Showing posts with label National. Show all posts
Showing posts with label National. Show all posts

Wednesday, November 9, 2016

Cambodia Engagement Plan for Systematic Country Diagnostic

The Systematic Country Diagnostic (SCD) is a nationwide study conducted by the World Bank Group (WBG) in close consultation with national authorities and other stakeholders. It intends to establish a dialogue between the Cambodia Government, the WBG and other development partners in order to focus their efforts around goals and activities that have high impact in ending extreme poverty and boosting shared prosperity in a sustainable manner in the next 5 years. The SCD will be based on the best possible analysis, drawing on available evidence. It will not be limited to areas or sectors where the WBG is currently active.

OBJECTIVES

As Cambodia moves forward as a recently graduated lower-middle income economy, public engagements around the SCD aim to identify key development challenges and priorities to accelerate progress in ending extreme poverty and sharing prosperity widely.

ENGAGEMENT FORMAT

The engagement will include face-to-face meetings as well as an online platform to enable participation by a wide range of stakeholders.

The face-to-face meetings will include a mix of plenary workshops, roundtable meetings, and smaller group discussions.The meetings will take around 3-4 hours, including breakout group discussions as needed, and may include 30-50 participants, aimed at obtaining deeper knowledge in key areas.

The online engagement is expected to gather views through an online survey, in Khmer and English, available during the engagements. People may complete the form online or submit it to cambodia@worldbank.org before December 26, 2016. The online survey form will be sent to people through the Cambodia e-alert, which people may sign up for by clicking here.

On top of this, hard copy questionnaires and postcards will be distributed to collect views from the public in Sihanoukville, Siem Reap and Kratie provinces as well as in Phnom Penh. People will be asked to contribute ideas on how they want Cambodia to be like in the future. 

KEY STAKEHOLDERS

Engagement meetings will be conducted with a wide range of stakeholders, including:

  • Government: Officials from the Ministry of Economy and Finance and line ministries
  • National Assembly: Parliamentarians
  • Sub-national Government: Elected members of provincial, district and commune councils of Takeo, Kampot, Sihanouk and Koh Kong provinces
  • Development Partners: Representatives from UN agencies and other development partners 
  • Private Sector: Representatives of domestic and international private sector companies and provincial chamber of commerces of Kampong Thom, Siem Reap, Banteay Meanchey, Battambang, Kandal, Kampong Chhnang, Kampong Speu 
  • Civil Society Organizations and Youth: Representatives of community-based organizations, service delivery NGOs, advocacy NGOs, think tanks, research institutions, academics, labor unions, youth, and LGBT

LOCATION AND PARTICIPANTS

The engagement will take place in Phnom Penh, Siem Reap (North), Kratie (East), and Preah Sihanouk (South). These provinces have been selected for their hub locations which are most accessible to participants from neighboring provinces.

  • Phnom Penh
  • Siem Reap: Siem Reap, Uddor Meanchey, Kampong Thom, Preah Vihear, Banteay Meanchey, Battambang
  • Kratie: Kampong Cham, Kratie, Tboung Khmom, Mondulkiri, Stung Treng
  • Sihanoukville: Preah Sihanouk, Kampot, Koh Kong, Takeo

Participants from civil society organizations (CSO) will be selected by five NGO networks: the Cooperation Committee of Cambodia (CCC), NGO Forum, Community Peacebuilding Network, the Youth Coalition for Unity and Development (YCUD), Gender and Development Network, and CamASEAN-Micro Rainbow International.

LANGUAGE

The engagements with Government, private sector, UN and development partners will be conducted in English with simultaneous translation to Khmer. The engagements with provincial officials, civil society organizations and other local groups will be conducted in Khmer with simultaneous translation to English.

Meeting materials will be provided both in Khmer and English.

INVITATIONS AND BACKGROUND MATERIALS

Invitations and relevant background materials in English and Khmer will be sent to the participants ten days before the scheduled meetings.

STAKEHOLDER FEEDBACK

Meeting summaries with the development partners, private sector, and CSOs, as well as the participants' lists, will be posted on the WBG consultation website. The posted summaries will be available in English and Khmer.

A preliminary summary highlighting inputs and feedback from all consultation meetings and the online survey will be presented to the Ministry of Economy and Finance at a planned wrap-up meeting at the end of the consultation period.

The World Bank

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Digital Health Infrastructure: The Backbone of Surveillance for Malaria Elimination

Strong health information systems hold the key to ending malaria in the Greater Mekong Subregion. The area is of particular concern because of growing resistance to artemisinin-based combination therapies.

Elimination of malaria is not only technically feasible but also a public health imperative. With millions of people at risk from the disease across Asia and the Pacific, and malaria imposing an even bigger burden in Africa, the race is on to eliminate the disease in the Greater Mekong Subregion (GMS). The area is of particular concern because of growing resistance to artemisinin-based combination therapies. Resistance to this last line of simple-to-use and effective malaria drugs has been detected in Cambodia, the Lao People’s Democratic Republic (Lao PDR), Myanmar, Thailand, and Viet Nam.

Key Points

  • With malaria a significant public health threat in Asia and the Pacific, the race is on to eliminate the disease in the Greater Mekong Subregion (GMS). Cambodia, the Lao People’s Democratic Republic (Lao PDR), Myanmar, Thailand, and Viet Nam have all detected growing resistance to artemisinin-based combination therapies, the last line of simple-to-use and effective malaria drugs.
  • In the past 15 years, GMS countries have been successful in reducing malaria, but more recently case numbers have largely flatlined in Viet Nam, and Cambodia, the Lao PDR, and Thailand have all experienced setbacks. Policy is moving from containment of drug-resistant parasites to total elimination of malaria in all five affected countries.
  • The World Health Organization has a regional strategy for malaria elimination in the GMS. This calls for systems for robust case-based malaria surveillance across all GMS countries. When an alert system is in place and malaria is notifiable, making it a legal requirement for all health-care workers to report confirmed cases, it becomes easier to ensure that all malaria cases are detected, reported, and followed up.
  • Achieving malaria elimination in the GMS will require robust systems for case reporting, investigation, and response in order to prevent the onward transmission of malaria. Information and communication technology (ICT) has a key role to play in this.
  • Of 75 identified ICT health projects initiated across the GMS and geared to surveillance of malaria and other communicable diseases, only 19 were directly applicable to surveillance strengthening for malaria elimination. While digital health solutions have a key role to play, malaria elimination cannot be successfully supported by piecemeal measures and requires a robust digital health infrastructure backbone and, where appropriate, integration of vertical programs into mainstream health systems.
  • The “1–3–7” reporting system implemented by the People’s Republic of China incorporates a strict time frame for these activities and serves as a useful model for GMS countries to adopt and adapt.

