Property News Roundup 06th January 2024

06 February 2024 | Posted in News

We’re delighted to share the weekly news highlights below.

  1. ‘Unshirkable responsibility’: China’s financial institutions urged to support property developers

A senior Chinese financial regulatory official has urged China’s financial institutions to offer robust support to the struggling real estate sector and avoid abruptly cutting financing for projects facing difficulties. The official’s comments come after the Chinese central bank implemented its largest reduction in mandatory cash reserves for banks since 2021. Beijing has also issued a new policy mandate aimed at alleviating the cash crunch faced by Chinese developers, who have been affected by measures to address the sector’s excessive debt. The official emphasized the crucial role of the real estate industry in the national economy and its impact on people’s lives. The challenges in China’s real estate sector are closely linked to the financial situation of local governments, which have traditionally relied on land sales to developers as a significant source of revenue.

January 25, 2024 | CNBC | Link: http://tinyurl.com/52wuvfnn

 

  1. Cambodia’s Hun Manet given wary welcome by West despite rights record

Cambodia’s Prime Minister Hun Manet’s recent visit to France, following his appearance at the World Economic Forum in Davos, has been praised by the Cambodian government. The trip resulted in $235 million in development agreements with France, focusing on energy, drinking water infrastructure, vocational training, and the commitment to work towards a “strategic partnership.” This visit reflects Western countries’ varying degrees of interest in improving relations with Manet’s administration, seen as an opportunity to move away from the decades-long rule of his father, Hun Sen. Some experts believe that Western countries perceive their previous attempts to influence Cambodia’s authoritarian trajectory as unsuccessful and counterproductive, pushing the country closer to China. However, human rights advocates and Cambodian opposition leaders criticize Western engagement with Manet, arguing that it legitimizes a government that came to power through a disputed election and a crackdown on dissent.

January 26, 2024 | Nikkei Asia | Link: http://tinyurl.com/2p8jzz57

 

  1. KOICA’s Over US$366.5 Million Investment Propels Cambodia’s Socio-Economic Development

Korea International Cooperation Agency has been a significant contributor to Cambodia’s socio-economic progress, investing over US$366.5 million from 1991 to 2023. The extensive support provided by KOICA has made a profound impact on key sectors such as Water Management and Public Health, Education, Agriculture and Rural Development, and Transportation. This reflects the shared vision of Cambodia and Korea in promoting sustainable development. A recent meeting between Senior Minister in Charge of Special Missions and Second Vice-Chairman of the Council for the Development of Cambodia, and Country Director of KOICA Cambodia Office, recognized and appreciated the transformative role of these projects. H.E Chhieng Yanara expressed sincere gratitude to KOICA and the Republic of Korea for their continuous support and acknowledged their pivotal contribution to Cambodia’s socio-economic landscape.

January 27, 2024 | Construction Property | Link: http://tinyurl.com/36zdpzdy

 

  1. NBC keeps economy up, currency stable

Cambodia has emerged as a “regional leader” in maintaining exchange rate stability in recent years, a crucial factor in preserving macroeconomic balance, despite the global economic downturn causing significant currency depreciation in some countries, according to the National Bank of Cambodia (NBC). NBC governor Chea Serey highlighted that the country has managed to keep the exchange rate of the riel, Cambodia’s national currency, stable at less than 2% against the US dollar, during the central bank’s annual results meeting for 2023 and implementation plan for 2024.

January 28, 2024 | The Phnom Penh Post | Link: http://tinyurl.com/hwfnrkan

 

  1. PPSEZ hits record exports, attracts investors

The Royal Group Phnom Penh Special Economic Zone (PPSEZ), listed on the Cambodia Securities Exchange (CSX), achieved a record export value of $1.621 billion in 2023, marking an important milestone for the zone’s growth, it said in a recent filing. Founded in 2006 before local conglomerate Royal Group became its largest shareholder in December 2021, the PPSEZ’s export value doubled from $316 million in 2016 to $683 million in 2021. The figure then doubled again to $1.346 billion in 2022 and reached an unprecedented $1.621 billion in 2023.

January 28, 2024 | The Phnom Penh Post | Link: http://tinyurl.com/mrym6yhz

 

  1. China’s manufacturing activity shrank for the fourth straight month in January

China’s factory activity contracted for the fourth consecutive month in January, emphasizing the need for policy support in the country. The official manufacturing purchasing managers’ index (PMI) slightly rose to 49.2 in January from 49 in December, while the non-manufacturing PMI increased to 50.7 from 50.4. The services industry showed strength, offsetting weakness in the construction sector due to the real estate slump. New orders in the manufacturing sector saw a marginal increase, and production rose by 1.1 percentage points. Employment in both manufacturing and non-manufacturing sectors declined in December. The construction industry’s business activity index decreased by 3.0 percentage points to 53.9.

