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Cambodia’s exports to US up 37% this year

In the eight months of 2022, Cambodia’s exports to the US touched $6.4 billion, an increase of 37 percent compared to the same period in 2021, which was at $4.6 billion, General Department of Customs and Excise of Cambodia (GDCE) said in its latest report.

Imports from the US to Cambodia were at $224 million, a decrease of 3.5 percent, compared to the same period in 2021 at
$232 million.

Most of the goods Cambodia exports include clothing, shoes, travel goods, and agriculture products. From the US, it imports cars, electronics, medicines and medical equipment.

Cambodia-US trade relations have had significant growth over the last few years. In 2021, Cambodia-US trade volume was more than $7.8 billion. In addition, Cambodia’s exports amounted to $7,490 million to the US market, while the US imports from Cambodia were more than $336 million.

For full article, please read here


Author: Sok Sithika 

Source: Khmer Times 


Cambodian and Singaporean investors teamed up to develop digital business-focused app

Local and Singaporean investors have teamed up to develop ePOS – Go Digital, a modern digital business-focused app that allows local enterprises to market their products to a wider local, regional and global audience, and tap into the burgeoning online shopping space.

Developed by Phnom Penh-based Riich Me Co Ltd – an affiliate of Singapore headquartered Riich Me Pte Ltd – and officially launched on September 10 after a preliminary release, the app aims to provide today’s e-business owners with management solutions for a new generation of sales systems to improve purchases, including the QR- (quick response) code-powered ePOSQR service that enables users to sell both online and offline.

Speaking during the launch ceremony, Prum Pheaktra, CEO of ePOS Go Digital Co Ltd, the app’s associated company based in Phnom Penh, commented that the emergence and wider use of technologies has had a significant impact on daily life, education and business practices.

Covid-19 taught many vital lessons as enterprises suffered, especially family-based ones – that without an adequate set of standards, management systems or technologies to drive sales or other operations, businesses are at higher risk of being shut down by unforeseen circumstances, she said.

Pheaktra commented that the app’s launch was motivated by the ongoing challenges confronting local business owners as a result of Covid, inflation tied to the Russia-Ukraine conflict, and other global political and economic crises. She said the platform aims to inspire family businesses to adopt a digital management system that will allow growth and development.

She said ePOS Go Digital would team up with Riich Me Pte Ltd “to develop business management technology and modernisation solutions that are tailored to the Cambodian context and are easy to operate with a convenient smartphone app for small business owners, especially those with limited technical know-how”.

The app can be used to boost sales, develop businesses and increase household incomes, Pheaktra reiterated.

For more information, please read here


Author: May Kunmakara

Source: The Phnom Penh Post 

Marcos leaves Indonesia with $8.48 billion worth of investment pledges: Palace

JAKARTA - President Ferdinand Marcos Jr. will bring home $8.48-billion worth of pledged investments after his 3-day state visit to Indonesia, Malacañang said on Tuesday.

The amount was computed based on the “summary of memorandums of agreement and letters of intent signed at the Jakarta Business Roundtable Meeting on September 5, 2022,” Press Secretary Trixie Cruz-Angeles said in a statement.

The investment pledges for the Philippines from Indonesia’s business community are as follows:

$822 million in investments to textiles, garments, renewable energy, satellite gateway, wire global technology, and agrifood
$7 billion in infrastructure for unsolicited private-public partnerships such as a C-5 4-level elevated expressway
$662 million trade value for supply of coal and fertilizer.
“We anticipate that these will generate at least 7,000 new jobs,” Cruz-Angeles said.

Source: ABS-CBN News

China, EU remain potential markets for Cambodia’s agri products

China and the European markets remain the potential markets for Cambodia’s agricultural products, said key insiders, urging exporters and companies to focus on those two big markets for their processing of agricultural products.

Song Saran, president of the Cambodia Rice Federation, has encouraged those wishing to start agro-processing businesses for export to international markets shall try to grab the Chinese and European markets to sustain their exports.

China continues to be the top buyer of rice from Cambodia, with 50 percent of the market share and more than 30 percent of the EU market.

As the free trade agreement between Cambodia and China has pushed the bilateral trade between the two countries, especially factors of close relations between government and government, Saran said in a forum on business and investment opportunities in the agriculture sector held last Saturday.

Speaking of the EU market, Saran said the EU market is a long-term market, although the level of growth does not exceed 200,000 to 300,000 tons per year.