ADB

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It’s a Triumph For Trump

Donald Trump gestures to his supporters yesterday after stunning the world by defeating Hillary Clinton in the US presidential race. Reuters

Republican Donald Trump stunned the world by defeating heavily favored rival Hillary Clinton in Tuesday’s presidential election, ending eight years of Democratic rule and sending the United States on a new, uncertain path.

A wealthy real estate developer and former reality TV host, Mr. Trump rode a wave of anger towards Washington insiders to win the White House race against Ms. Clinton, the Democratic candidate whose gold-plated establishment resume included stints as a first lady, senator and secretary of state.

President Barack Obama, who campaigned hard against Mr. Trump, telephoned the Republican to congratulate him on his victory and invited him to the White House for a meeting today, the White House said. Mr. Obama was due to speak late last night (Cambodia time) about the election.

“Ensuring a smooth transition of power is one of the top priorities the president identified at the beginning of the year and a meeting with the president-elect is the next step,” the White House said.

Worried that a Trump victory could cause economic and global uncertainty, investors were in full flight from risky assets.

The US dollar, Mexican peso and world stocks fell yesterday, but fears of the kind of shock that wiped trillions of dollars off global markets after Britain’s “Brexit” vote in June have failed to materialize so far.

Trailing in public opinion polls for months, Mr. Trump pulled off a major surprise and collected enough of the 270 state-by-state electoral votes needed to win, taking battleground states where presidential elections are traditionally decided, US television networks projected. His four-year term starts on January 20.

Mr. Trump appeared with his family before cheering supporters in a New York hotel ballroom, saying it was time to heal the divisions caused by the campaign and find common ground after a campaign that exposed deep differences among Americans.

“It is time for us to come together as one united people,” Mr. Trump said. “I will be president for all Americans.”

He said he had received a call from Ms. Clinton to congratulate him on the win and praised her for her service and for a hard-fought campaign.

His comments were an abrupt departure from his campaign trail rhetoric in which he repeatedly slammed Ms. Clinton as “crooked” amid supporters’ chants of “lock her up.”

But Mr. Trump’s campaign manager, Kellyanne Conway, did not rule out the appointment of a special prosecutor to investigate Ms. Clinton’s past conduct, a threat Mr. Trump made in an election debate last month.

Republicans also kept control of the Congress. Television networks projected the party would retain majorities in both the 100-seat Senate and the House of Representatives, where all 435 seats were up for grabs.

Despite losing the state-by-state electoral battle that determines the US presidency, Ms. Clinton narrowly led Mr. Trump in the nationwide popular vote, according to US media tallies. It would mark the second time in 16 years that a Democratic candidate lost the presidency despite winning more votes than the victor.

In 2000, Democrat Al Gore had more votes than Republican George W. Bush.

At Ms. Clinton’s election event a mile away from Mr. Trump’s victory party, an electric atmosphere among supporters expecting to see her become America’s first woman president dissipated.

Ms. Clinton did not immediately make a concession speech, instead sending campaign chairman John Podesta out to tell her supporters to go home. “We’re not going to have anything more to say tonight,” he said.

Prevailing in a cliffhanger race that opinion polls had clearly forecast as favoring a Clinton victory, Mr. Trump won avid support among a core base of white non-college educated workers with his promise to be the “greatest jobs president that God ever created.” He did well in “Rust Belt” states such as Pennsylvania and Ohio.

“Such a beautiful and important evening. The forgotten man and woman will never be forgotten again. We will all come together as never before,” Mr. Trump wrote on Twitter.

In his victory speech, he said he had a great economic plan, would embark on a project to rebuild American infrastructure and would double US economic growth.

Mr. Trump, who at 70 will be the oldest first-term US president, came out on top after a bitter and divisive campaign that focused largely on the character of the candidates and whether they could be trusted in the Oval Office.

Foreign leaders pledged to work with Mr. Trump, but some officials expressed alarm that the vote could mark the end of an era in which Washington promoted democratic values and was seen by its allies as a guarantor of peace.

During the campaign, Mr. Trump expressed admiration for Russian President Vladimir Putin, questioned central tenets of the NATO military alliance and suggested that Japan and South Korea should develop nuclear weapons to shoulder their own defense burden.

Russia and Mr. Putin appeared to be winners from Mr. Trump’s victory. Defying years of US foreign policy orthodoxy, the Republican has promised much warmer relations with Moscow, despite Russia’s intervention in the Syrian civil war and its seizure of Ukraine’s Crimea region.

Russia’s parliament erupted in applause after a lawmaker announced that Mr. Trump had been elected, and Mr. Putin told foreign ambassadors he was ready to fully restore ties with Washington.

US neighbor Mexico was pitched into deep uncertainty by the victory for Mr. Trump, who has often accused it of stealing US jobs and sending criminals across the border.

Mr. Trump wants to rewrite international trade deals to reduce trade deficits and has taken positions that raise the possibility of damaging relations with America’s most trusted allies in Europe, Asia and the Middle East. Reuters

STEVE HOLLAND AND JOHN WHITESIDES

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Dramatic Rise in Exports to Japan

The Kingdom’s total exports to Japan, one of the world’s largest economies, sharply increased in the first nine months of the year, a result of Cambodia’s effort to diversify export markets and preferential trade treatment from Japan.

According to the latest data from the Japan External Trade Organization (JETRO), Cambodia’s total exports to Japan increased more than 20 percent in the first nine months of the year to $930 million compared with about $730 million over the same period last year.   

Soeng Sophary, spokeswoman for the Ministry of Commerce, told Khmer Times yesterday that the rise was in response to the preferential trade treatment offered by the Japanese government and the expanding relationship between the two countries.

“The Japanese government provided us quota-free entry on many of our main products to meet their demand. That is paving the way for us to export to them,” Ms. Sophary said.

“In addition, our Koh Kong Special Economic Zone, where there is an office for Japan to deal with any issues, is also playing a critical gateway for Japanese firms to set up their factories and business there [in Koh Kong],” she added.

