreign visitors exploring the Angkor Archaeological Park. This growth was attributed to factors such as diminishing concerns about Covid-19, increased international direct flights, local events, and enhanced tourism promotion. Chhay Sivlin, president of the Cambodia Association of Travel Agents (CATA), mentioned that the influx of foreign tourists could be linked to factors like the new Siem Reap-Angkor International Airport and improved infrastructure. Anheng Sokpheak, president of the Cambodia Chinese Tour Guide Association in Siem Reap, expressed optimism about a higher number of foreign tourists in 2024, particularly from Chinese visitors. Khieu Thy, president of the Khmer Angkor Tourist Guide Association, observed a considerable increase in foreigners visiting the ancient temples in Siem Reap, though it still falls short of pre-pandemic levels. The enterprise operates under the Ministry of Tourism and the Ministry of Economy and Finance. (Source: The Phnom Penh Post)

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