“These two markets are very potential markets for Cambodia, which can promote exports quickly and without wasting time,” Saran said.

“The model for those in the agro-food processing sector is only two markets that we must try to grab China and Europe which are possible. Other markets are still complex,” he said.

Cambodia exported more than 2.4 million tons of agricultural products to China from 2019 to June 2022, earning gross revenue of $1.94 billion, Minister of Agriculture, Forestry and Fisheries.

For full article, please read here


Author: Chea Vanyuth

Source: Khmer Times

ASEAN for Business Bulletin Jul-Aug 2022: Implementing ASEAN Trade in Goods Agreement (ATIGA); Collaboration in TVET

July 2022 Issue (link)
ATIGA brings ASEAN closer to its goal of becoming a single market and production base by reducing the tariff and non-tariff barriers for trade. ATIGA also creates the Rules-of-Origin procedures that provide flexibility in declaring the product’s certificate of origin

August 2022 Issue (link) 
ASEAN prioritises public-private partnerships to address skill mismatch and reinforce TVET training. In the new issue of ASEAN for Business, ASEAN Secretariat spoke with Wisnoe Satrijono, Executive Vice President of Human Capital Strategy at PT PLN (Persero) about business’ contribution to TVET and how it mutually benefits their operation.

Manufacturing Activity Improves in August

MANILA, Philippines — The country’s manufacturing sector showed improvement in August as it grew at a faster pace, but high prices, supply chain disruptions and rising interest rates pose challenges to growth.

In its report released yesterday, S&P Global Market Intelligence said the Philippines’ manufacturing purchasing managers’ index (PMI) improved to 51.2 in August from 50.8 in July.

The latest reading is above the 50-no change mark which separates growth from contraction, and showed growth for the sector for the seventh month.

While there was improvement, S&P Global said “the uptick was weaker than the series average.”

The PMI is based on a survey of around 400 manufacturers.

“August PMI data signalled an improvement in operating conditions across the Philippines’ manufacturing sector. Encouragingly, employment increased strongly and at the sharpest pace since mid-2017,” said Maryam Baluch, economist at S&P Global Market Intelligence said.

Firms hired additional staff in anticipation of increased production in the coming months.

Despite the improvement seen in August, Baluch said there are growing downside risks to growth.

“Already we have seen output failing to expand during the latest survey period, and factory orders falling for the second consecutive month. Furthermore, price pressures remained persistently high,” Baluch said.

Lower new order inflows led to a cutback in firms’ purchasing activity in August.

While the rate of contraction was mild, S&P Global said this is the first reduction in input buying since January.

It also said stocks of raw materials and semi-finished items went up at its softest pace since October last year.

The same was seen for post-production inventories as stocks rose at the weakest pace since February, reflecting tepid client demand.

Amid supply-side disturbances, as well as rising energy and material prices, S&P Global said purchasing costs have now risen in each month since May 2020.

“Headwinds heighten concerns that inflationary pressures, supply chain disruptions, the weakening of the peso and a high interest rate environment, with further hikes expected, will squeeze demand as clients’ disposable income will take a hit,” Baluch said.

The Bangko Sentral ng Pilipinas (BSP)  earlier said  inflation likely reached 5.9 to 6.7 percent in August, driven by the continued uptick in food prices.

Inflation rose to 6.4 percent in July from 6.1 percent in June.

Last month, the BSP delivered a 50-basis point rate hike to tame inflation. This brought the overnight reverse repurchase facility rate to 3.75 percent, overnight deposit facility to 3.25 percent, and the overnight lending facility to 4.25 percent.

“While the Filipino economy showed strong growth post-COVID, the following months will challenge momentum, with the PMI data already recording softer output expectations for the year ahead,” Baluch said.

Half of surveyed firms are hopeful of an expansion in output in the coming 12 months.

“However, the degree of confidence posted second-lowest in seven months and was subdued in the context of the series history,” S&P Global said.

Seizing Momentum: Can Indonesia’s G20 Push for The Promotion of Business and Human Rights?

Jakarta. At the height of President Suharto’s tenure in leading Indonesia, the country was famously dubbed an “Asian Tiger” as a testament towards the country’s economic and political strength which reverberated across the international community. However, the country’s culture of cronyism, its questionable human rights record and the unaccountable authority exercised by an exclusive executive branch that carried free reign ultimately led to dire economic consequences. This jolted Indonesia to transform—albeit at a gradual pace.