“Japan is a potential market for us in Asia. Although their living standards are higher than ours, we can serve their basic daily needs and provide the daily consumer products [they need].”

Former Japanese Ambassador to Cambodia Yuji Kumamaru, who wrapped up his term last month, told Khmer Times before leaving that the growing Cambodian economy meant the manufacturing and goods and services sectors were also growing, drawing a lot of Japanese investment.

“Wages are competitive here – lower compared to China, Vietnam and Thailand. Japanese companies are looking for alternatives and Cambodia seems to be a good place to invest. Also, the workforce is young and can be easily trained. That is another attraction,” Mr. Kumamaru said.

The main exports to Japan from Cambodia are garment products, footwear, sugar, fish and seafood while the main imports from Japan include machinery, automobiles, electronic products, meat, iron, steel and pharmaceutical products.

Meanwhile, according to JETRO’s data, total imports from Japan decreased slightly in the first half of the year by just 0.03 percent to $209.4 million compared to $209.5 million over the same period last year.  

Ms. Sophary said nowadays local consumers have the luxury of purchasing goods from an increasing number of countries with increased trade liberalization, resulting in expanded choices.

“We are an open economy so we have many choices for imported products – not just Japanese ones.  We also see that market demand doesn’t only focus on Japanese products so buyers have many choices,” she said.

“We can notice that our standard of living has improved but incomes are not high so purchasing power is still low. In addition, the rise in the flow of investment from Japan pushes imports from Japan down because they can produce to sell here.”

KHMER TIMES
MAY KUNMAKARA 

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UK Bilateral Trade Unchanged

British Trade Envoy Lord Puttnam (left) with Foreign Affairs Minister Prak Sokhonn. KT/Mai Vireak

The United Kingdom’s bilateral trade dealing with Cambodia will remain unchanged in light of ongoing negotiations on the UK’s position within the European Union, a senior British trade official said yesterday.

Visiting British Trade Envoy Lord Puttnam told Prime Minister Hun Sen on Tuesday that the UK would continue its close trade relationships with Cambodia, according to a video posted to the prime minister’s Facebook page.

“In the UK’s exit from the EU, until now – especially in the negotiation stage – there are no signs of changes that will affect trade and investment relations between Cambodia and the UK,” Lord Puttnam was quoted as saying.

On June 23 British citizens voted to exit the EU. The referendum roiled global markets, including currencies, causing the British pound to fall to its lowest level in decades.

The UK is presently one of the largest export markets for Cambodia under its Everything But Arms agreement with the EU. Last month, the prime minister spoke of his plans to negotiate new trade agreements that would offset any changes in trade due to Britain’s position.

“Before, we exported to Britain some $882 million through the European Union. But now, we have to negotiate with Britain on whether we still can export under that trade agreement. We want to know whether we can still get preferential trade privileges, as we used to previously,” said Mr. Hun Sen.

In an email from the British Embassy to Khmer Times in July, it stated that until the UK had officially left the EU, it would continue to trade under the existing EU-Cambodia arrangements.

“Arrangements for bilateral trade after Britain leaves the EU are to be determined in the period between now and exiting the EU. The United Kingdom’s new departments for international trade and exiting the European Union have made clear the UK’s desire to remain an open trading partner after we leave the EU. This would entail FTAs [Free Trade Agreements] with a range of trading partners,” the British Embassy said.

Following Tuesday’s meeting with Lord Puttnam, Mr. Hun Sen applauded the UK’s efforts to quickly shore up trade agreements.

Bilateral trade between Cambodia and Britain rose from about $750 million in 2013 to $800 million in 2014, according to the Ministry of Commerce. Cambodia’s total exports to Britain in 2014 were $56.45 million.

As part of his negotiations, Lord Puttnam also met with Foreign Affairs Minister Prak Sokhonn and Public Works Minister Sun Chanthol.

Soeng Sophary, spokesperson for the Ministry of Commerce, told Khmer Times yesterday the overtures from the UK were welcomed, but that it would take time before official trade agreements were signed, not least because the UK has yet to formalize the process of leaving the EU.

“Right now we both are in the preparation stage,” Ms. Sophary said.

“[Despite] knowing that the UK will be leaving the EU, the UK needs two years to remove itself from agreements that it has with the EU single market.”

“In the two year period, we don’t know what procedures can be taken. But we can still wait,” Ms. Sophary said.  

KHMER TIMES
CHEA VANNAK

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Tuesday, November 8, 2016

REMARKS BY POLLY DUNFORD, MISSION DIRECTOR, USAID CAMBODIA, TRAINING OF FACILITATORS ON THE ASEAN SME ACADEMY

Remarks by Polly Dunford, Mission Director, USAID Cambodia, Training of Facilitators on the ASEAN SME Academy

USAID/Michael Gebremedhin

  • H. E. Dr. Cham Prasidh (CHAM PRA SUDH), Senior Minister for Industry and Handicrafts, Royal Government of Cambodia;
  • Distinguished representatives and participants;
  • Ladies and Gentlemen

A very good morning to you all. It gives me great pleasure to be here and to extend a warm welcome to everyone at this two-day Training of Facilitators on the ASEAN SME Academy. First of all, let me convey my appreciation to H. E. Dr. Cham Prasidh, Senior Minister for Industry and Handicrafts, and his efficient colleagues in the General Department of SMEs and Handicrafts. The Ministry is a key partner in this event, co-hosting this training, and identifying all the participants. 

Speaking of you, the participants, I want to thank those of you who are from outside Phnom Penh, for your keen interest in the training that makes you willing to be away from your homes for a few days. It is great to have representatives here from around the country. 

Supporting Small and Medium sized Enterprise development has long been a priority of the Government of the United States as it has for the Royal Government of Cambodia. SMEs are the backbone of much of the global economy. Here in this country, SMEs account for 99 percent of all business firms and 73 percent of business employment, according to a recent study from the East Asia Economic Research Institute for ASEAN and East Asia. As such, a healthy, modern and dynamic SME sector is critical for economic growth, social progress, and regional integration.

But achieving rapid SME growth is not easy. Technological progress and the globalization of trade and investment have greatly increased the speed, efficiency and complexity of the commercial environment worldwide. All business firms, both large and small, must constantly evolve, improve, and upgrade so as to sustain their market shares and competitive advantage under the digital economy. 

