Property News Roundup 17th June 2024
We’re delighted to share the weekly news highlights below.
- Cambodia’s Economic Activities Up in Q1’24, Domestic Demand Subdued – World Bank
In the first quarter of 2024, Cambodia’s economic activity saw an uptick due to a significant rise in goods and services exports, including a surge in tourism, despite a subdued domestic demand, as reported by the World Bank. The slowdown in domestic credit growth, influenced by the property market downturn and higher interest rates, coupled with zero inflation in March, contributed to the lackluster domestic demand. While goods exports grew by 17.2% year-on-year to $6.3 billion, driven by the textile industry and increased foreign tourist arrivals, the construction sector remained sluggish. Cambodia’s GDP is projected to grow, but the World Bank advises that sustaining this growth requires maintaining macro-financial stability, reviewing tax policies, and strengthening the financial sector against rising private debt and non-performing loans.
June 10th 2024 | Kiripost | Link: t.ly/i8a0w
- Cambodia & Singapore Push for ASEAN Power Grid to Combat Rising Electricity Prices & Promote Green Energy
Cambodia and Singapore are spearheading the revival of the ASEAN Power Grid initiative, a project aimed at fostering green energy, environmental protection, and managing escalating electricity costs. Announced by Cambodia’s Minister of Mines and Energy, Keo Rattanak, this proposal seeks to realize a vision set by ASEAN 25 years ago. The initiative promises economic benefits, including increased competition, investment opportunities, and job creation for the youth. With positive support from ASEAN members, the upcoming Energy Ministers’ meeting in Laos is set to further discussions on interconnecting the power grids of the 10 ASEAN countries, which could lead to Cambodia becoming an energy exporter within the region and attracting long-term investments.
June 10th 2024 | Construction & Property | Link: t.ly/YcnV5
- Russia to consider direct flights to Kingdom
Russia is considering establishing direct flights to Cambodia to boost tourism, as the number of Russian visitors to the Kingdom increases. This initiative was discussed during a meeting between Senate President Hun Sen and Russian Ambassador Anatoly Borovik. The direct flights are expected to enhance bilateral relations, economic cooperation, and tourism exchange. Analyst Chey Tech suggests that this could also lead to increased trade, particularly in Cambodian agricultural exports to Russia. The move is part of broader efforts to strengthen Cambodia’s strategic partnerships with global superpowers for economic and trade benefits.
June 10th 2024 | Phnom Penh Post | Link: t.ly/9NcLY
- Canadian Investors Explores Investment Opportunities in Six Key Sectors in Cambodia
A Canadian business delegation from Montreal explored investment opportunities in Cambodia’s key sectors, including agriculture, tourism, health, real estate, services, and industry. The meeting with Cambodia’s development council highlighted the nation’s supportive market economy and investment incentives. With Canada being Cambodia’s eighth-largest trading partner and investments reaching US$2.062 billion in 2022, the discussions aim to strengthen economic ties and expand Canadian business activities in the region.
June 10th 2024 | Construction & Property | Link: t.ly/heDn5
- TIA to Phnom Penh railway underway, as airport enters final straight
The Phnom Penh Techno International Airport (TIA) is nearing completion, with over 70% of the construction finished and plans to be operational by early 2025. A railway connecting TIA to central Phnom Penh is set to begin construction along the 60 Meter Road, aiming to ease transportation without increasing road traffic. The $1.5 billion project, a joint venture between the Cambodian government and private entities, is expected to boost Cambodia’s tourism industry, aligning with the Ministry of Tourism’s goal to attract 6.4 million international tourists by 2025.
June 11th 2024 | Khmer Times | Link: t.ly/CJ7Zx
- PM Announces No More Casino Licenses in Central Kampot and Kep, With Few Exceptions, Except…
Prime Minister Hun Manet announced a halt to issuing new casino licenses in the central regions of Kampot and Kep, with limited exceptions, during the Kampot Multi-Purpose Port Development Project’s inauguration. The PM directed investors towards border areas and Sihanoukville for casino development and advocated for agro-industrial economic zones in these provinces as a more favorable investment alternative.
June 12th 2024 | Construction & Property | Link: tinyurl.com/ysvpakdm
- Chinese Company YIG Eyes SEZ Opportunity Near Siem Reap Angkor International Airport
YIG, a prominent Chinese investment firm, is considering the development of a Special Economic Zone (SEZ) near Siem Reap Angkor International Airport, which could significantly enhance the region’s economy. The SEZ would focus on renewable energy, tourism, and agriculture, aiming to create a dynamic economic hub. The Cambodian Investment Committee’s Secretary-General expressed strong support for the initiative, recognizing its potential to generate jobs and attract tourists. YIG’s existing stake in the airport project further strengthens its position to successfully develop the SEZ.
June 13th 2024 | Construction & Property | Link: t.ly/15M2X
- Textile and Garment Exports Show Strong Signs of Recovery
Cambodia’s textile and garment industry is experiencing a robust recovery, with a 22% increase in exports in the first five months of 2024, earning nearly $5 billion. This sector, employing close to a million people, accounts for 48% of the nation’s total export revenue. The World Bank forecasts Cambodia’s economic growth at 5.8% for 2024, buoyed by the garment sector and tourism. Economic analyst Hong Vannak highlights the industry’s resilience post-Covid-19 and the Ukraine-Russia war, despite challenges such as inflation and the EU’s partial withdrawal of the EBA agreement. The World Bank and Vannak emphasize the need for Cambodia to diversify beyond garments, particularly in agriculture, to maintain competitiveness and economic stability.
June 14th 2024 | Kiripost | Link: t.ly/gG6yW
- PM Announced Plan to Build Coastal Cycling Path from Kep to Koh Kong
Cambodia’s government, led by PM Samdech Hun Manet, has announced the construction of a coastal cycling path from Kep to Koh Kong. Revealed during the Kampot Multi-Purpose Port inauguration, the path aims to boost sustainable tourism and outdoor activities. Stretching 200-300 kilometers, it will provide scenic routes for cycling and marathons, with potential fundraising for Kantha Bopha Hospital. This initiative is part of the government’s commitment to improving infrastructure and transportation for public benefit.
June 14th 2024 | Construction & Property | Link: t.ly/1a4UB
- Stung Prek Tnaot Rehabilitation Project Nears Completion with 95% Progress
The Stung Prek Tnaot Rehabilitation Project in Cambodia is nearing completion, with 95% of the work finished and expected to be fully done by June or July 2024. The project includes the rehabilitation of 26km of Stung Prek Tnaot, 3.5km of Prek Hoor, and a 3.7km canal, among other initiatives. Additionally, the Prek Peam Satha Rehabilitation Project is 65% complete and should conclude by August 2024. These efforts are part of a broader strategy to enhance irrigation, manage water, and prevent flooding in Phnom Penh and its vicinity, ultimately improving the quality of life for local residents.
June 14th 2024 | Construction & Property | Link: t.ly/qCBLZ