Shifting towards the present day, reform has boded well for the country, with the economy and infrastructure being on President Joko Widodo’s main agenda. Indonesia also now wears many hats, first as an economic and political powerhouse in Southeast Asia determined to roar once again, second as the country coordinator of the US-Asean Special Summit which recently concluded, and third, as President of G20 which marks the first time Indonesia has carried the baton since the G20’s first meeting in 2008.

With Indonesia being laser focused on its pursuit of economic growth and the political influence the country carries, the fundamental question remains whether the G20 can serve as a platform that can support economic growth whilst jointly prioritizing the adherence of business and human rights.

The prevalence of Covid-19 has fostered innovation to accelerate in monumental ways, whether it may be in the goal of curtailing cases or in the shifting of conventional businesses to adapt in a new normal. Indeed, disruption has revealed not only the resilience of a people in a time of crisis but also serves as a reminder of the inequalities found within society.

During a crisis, especially one that has the potency to cost lives, the gap between the haves and the have nots are evident as questions swirl regarding the protection of people without job security, the rising costs from a stalled global supply chain and the enforcements of regulations that put profit ahead of people.

Although the international community has taken great strides in calling to action for nearly a decade through the United Nations Guiding Principles on Business and Human Rights (UNGP), and even though the framework which upholds protection, respect and access to remedy has been translated into National Action Plans by more than 25 countries including G20 members such as the United Kingdom, Germany and Japan, its impact in improving the climate of business and human rights beyond from expanding corporate social responsibility programs remain to be seen.

At the same time, the G20, which comprises two-thirds of the world’s population and up to 80% of international trade has an influential stake regarding the direction of business and human rights in a regional and global purview. Although the sounding board of human rights has been noticeably absent from the priorities of Indonesia’s G20 presidency, the priority issues presented such as global health architecture, digital transformation and sustainable energy transition requires the adherence of human rights to ensure that innovation navigated through a rules-based order is maintained. Thus, the G20 is an opportunity for countries to chart the next course that can bring business and human rights from principles to practice.

The opportunity for the G20 to take the driver’s seat in steering towards more sustainable practices in business and human rights is supported with precedent. In 2015, the G7—which was then led by Germany—asserted support towards the UNGP and welcomed efforts to develop substantive National Action Plans which would assist in ensuring responsible and accountable supply chains. The G7 at that time also called for greater due diligence for companies and the strengthening of stakeholder initiatives that can promote greater corporate respect for human rights. These priorities come full circle as Germany has taken the helm of the G7 once again this year where they continue to highlight the need for accelerated efforts towards the realization of the UNGP by seizing legislative momentum, collective measures, and the implementation of capacity building.

Hence, the G20 is positioned strategically to communicate ideas vested upon business and human rights. On the Indonesian front, it also serves in the country’s national interest as an accelerated show of reform and a forward-thinking commitment to bring businesses into the accountability of human rights. 

The first step in pushing for a human rights based-economy is through the recognition of the importance ingrained within the concepts of business and human rights. This is a crucial focal point for the G20 which can utilize their platform to mainstream the principles of business and human rights as an underlying business model that can be used to achieve their global goals. Furthermore, it should also become a maxim of the G20 to support data-driven research which points that responsible business also equates to a long-term investment that ensures sustainable business practices. 

Second, the G20 needs to leverage this influence and authority by leading through example and become a role model for responsible business in the current international landscape.

For example, as G20 president, Indonesia can lead the charge in presenting the building blocks of business and human rights for the digital era as the country is home to approximately 2300 start-ups which comprises decacorns as well as unicorns. 

Third, the G20 needs to also present the implementation of business and human rights as a response in developing trends of the future where an aspect of business competitiveness will be measured through corporate responsibility on human rights. In addition, the G20 should further recognize that adherence to business and human rights will become the gateway of investor confidence and consumer preference. 

Innovation should not become the ultimate currency that can delay or be served as a bargaining tool when it comes to propping up an economy based on human rights. The spectacular advancements seen in the disruption of industries and the welcoming of digitalization, sustainability and the reform of global health systems are indeed aspects that need to be lauded but we should also make sure that growth benefits the many and not the few. 