Against that backdrop, the ASEAN SME Academy is an important and timely catalyst in support of the development and modernization of micro- as well as small and medium enterprises. The Academy was launched at the end of May 2016 and it provides a one-stop platform for self-paced learning and business networking as well as access to wide range of information resources. There are some 52 training courses and 350 web-links available from the Academy at present. Most of the courses are provided by Fortune 500 companies who are partners in the US-ASEAN Business Alliance for Competitive SMEs, a public-private partnership of USAID and the US-ASEAN Business Council. 

It is gratifying that ASEAN has highlighted the Academy as an important tool to promote entrepreneurship and human capital development in the “ASEAN Economic Community Blueprint 2025.” This Blueprint is part of the long-term integration roadmap entitled “ASEAN 2025: Forging Ahead Together” adopted by ASEAN Leaders at their Summit in Kuala Lumpur in November 2015. It is expected that participants in our Training of Facilitators programs will use what they learn to go on and train the many micro and small and medium enterprises within their own networks.   

This effort also fits in with the U.S.-ASEAN Connect initiative that was launched by President Obama on February 15, 2016 at the U.S.-ASEAN Leaders’ Summit in Sunnylands, California. This important initiative will support regional integration efforts of the ASEAN Economic Community and expand further upon the positive economic ties between the U.S. and ASEAN. The ASEAN SME Academy is part-and-parcel of the Business and Innovation Connect Pillars of the initiative. The Academy will serve as a leading regional online platform in providing training and custom-made business information to assist micro as well as small and medium enterprises to start and grow their businesses.  

So what should you expect to learn over the next two days? As part of this course, you all will be introduced to the training materials available from the Academy. These courses cover areas such as finance and accounting, management, marketing, business operations, technology, and trade and logistics. There will also be a discussion of other features of the Academy, including links to sources of support and information for the development and globalization of micro and small and medium enterprises. These sources include a large number of web-links to business service providers in ASEAN countries, with a focus on organizations that provide special services to women entrepreneurs. 

But this event is not just designed to teach you about the Academy. We are looking to you for feedback on the courses and materials that are offered so that the Academy can be improved over time. Together with your assistance and support, we can make sure that this unique platform becomes a premier and thriving regional training resource it is meant to be.

I wish you all a very successful training program. Thank you for your attention.

Phnom Penh

Issuing Country 

Cambodia

USAID

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Minister Criticizes Tycoon

Residents of the iconic White Building attend a meeting yesterday to discuss their options. KT/Mai Vireak

Ongoing land disputes between the Ministry of Land Management and the owner of development firm Phanimex are influencing White Building residents’ decision on whether to relocate or stay, according to Land Management Minister Chea Sophara.

Speaking to about 500 people at the ministry yesterday, he said development of the White Building requires clear solutions and transparency between the company and citizens.

If not, problems will occur like with the developments of Borei Keila and Boeung Kak.

“Our situation faces difficulties. If there is an unclear solution, it will become like the case of [Phanimex owner] Ms. Saphan’s handling of Borei Keila and Boeung Kak, which makes people lose faith and protest,” he said.

“Ms. Suy Saphan is very clever. She cheated first when I was Phnom Penh governor. She is very clever, she is good at speaking,” he added.
 

Mr. Sophara said Ms. Saphan was involved in more than 100 land disputes with citizens, which the ministry is now having to resolve. He said residents at the center of the disputes claim she has failed to live up to promises made to the government during the developments.

In response, Ms. Saphan rejected the accusations and stressed that development in Borei Keila was done in accordance with the desires of 1,261 families and housing has been built for them.

She called on the ministry to investigate residents’ claims for themselves.

“The buildings were constructed in accordance with the rules and procedures and we have already constructed the buildings for residents,” she said.

“And related to the land disputes, I bought the land legally. I bought the land in the Veal Sbov and Prek Kdam areas between 1993 and 1994 and have legal land titles.

“Now, I want [Mr. Sophara] to confirm this clearly because this problem relates to land borders, not land disputes.”

In 2003, the government gave more than 14 hectares of land in Borei Keila to Phanimex to construct 10 buildings for the more than 1,700 families being relocated, but the company has only built eight, resulting in protests.

Such examples have resulted in 554 families at the White Buildings being reluctant to accept an offer for their property to be redeveloped rather than taking a $70,000 payout.

White Building resident Kong Ratana said the development proposal sounded good, but expressed her fear that it will not be done successfully and she will lose her home, as has happened elsewhere.

“The people worry because we know about the Boeung Kak and Borei Keila cases. We are worried about this problem, but we will continue to discuss amongst ourselves whether to take the money or stay,” she said.

Citizen representative Dy Sophanaramany said that according to an initial survey of the 554 families, more than 90 percent want a payout over relocation for three years and the development of their existing property.

In his address yesterday, Mr. Sophara said that residents’ wishes would be respected, but urged them to consider the development offer. He stressed the development would be a success and the value of their properties would likely rise.

He also pledged to ensure that development would be clear and transparent, unlike that in Borei Keila and Boeung Kak, and that Japanese development company Arakawa was prepared to comply.

According to the Land Ministry, development of the White Building will cost up to $80 million. The top 12 floors of the 21-story building will be sold privately, with three floors of parking. White Building residents will get five floors of accommodation, while one floor will be set aside for commercial units.

KHMER TIMES
PECH SOTHEARY

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Cambodia Gets Ready Post-Obama

Hillary Clinton has told voters that she would not push the US to ratify the Trans- Paci c Partnership if she becomes the next US president. Reuters

The results from voting in the US presidential elections are still not known, and Cambodian government officials and business leaders expressed their concerns yesterday over how the next president might deal with trade with Cambodia, and regional free-trade agreements such as the Trans-Pacific Partnership (TPP).

Presidental candidates Hillary Clinton and Donald Trump have stated they would not push the US to ratify the TPP, negotiated under current President Barack Obama. The TPP in its current form does not include Cambodia.

The trade agreement was signed by 12 Pacific Rim countries in February, but has not yet been ratified by any of the countries, after seven years of negotiations that established a set of common trade standards for Pacific powerhouses such as the US and Japan.

Noticeably, China has been excluded from the TPP. While the TPP has received mixed support in a number of signing countries, it is unlikely to be adopted if it cannot be ratified by the US government.

Both Ms. Clinton and Mr. Trump have said during their presidential campaign that they do not support the TPP. In an interview with CNN Mr. Trump went so far as to claim that the TPP was being “pushed by special interests who want to rape our country.”

