Insurance sector grows moderately YoY

Economy and Industry

Insurance sector grows moderately YoY Cambodia's insurance sector continued its expansion at a slower pace, with total premiums reaching $96.5 million in 1Q24, up 9% YoY, according to the Insurance Regulator of Cambodia (IRC). The market comprises 18 general insurers, 14 life insurers, seven micro-insurance companies, and one reinsurance firm. General insurance premiums grew by one percent to $44.9 million, while life insurance premiums increased by 0.9% to $51.5 million. Endowment policies led life insurance premiums, while property insurance dominated the general sector. As of 2023, total assets of the insurance sector stood at $1.1 billion, despite slower premium growth. Claims paid by insurers totaled $16.5 million, a 13.6% rise from the previous year. IRC Director General Bou Chanphirou noted that the insurance industry contributes about 1.1% to Cambodia's GDP annually, indicating significant potential for further growth. The sector recorded a gross premium of $342 million in 2023, up 20% from 2022. (Source: Khmer Times)

MAFF eyes durian export to China The Ministry of Agriculture, Forestry and Fisheries (MAFF) is negotiating a Memorandum of Understanding (MoU) with Beijing to export Cambodian durian to China, a move expected to boost earnings for local durian sellers and growers. Known as the "king of fruits" for its large size, thorn-covered husk, and distinctive smell, durian is a key crop in provinces like Battambang, Kampot, and Pursat. Khim Finan, Undersecretary of State and MAFF spokesman, confirmed ongoing negotiations and highlighted the complexities of the sanitary and phytosanitary measures (SPS) required for such agreements. He expressed optimism for a potential agreement within the year but noted that SPS negotiations can take several years. Durian growers, such as Khim Bunlene from Kampot, emphasize the importance of accessing the Chinese market for better prices, investor interest, and job creation. The MoU would not only benefit farmers but also enhance state tax revenues and overall economic growth. (Source: Khmer Times)

Cambodia's hospitality industry lacks workforce The Ministry of Tourism's recent workshop in Phnom Penh identified insufficient manpower as a major challenge for Cambodia's hospitality industry. Organized by the Hospitality Kampuchea Steering Committee (HoKa SC) under the leadership of Secretary of State Pak Sokom, the event aimed to enhance the training of tourism professionals. The lack of vocational training schools is a significant issue, with NGOs providing around 1,000 new workers annually and TVET institutions adding 100-150, against a projected demand for 180,000 professionals by 2025. The shortage of qualified trainers, especially at the supervisory and management levels, exacerbates the problem. The absence of a national tourism school results in inconsistent training standards, and the lack of a national tourism qualification hampers career progression. Low salaries and perceived limited career growth deter young people from pursuing tourism careers. Recommendations included developing eco-tourism, aligning training programs with national TVET policies, and embracing digital and blended learning methods to address skills development needs. (Source: Khmer Times)

Corporate News

PWSA reports 35.62% profit increase in 1Q24, plans further expansion CSX-listed Phnom Penh Water Supply Authority (PWSA) reported a 35.62% profit increase for 1Q24, reaching KHR 52.09 billion or USD12.59 million. According to its CSX filing, PWSA's total revenue for the period was KHR 106.81 billion or USD 25.82 million, with a profit before tax (PBT) of KHR 62.82 billion or $15.18 million. The earnings per share (EPS) were KHR 598.95. Furthermore, PWSA produced 76.6 million cubic meters of water and installed 7,320 new house connections, including 959 for low-income families. Total connections rose by 21,315 to 388,312 and monthly consumption per connection increased to 30.33 cubic meters. Key profit drivers included a 28.4% increase in sales revenue, significant other income growth, reduced construction service expenses, and a lower non-revenue water rate of 9.75%. PWSA plans to expand its distribution network further and maintain efficient operations, targeting to produce 76.6 million cubic meters of water in 2Q24. (Source: Khmer Times)

Stock Market

CSX index drops slightly amid mixed stock performance On June 12, 2024, the CSX index closed at 408.6 points, was down 0.12% from the previous day. The main board saw gains in GTI (+1.32%) and PPAP (+0.46%), while PEPC (-2.28%), PAS (-0.65%), MJQE (-0.49%), and PWSA (-0.29%) experienced declines. PPSP, ABC, and CGSM remained unchanged. On the growth board, DBDE and JSL were down by 1.30% and 2.57%, respectively. The total trading volume was 180,594 shares, with a cumulative trading value of KHR 639 million. (Source: YSC Research)

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