Opinion by: PATRICIA RINWIGATI & RAAFI SEIFF
Image: President Joko Widodo symbolically receives the G20 presidency from Italian PM Mario Draghi at the G20 summit in Rome on October 31, 2021. (Presidential Secretariat's Press Bureau/Laily Rachev)

40 Malaysian companies eye Cambodia investment

Raising the prospects of further investment in Cambodia, 60 delegates from more than 40 Malaysian companies under the leadership of the Malaysia Retail Chain Association (MRCA) started their four-day visit yesterday.

MRCA signed two MoUs during a function at Sofitel Phnom Penh Phokeethra.

It entered into agreements with the Asia Cambodia Law Group and the Association of Guang Dong China Commercial Representative in Cambodia.

Besides Phnom Penh, the trade mission, organised by the Cambodia Embassy in Malaysia and MRCA, plans to visit Kampong Speu province during its four-day trip.

While addressing the delegates, Dr Nhem Khemara, secretary of state, Ministry of Foreign Affairs and International Cooperation, said, “Over the last 65 years, Cambodia-Malaysia bilateral relations have witnessed a significant improvement in various spectrums.

Despite the impact of the Covid-19 pandemic, bilateral trade reached approximately $500 million in 2021, up 13 percent from 2020. Around 162 Malaysian investment projects worth $3.2 billion have been approved so far this year.”

Talking about the significance of the trade mission, Cheuy Vichet, Ambassador of Cambodia to Malaysia, said, “It gives me great pleasure and honour once again to co-lead another trade mission from Malaysia to Cambodia. Our forum today is an excellent venue for tripartite collaboration and partnership between businesses from Cambodia, Malaysia and China.”

For full article, please read here



Author: Adur Pradeep

Source: Khmer Times

Indonesian People Can Use QRIS Payment in Thailand Start Today

The Governor of Bank Indonesia, Perry Warjiyo said that the implementation of the inter-country payment system through the Quick Response Indonesia Standard or QRIS can be fully implemented in Thailand today, August 29, 2022. As for the implementation, Indonesian tourists who travel to the country can already make payment transactions via a QR code. It is known, this application is slightly backwards from the plan.

"We have tested QR Indonesia and QR Thailand, and starting today, full implementation. So that MSME trade tourism transactions can connect QR," Perry Warjiyo said in the Launching of Domestic Government Credit Cards & International QRIS on Monday, August 29, 2022.

Perry Warjiyo conveys this was part of a follow-up to President Joko Widodo's direction to connect Indonesia's payment system to the world. Where it starts from ASEAN.

Bank Indonesia itself is targeting ASEAN countries for the implementation of Interstate QRIS, fast payment, a.l. Malaysia, Singapore, Philippines and Thailand. "In May 2022, we have gathered five Central Bank Governors, namely Indonesia, Thailand, Malaysia, Singapore and the Philippines. We have committed to connecting the payment system," Perry remarked.

Meanwhile, for Malaysia, the payment system is still in the trial phase starting in January 2022. The trial with Singapore is currently at the stage of finalizing the agreement. "In the near future, our five countries will be able to digitize cross-border payment systems, QR, fast payments with local currency payments. At the same time support tourism, support MSMEs, and also support the digital financial economy nationally," Perry Warjiyo remarked.

Cambodia-Thailand trade goes up over 26%

Trade between Cambodia and Thailand went up by 26.46 percent in the first seven months of the year to $2.781 billion from $2.199 billion during the same period last year.

According to data from the General Department of Customs and Excise, from January to July this year, Cambodia exported $559 million of goods to Thailand, up 38.36 percent year on year while Thailand’s exports to Cambodia were worth $2.222 billion, up 23.85 percent from the same period in 2021.

Most of Cambodia’s exports to Thailand are agricultural products, while imports from Thailand to Cambodia include automobiles, fuel, construction materials, fertilizers, food products and cosmetics.

In terms of trade balance, Cambodia has a trade deficit with Thailand to the tune of $1.663 billion, or nearly four times greater than its exports.

According to the sixth meeting of the Joint Trade Committee (JTC), the two sides had set a bilateral trade target of $15 billion in 2020.

Hong Vannak, the economic researcher at the Royal Academy of Cambodia, explained that Thailand and Cambodia could not reach the target by 2020 mainly because annual bilateral trade between Cambodia and China rose by over $10 billion.