Soeng Sophary, spokesperson for the Ministry of Commerce, told Khmer Times yesterday that the government would continue to work closely with the US government on trade agreements, irrespective of who is the next president.

“Regardless of who would win the election today and lead the US in the next government mandate, Cambodia will still work and deal with the US as a country. The TPP has been under study by our side and it has been acknowledged that the TPP could have certain impacts on competitiveness of Cambodia among regional and global players,” Ms. Sophary said.

“Whether the TPP would be scraped or still be in place, is determined by the elected US president. We need much more time to learn more about the TPP before any moves are taken with regard to [Cambodia joining],” she added.

David Marshall, managing partner at research firm Mekong Strategic Partners, said yesterday that he hoped there would be little change in existing trade agreements between Cambodia and the US, which are favorable to Cambodian exports, especially from the garment industry.

“Both presidential candidates have indicated they do not support TPP.  So it will either be tossed aside or renegotiated in some other form.”

“This could make tariff-free eligible goods uncompetitive against other countries,” Mr. Marshall added.

Kang Monika, deputy secretary-general of the Garment Manufacturers Association of Cambodia, cautioned that regardless of the TPP, total exports of garments and footwear to the US has begun to drop, which is a more pressing concern.

“Both Trump and Clinton are politicians, so what they say before the election could be different from what they do after the election,” Mr. Monika said. “It’s more important for us to focus and work on our own national competitiveness than focusing on US politics which is quite hypothetical.”

According to US government figures, Cambodia’s total exports to the US declined more than seven percent in the first nine months of this year to $2.16 billion.

David Josar, deputy spokesman for the US embassy, explained that the US government was  pursuing the ratification of the TPP in all 12 member countries before looking for additional members.

“We have said previously that we would welcome other countries’ interest in joining the TPP in the future, provided that country is willing and able to meet TPP’s high standards. In addition, we are working with Cambodia to evaluate the pros and cons of joining TPP,” said Mr. Josar.

“But we can’t speculate on what the next American president will do.”

He added that recent trade agreements under the expansion of the Generalized System of Preferences program saw Cambodian-made travel goods receive duty-free status.

David Van, managing director of consulting firm Bower  Group Asia (Cambodia), said that while the TPP represents the main US trade policy in much of Asia at present, Cambodia’s focus should remain on the proposed Regional Comprehensive Economic Partnership (RCEP).

RCEP is a proposed free trade agreement (FTA) between the 10 member states of Asean and the six states with which Asean has existing FTAs – Australia, China, India, Japan, South Korea and New Zealand.

“Though suffering some hiccups, TPP would surely sail through when the next US president comes in. This is a crucial tool for American foreign policy irrespective of whom would be the next president,” Mr. Van said.

“Meanwhile, the Cambodian position has been to simply focus more on RCEP. Our resources are scarce and we can only focus on one major trade agreement at a time.”

Ms. Sophary confirmed that Cambodia was actively involved in RCEP negotiations.

“It is going to be an immense economic integration zone, namely a large regional market with dynamic potential for all involved countries.”

KHMER TIMES
MAY KUNMAKARA

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Nissan Plant to Make Debut

A Malaysia-based automobile conglomerate plans to set up a factory assembling vehicles and producing spare parts in Cambodia.

Tan Chong Motor Holdings CEO Tan Heng Chew spoke about his company’s wish to invest in the country after meeting Prime Minister Hun Sen on Monday.

The idea is for Nissan vehicles to be assembled and for parts to be made. No details have been revealed of the size of the investment or where the plant might be located.

Mr. Heng Chew said his company had assembled cars for 60 years and had experience in parts production for 45 years. It had factories in Vietnam, Malaysia and Myanmar.

“So we should consider putting factories in Cambodia to serve the Cambodian market and Asian market, as well as other markets in the world,” he said.

Mr. Hun Sen welcomed the investment plan.

His personal assistant, Eang Sophalleth, said: “The prime minister said that if this plant can produce or can be set up in the country, it would represent a successful industrial policy in the period from 2015 to 2025.

“The prime minister told Mr.  Heng Chew that setting up the Nissan brand in Cambodia would not only serve the Cambodian market, but would cover the Asean market with a population of 700 million people.”

About 150 Malaysian companies have invested in 131 projects worth $1.7 billion in total in Cambodia, a trade specialist at the Malaysia External Trade Development Corporation said.

KHMER TIMES
SUM MANET

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Foreign Remittances Grow to $1.5 Billion

A Cambodian migrant worker in a Bangkok construction site. A big slice of their income is sent back home as remittances for their families. Reuters

Foreign remittances from migrant workers and Cambodian businessmen based overseas are expected to grow to over $1.5 billion this year, according to Acleda bank.

So Phonnary, executive vice president of Acleda, told Khmer Times yesterday that this year the bank had been recording an average of 12,600 transactions per month of money coming in from overseas.

“These transactions are about $129 million a month,” she said.

Ms. Phonnary said the money transferred from overseas to Cambodia were mainly from migrant workers and businessmen.

“Cambodian migrant workers and businessmen based overseas send money home using Acleda’s SWIFT system and also through Western Union. Migrant workers, though, prefer Western Union because it is fast,” she said.

Ms. Phonnary pointed out that the foreign remittances were mostly from Thailand, Malaysia, South Korea, the US, France and Canada.
 

“For those who are sending home money using Acleda bank’s SWIFT system, we will charge them a commission fee of 0.17 percent of the amount transferred,” she said.

Ms. Phonnary said Acleda is trying to encourage its customers who work overseas – especially Cambodian businessmen – to use internet banking to send money home.

“This is faster and much more convenient. They don’t have to line up at banks and can transfer money any time,” she said.

The increased need for low-skilled workers in countries such as Thailand and Malaysia and the relatively high wages there are pull factors for many Cambodians – who are unemployed or underemployed in the country.

“A big slice of their hard-earned income is sent back to their home country as remittances for family, while some is saved for contingency in the host country. The remittances, which directly benefit individual households, are widely acknowledged as a major and stable source of external finance for developing countries,” said the International Labor Organization (ILO) in a recent report.

“Migrant workers’ remittances have the potential to spur economic development in the poor migrant-sending communities of such countries,” added the report.

The ILO report also highlighted the importance of migrant workers having access to financial services, such as money transfer intermediaries, that are affordable and safe.