January 30, 2024 | CNBC | Link: http://tinyurl.com/urmkce3v

 

  1. PM rolls out S’ville plan, sets 2024 as year of recovery

Prime Minister Hun Manet has declared 2024 as the year of economic recovery in Cambodia and unveiled measures to revitalize the coastal city of Sihanoukville. During an event to launch the ‘Special Investment Promotion Program in Sihanoukville 2024,’ the Prime Minister announced incentives to complete nearly 400 unfinished buildings and emphasized the importance of attracting more investment to Sihanoukville and Siem Reap for the country’s economic progress. The program aims to transform Sihanoukville’s image as a thriving province through tourism and business investments, address practical challenges, align with government policies, and accelerate industrial development. The Prime Minister also highlighted that reducing logistics costs and rehabilitating the construction sector in Sihanoukville would benefit other areas as well.

February 1, 2024 | Khmer Times | Link: http://tinyurl.com/2cv7c9b4

 

  1. Funan Techo Canal ‘to be a game-changer’ for Cambodia

The Funan Techo Canal will not only be an infrastructural marvel of Cambodia but also a game-changer for the Kingdom’s international politics.The Funan Techo Canal project in Cambodia is a significant waterway stretching from River, Koh Thom district, to Kep province, passing through four provinces and serving a population of 1.6 million people. The canal is planned to be 100 meters wide upstream and 80 meters downstream, with a depth of 5.4 meters. The project includes the construction of dams, bridges, a 208-kilometer sidewalk, and other infrastructure. The estimated cost of the project is $1.7 billion, and it is expected to be completed in four years. While Vietnam has expressed concerns about the project’s impact on the Mekong River, the Cambodian government has reassured that it will not have significant effects, backed by a 26-month study.

January 31, 2024 | Khmer Times | Link: http://tinyurl.com/3w2rjcsy

 

  1. Real estate and construction sector to remain sluggish in 2024, NBC says

The 2023 macroeconomic and banking sector outlook and 2024 outlook released by Cambodia’s central bank this week noted that while some areas of the real estate market will progress this year and demonstrate a period of recovery, such as domestic demand for affordable housing, the demand for luxury construction services for non-residents, including condominiums, is expected to remain weak. The report offers a breakdown of trends influencing the property development sector throughout the entirety of 2023, based on credit data.

February 1, 2024 | Khmer Times | Link: http://tinyurl.com/48p8svwv

 

  1. Red Sea conflict impacting shipping lanes, costs rising

A senior official from the Cambodia Logistics Association (CLA) has warned that conflict in the Red Sea has doubled the costs of shipping goods to the US, Canada, and Europe. Transport prices in Asia are also tipped to rise in the near future. CLA president Sin Chanthy said members of the association began notifying him of price increases in December last year, when Houthi rebels in Yemen began firing rockets at cargo vessels passing though the Red Sea, en route to the Suez Canal.

February 1, 2024 | The Phnom Penh Post | Link: http://tinyurl.com/53msbxs6

 

  1. 32 Investment Projects Approved by CDC in January

The Council for the Development of Cambodia (CDC) in January approved 32 new investment projects with a total capital of over US$187 million, according to the council’s press release made public this morning. All the approved projects are in the industrial sector, the source underlined, adding that they are expected to generate almost 29,000 job opportunities. The most outstanding projects include the manufacturing of electronics in Samrong district of Takeo province; the motorbike, bicycle and tri-cycle (EV) assembly plant in Kean Svay district of Kandal province; aluminum, steel and copper processing project in Kong Pisei district of Kampong Speu province; and textile and garment factory project in Kampong Seila district of Preah Sihanouk province, the CDC pointed out.

February 1, 2024 | AKP | Link: http://tinyurl.com/4ysmb8vy

 

  1. Siem Reap hospitality industry brimming with optimism

Leading hoteliers appeared to pin their optimism on the prospects of the new Siem Reap International Airport boosting visitor numbers. Joseph Colina, General Manager of Raffles Grand Hotel d’Angkor (Siem Reap, Cambodia) anticipated more number of flights from the new airport as well as the upcoming airport in Phnom Penh scheduled to open in 2025. “This will make Cambodia more accessible to new markets and easier to discover. All it needs are these additional links, and Cambodia already boasts enough tourism attractions to both match and complement other Southeast Asian travel destinations.” Giulio D’Alberto, General Manager, Zannier Hotels, Phum Baitang, believes the effectiveness of the new airport will dictate the fortunes of the bigger players like Raffles, Hyatt and Sofitel.

February 2, 2024 | Khmer Times | Link: http://tinyurl.com/bdcra9y8

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