For full article, please read here


Author: Sok Sithika 

Source: Khmer Times

Chief finance and sustainability officer among new green roles in finance and accountancy sectors: Study

Companies that are committed to reducing their carbon footprint and making progress in green finance should consider having a chief finance and sustainability officer (CFSO), recommends a local accountancy study.

A CFSO would have the chief financial officer and the chief sustainability officer reporting to him or her, whose role would be to integrate finance with sustainability in a company's business strategy.

The high-ranking executive would convert the environmental impact of the company's activities - such as greenhouse gas emissions and pollution - into financial metrics to guide the firm's strategy in meeting sustainability goals.

The CFSO is among an alphabet soup of new green professions - such as an environmental, social and governance (ESG) specialist - that is emerging as the green momentum picks up.

It is an uncommon job role that is present in organisations, such as CapitaLand Investment, that already have well-developed sustainability initiatives and commitments, the report stated.

The new study, Sustainability: Jobs and Skills For The Accountancy Profession, was jointly conducted by the Institute of Singapore Chartered Accountants and three other organisations including the Singapore Management University (SMU).

Its report, released at the annual Professional Accountants in Business Conference on Thursday (Aug 25), shed light on the skills that accountants and finance professionals need in order to perform sustainability-related roles, and where the skill gaps lie.

The study said accountants are well placed for the role of CFSO, as they have the intimate and in-depth finance knowledge to lead their organisation's sustainability agenda.

It said the three trends that are driving finance professionals to expand into the green space are decarbonisation, sustainability reporting and disclosures becoming more widely adopted, and the growth of green finance.

In her keynote speech at the conference, Second Minister for Finance and National Development Indranee Rajah said accountants can lead the charge in pushing their companies to become sustainable.

Their roles in a company would give them the perspective and knowledge to set sustainability ambitions, institute environmental practices that make business sense, and hold their companies accountable for their sustainability pledges.

The report added that sustainability reporting and disclosures, which can involve complex data, are the most pressing challenges for companies now.

Sustainability reporting has been mandated on a "comply or explain" basis by the Singapore Exchange since 2016, and since 2022, climate-related reporting has been mandatory for listed companies.

"As sustainability reporting picks up, there will be demand for accountants to provide assurance and verify these sustainability reports, so as to hold companies accountable for their plans," added Ms Indranee, who is also Minister in the Prime Minister's Office.

To bridge the knowledge gaps for working professionals and students interested in this sector, universities have introduced sustainability modules for accountancy and finance students.

Professor Cheng Qiang, dean of the SMU School of Accountancy, said the curriculum at the school has been adjusted to include content on ESG metrics, to meet the rising demand for sustainability accountants.

But the report concluded that more needs to be done, finding that business and accountancy courses at local institutes of higher learning offer few modules on sustainability and even fewer ones on sustainability reporting, and called for specialised courses or modules.

Read more: Here

Nature-based solutions could yield US$4.3 trillion in economic value by 2030

After 4 years of construction, a drab concrete canal along a section of Sungei Tampines has been given a makeover, and is now a naturalised waterway with greenery.

Rain gardens that help cleanse stormwater run-off, support more native biodiversity and enhance flood protection have been incorporated. Plants grown using soil bio-engineering techniques also help stabilise the soil.

This is just one example of how nature-based solutions and engineered solutions are being integrated to create “green-grey” infrastructure that helps Singapore mitigate and adapt to climate change, said Koh Lian Pin, professor at the National University of Singapore and the director of its Centre for Nature-based Climate Solutions.

Alongside moves to decarbonise the economy through the use of cleaner energy production systems, nature-based solutions are also part of the toolkit in the transition to a circular economy.

Termed “closing the loop” by some, this refers to a production and consumption model where the life cycles of products are extended as long as possible through reuse or recycling.

Nature-based solutions are, simply put, about using nature to improve the state of the world. These solutions could provide over one-third of the cost-effective climate mitigation needed to achieve net-zero emissions by 2050, said GenZero, an investment platform dedicated to decarbonisation solutions.

According to a report by state investment firm Temasek in collaboration with the World Economic Forum and strategic economics consultancy AlphaBeta, nature-based opportunities across 3 systems — food, land, and ocean; infrastructure and the built environment; as well as energy and extractives — could deliver US$4.3 trillion of annual economic value and generate 232 million jobs by 2030 in Asia-Pacific.

Read more: Here

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