The growth of the foreign remittances market is also attracting local mobile payment companies, which seem to be gearing up to extend their payment services overseas.

One of them is TrueMoney, a subsidiary of True Corporation in Thailand, which is moving to expand into international mobile payment services through money transfers – targeting migrant workers working in the country.

“We will start our cross-border money transfer operations in 2017 that will enable Cambodian migrant workers in Thailand to send money home,” Se Sokpheakreak, marketing manager of TrueMoney in Cambodia, told Khmer Times.

Mr. Sokpheakreak said TrueMoney aims to attract those unbanked migrant workers in Thailand to help them send remittances to their families and pay lower fees than the existing informal means.

KHMER TIMES
SOK CHAN

Read more ➤

Friday, October 28, 2016

Remarks by U.S. Ambassador to ASEAN Nina Hachigian on the “U.S. Rebalance to Asia” at the Royal University of Phnom Penh

US Embassy

Thank you very much, Julie, for that generous introduction and thank you, CISS President Kung Phoak and Excellency Suos Yara!

Good Morning Excellencies, esteemed guests, ladies and gentlemen and thanks to you all for making time to be here with me today.

I am very honored to be hosted today by the Cambodian Institute for Strategic Studies, a leading research institution, and the Royal University of Phnom Penh, Cambodia’s oldest university.

I want to sincerely thank them both for their hospitality.

Being from the research and think tank world myself, I feel very much at home among you.

I truly love my current job, but there are times I wish I had the luxury that many of you do, of stepping back from the day to day and reflecting on broader ideas and trends.

Because they can take the woman out of the think-tank but they can’t take the think-tank out of the woman, I will take on two larger ideas today:

Why rules are important to foreign policy and why ASEAN matters to the U.S.

I recognize, though with humility that it may be challenging to envision the bigger picture when I am busy drawing a small part of it myself.

I lead the U.S. Mission to Association of Southeast Asian Nations (ASEAN), and we partner with ASEAN and others to advance U.S. interests in a peaceful, prosperous, and integrated Southeast Asia that respects the rule of law, upholds the dignity of its people and actively addresses regional and global challenges.

Almost 50 years ago, ASEAN formed around the aspiration that through “the collective will of the nations of Southeast Asia” they would “bind themselves together in friendship and cooperation and, through joint efforts and sacrifices, secure for their peoples and for posterity the blessings of peace, freedom and prosperity.”

ASEAN has long been a foundation for prosperity and order in the Asia-Pacific.  And the United States, with over 12,000 kilometers of Pacific coastline, has been ASEAN’s partner for nearly forty years.

Our national interests demand that we keep supporting ASEAN and the economic, security, and political order that it sustains, now and into the future.  This truth was apparent to President Obama from the very start of his administration.

When he initiated the Rebalance to Asia, he not only recognized that America needed to pay more attention and be more engaged in Asia, he also understood that within Asia, Southeast Asia was not getting the focus it deserved. Together we have accomplished a great deal in the last eight years.

The United States became the first non-ASEAN country to appoint a dedicated Ambassador to ASEAN.  We opened a separate Mission to ASEAN.

President Obama was the first U.S. President to meet with all ten ASEAN leaders, and he has attended the U.S.-ASEAN Summit and the East Asia Summit multiple times.

In fact, he has come to Southeast Asia more than any other U.S. President has, and became the first sitting U.S. president to ever visit Laos.

ASEAN and the United States elevated their relationship to be strategic partners in 2015, and then we had the first stand-alone U.S.-ASEAN Summit in California at Sunnylands this past February where Prime Minister Hun Sen and all the other leaders of ASEAN gathered for two days of intimate conversation.

But even with all that, I think the best days of the U.S.-ASEAN partnership are still to come.

That is because ASEAN has a very bright future ahead as it builds the Community of Opportunity.

I have met hundreds of ASEAN’s talented young leaders, and I am fully confident that their creativity, ingenuity and passion will propel this region to new heights.   The next generation of ASEAN leaders, including many of you, will continue to forge peace, within ASEAN and within Asia.  You will triumph over intolerance, holding violent extremism at bay.

You will work to ensure that women and disadvantaged populations have equal opportunity.  You will pull millions more out of poverty through strong economic growth, stimulated by the ASEAN Economic Community (AEC) and a high quality trade network.

Under the AEC of the future, ASEAN economies will be highly integrated, relying on each other for markets and suppliers.

Students will be free to travel throughout ASEAN to get an education, and foreign investment will continue to help create jobs, provide training and offer technology.

It will be easy to start a business, and small businesses will be integrated into the regional economy.

More and more ASEAN citizens will have access to the open Internet and other technologies–to find markets for their products and new ways to solve problems.

At the same time, ASEAN leaders will work hard to make the water in ASEAN cleaner, the sky over big cities bluer, and, in turn, citizens healthier.

They will ensure forests, oceans and the Mekong river remain sources of food and livelihood for millions in the region by finding ways to use them sustainably.

The next generation will continue to convene all the powers in Asia at the ASEAN table to talk through our common challenges and our differences.

To achieve this vision which I have just outlined, which is the vision that ASEAN articulated in the ASEAN Community Vision 2025 last year, the U.S. will be by your side, helping ASEAN to achieve all this and more.

Today’s ASEAN has given its future leaders a running start.  ASEAN has kept the peace for nearly 50 years.

But ASEAN knows that to reach the bright future that its young people want to create, it must also realize the very first aspiration in the Political-Security Community Vision, which is this:

“A rules-based community that fully adheres to ASEAN fundamental principles, shared values and norms as well as principles of international law governing the peaceful conduct of relations among states.”

Now why is this notion of rules and laws so important that ASEAN chose to make it the first goal?

It’s because, as we know, within countries, developing rule of law spurs economic growth by reducing corruption and giving local and foreign investors the predictability and transparency they need.

It also guarantees that the state cannot deprive citizens of their rights without due process.

But Asia, and, the rest of the globe, also needs common rules of the road among nations.

The ASEAN Economic Community, the AEC itself, is a project to create a platform of common rules, laws and standards so ASEAN can enjoy the benefits of closer integration.

High standards trade agreements, like TPP, create a race to the top.

Common rules facilitate investment.

We need rules among nations for security reasons too, because the major threats to a bright future come from forces that no nation can battle on its own-globally networked violent extremists, climate change, virulent viruses, nuclear proliferation, narcotics trade and human trafficking.

But for nations to cooperate effectively together on these tough challenges, they need trust.

It takes trust to share sensitive information about terrorist activity, to believe each other’s commitments on climate change, to prosecute criminal networks across national boundaries.

Without trust, cooperation stalls.  Now, you students of international relations know that trust is hard to build among nations, especially among nations, as in the Asia-Pacific, with different histories, geographies and political systems.

But ASEAN has done just that. Regional institutions like ASEAN as well as global institutions like the UN, IAEA, WHO, and Interpol help to create this trust by establishing rules of the road and by coordinating cooperation.

If nations know that they can count on others to follow the rules and fulfill their own commitments, then they will too.  That predictability and sense of fairness creates trust that fosters cooperation.

There is a final reason that international law and common rules are important.  We in the Asia-Pacific are fortunate to live in period that is not dominated by direct conflict among nations. But the memories of earlier decades of strife are still fresh.  So we cannot be complacent.  We have to prevent conflict among nations proactively, not assume peace will sustain itself.

A step we can take to preserve peace is for all nations to respect international law and to resolve their disputes through peaceful legal and diplomatic processes.

That is why the United States viewed the July 12 arbitral award on some of the disputes in the South China Sea as hopeful and important.

It showed that humanity has created peaceful ways to manage and resolve disputes among nations when diplomacy isn’t working, which it wasn’t.  No longer does might automatically make right. To keep the peace and to build trust, to reap the economic benefits of stability, nations must heed their obligations under international treaties.  The U.S. has not ratified the Law of the Sea Convention, though I hope Congress will one day, but the United States does follow its provisions as customary law.

Of course, the existing web of rules and institutions that we have is not enough.  We will need to establish new guidelines for the places where the law isn’t yet fully defined, like cyberspace and outer space and ungoverned areas of the high seas.  We must strive to agree on norms, standards and law so a mere accident in one of these arenas cannot trigger a crisis and so we can, together, bring malevolent actors to justice.

This is why we hope ASEAN and China really do make a speedy and meaningful progress on a binding Code of Conduct as they announced in Laos in September.

Diplomacy, bilateral negotiations—they are absolutely critical, no question.  But when nations respect international law and common rules, it creates a broad sense of fair play because all countries have the same responsibilities.   Adhering to rules and norms will tame rivalry and foster cooperation toward the Asia-Pacfic’s bright future.

So, in short, ASEAN plays a vital role in advancing rules and norms as the basis for order among nations in the Asia Pacific.

In the Sunny lands Declaration, leaders pledged “Firm adherence to a rules-based regional and international order that upholds and protects the rights and privileges of all states.”  Laws, rules and norms provide the connective tissue of the ASEAN Community.  It is through their harmonization that countries are integrating and creating trust.   And trust is what forms a true Community. People ask me why ASEAN matters to the United States.  And what I’ve been discussing is one key reason—ASEAN shares our commitment and belief in the importance of rules. But there are many other reasons that motivate the U.S. commitment to our strategic partnership with ASEAN, and I will talk about three.

First, our relationship with ASEAN promotes shared prosperity.  ASEAN is America’s fourth largest trading partner and America is the largest cumulative investor in ASEAN. Our relationship has created millions of jobs in all ten countries of ASEAN and in every one of our 50 states. So the United States has a great deal at stake in ASEAN’s economic success.

For this reason, at the special ASEAN-U.S. Summit at Sunnylands in California earlier this year, President Obama announced US-ASEAN Connect, a strategic framework that will utilize American expertise to help ASEAN achieve its goals of an innovative and dynamic integrated economy.

Through Connect we will continue to offer training to ASEAN Small and Medium Enterprise owners and entrepreneurs, conduct workshops on the Trans Pacific Partnership for ASEAN member states who are not yet signatories, help ASEAN establish a customs “Single Window” to cut red tape, support women entrepreneurs, and host programs like the Innovation Challenge, sponsored by USAID, Intel and Cisco, in which young people are competing to design solutions for improving food security in ASEAN.

A second reason the United States values ASEAN is its role as the central architect of the regional security order in the Asia-Pacific.  ASEAN institutionalizes cooperation, threatens no one, dedicates itself to non-violence and seeks strategic independence.

ASEAN forms the stable center of a region where multiple big powers—China, Russia Japan, India and the United States–each have a large stake.

Now, let me be clear that ASEAN and ASEAN countries seek to have good relationships with all the major powers.  And that is a good thing. There is not a zero-sum dynamic at work here.

If a relationship between one big power and an ASEAN country improves, it does not mean that relationships with all the others get worse.

And the major powers have different issues on which we are more or less aligned with the ten countries and with ASEAN as a whole.  So that is par for the course. But ASEAN also has a role in ensuring that big powers act according to what is best for the region.

Whereas it could be difficult for any individual ASEAN country to stand up to a big power when it takes actions that increase tensions and risks, ASEAN as a group can and has, and the region is better for it. ASEAN also coordinates action on key transnational challenges like terrorism, human trafficking, and illegal fishing.

Last but not at all least in the reasons ASEAN matters is its wonderful people.  As President Obama said, the Rebalance is “a partnership not just with nations, but with people…for decades to come.”  And another central part of ASEAN’s Community vision is for it to be “people-centered.” Our Young Southeast Asian Leaders Initiative, YSEALI, is helping ASEAN to create an ASEAN identity from the ground up.

Now nearly 100,000 young leaders from all ten ASEAN countries can interact with their peers both online and in regional workshops on topics like the environment, green economies, oceans, building civil society, and women’s leadership.

Some even have a chance to talk with the President of the United States at yearly Summits in ASEAN, like in Laos.  At that event last month, President Obama urged YSEALI participants to lead the efforts to tackle climate change and other regional challenges.

YSEALI is just one of our many programs for young people in ASEAN.  For example, several weeks ago in Jakarta, we welcomed our third group of ASEAN-U.S. Science and Technology fellows—ASEAN scientists whom the U.S. sponsors to spend a year in their own government ministries, to support science-based policy-making.

Dr. Hul, the Director of the Research and Innovation Center at the Institute of Technology of Cambodia, through his S&T Fellowship, will learn about policy making for water quality treatment and management.

Cambodian researchers have also examined diverse topics ranging from Biodiversity to Biology Education to Energy Efficiency as U.S. – ASEAN Fulbright Scholars.

The United States also supports women’s opportunity in ASEAN.

I have met many of ASEAN’s dynamic women leaders who have showed me how ASEAN women are preparing to take advantage of the ASEAN Economic Community to participate more fully in the market place and in society.  And I am looking forward to visiting the WeCreate Center for women entrepreneurs later today.

In addition, the ASEAN-U.S. Science Prize for Women recognizes a promising, ASEAN-based, early-career woman scientist in her efforts to advance regional science and technology capacity, and I’ll be headed to Siem Reap tomorrow to help award this prize, sponsored by one of our companies, UL.

Most recently, just last week, I had the pleasure of meeting 4 young Cambodian women leaders when they joined us in Jakarta for the U.S. – ASEAN Women’s Leadership Academy for YSEALI.

My mission worked on the pilot project last year and helped to execute this next phase, so when President Obama announced the Academy at his speech in Vientiane I was proud.  But my pride and enthusiasm only grew when I met this year’s participants.  Lina, Sanary, Sorphorn, and Srey represented Cambodia very ably.

These smart, motivated, talented women – the cream of the crop of private and public sector, contributed enthusiastically with 36 stars from the 9 other ASEAN Member States, forming professional and person relationships that know no borders or bounds.

Along with all the good news and cooperation, challenges in this region remain.  But even when it comes to difficult issues, the United States supports ASEAN centrality, unity, integrity and credibility.

The United States will continue its partnership with ASEAN because of its people, because of our close economic ties, and because of its dedication to being a rules-based community that respects international law.

We want Asia to continue to enjoy the peace that has allowed so many to prosper, and ASEAN is a critical part of that.

So through the rest of the Obama Administration, through our 40th anniversary year next year under a new Administration, and for decades to come, you can count on us.

The United States will remain steadfast in its support – and aspirations – for the ASEAN Community, ASEAN Centrality and the people of ASEAN.

Read more ➤

Thursday, October 27, 2016

Cambodia Economic Update, October 2016: Enhancing Export Competitiveness

The World Bank

Key Findings

  • Growth is projected to reach 7 percent in 2016, which is slightly higher than an earlier estimate of 6.9 percent, propelled by exports, construction, and government consumption. Tourism eased while agriculture is likely to expand due to better weather conditions.
  • The economy is expected to sustain a high growth trajectory, growing 6.9 percent in 2017 and 2018, partly due to government spending.  Solid garment exports should continue while the construction sector is expected to slow only gradually. The tourism and agriculture sectors may expand modestly.
  • Resilient exports and depressed oil prices contributed to a narrowing of the trade deficit, supporting the country’s overall external position.
  • Although there are signs of slowing, in particular in the micro-finance sector, the banking sector’s credit growth remained high at 26.9 percent year-on-year by mid-2016.
  • Expansionary fiscal policy started in 2016 while strong revenue collection continued. The overall fiscal deficit (including grants) is expected to widen to 1.2 percent of GDP in 2016.
  • In the medium term, the favorable outlook is likely to continue, strategically underpinned by regional integration.
  • Risks include fallout from a rise in US interest rates, slower global growth and potential uncertainty related to commune and general elections in 2017 and 2018.
  • Poverty is expected to continue declining over the next few years, driven mainly by growth in the garment, construction, and services sectors in urban areas. The agriculture sector, which was the main driver of poverty reduction in the past, has recently eased.

Policy Options

  • Devising a concrete plan to improve competitiveness and diversify export sectors, given the potential negative impacts on garment exports of the EU-Vietnam Free Trade Agreement.
  • Promoting local participation in the garment industry among domestic investors or encouraging more joint ventures between domestic and foreign investors.
  • Migrating the risks associated with the construction boom. Positive initial steps have been made to monitor and regulate housing development.
  • Developing tourism further as a growth engine by diversifying tourist attraction sites beyond the Angkor Wat complex. 
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US on Sidelines: Russel

KHMER TIMES
SAFIYA CHARLES AND ROS CHANVEASNA

Daniel Russel with acting opposition leader Kem Sokha. KT/Mai Vireak

The US government’s most senior Asian diplomat has said the Obama administration will not take sides in the country’s upcoming elections despite the perceived increase in pressure being placed on opposition party members by the government and requests from the Cambodia National Rescue Party (CNRP) to monitor election preparations as well as the aftermath at the polls.

The message comes as Assistant Secretary of State for East Asian and Pacific Affairs Daniel Russel closes a week-long, three-nation tour of the region.

He visited the Philippines – where President Rodrigo Duterte’s recent comments on a “separation” from the US have led to confusion and uncertainty – and stopped in Thailand before meeting with government officials, CNRP party members and civil society organizations in Cambodia yesterday.

After a closed-door meeting between the US envoy and Minister of Foreign Affairs Prak Sokhonn, ministry spokesman Chum Sounry said the two officials discussed the current political climate and ways of strengthening bilateral ties between the two countries, which now includes joint military cooperation, enhanced trade tariffs and educational exchange programs.

Addressing a group of reporters, Mr. Russel said the US would not takes sides in the country’s political conflict, but instead would play a conciliatory role to “extend a helping hand” in the escalating war of words between the two opposing political factions.

“Rather than pass judgment, we are here to consult and put heads together with our Cambodian counterparts on how we can advance the goals of due process, rule of law and economic growth,” he said.

Mr. Sounry confirmed that the US official had assured Mr. Sokhonn that the purpose of his visit was not to criticize the Cambodian government, but to “discuss and exchange ideas.”

The country is approaching its sixth election since the United Nations, UNTAC-sponsored ballot in 1992 that saw the peacekeeping body temporarily take control of the country’s administration, carrying out its first democratic elections since the takeover by the Khmer Rouge.

Analysts have questioned whether the current government is moving the country backwards rather than forwards in the lead-up to the next round of elections, skeptical of whether it will uphold the right to free and fair elections drafted in the Paris Peace Accords and ratified by Cambodia 25 years ago.

The recent exile of opposition party leader Sam Rainsy, announced last week, under the direct order of the Council of Ministers – which immediately drew the ire of human rights officials both at home and abroad – has only fueled more doubt.

Mr. Rainsy was living in self-imposed exile in France before the government announced it would do everything in its power to keep him from returning to the country – a direct violation of the country’s constitution.

CNRP vice-president Kem Sokha still remains holed up at the party’s headquarters facing five months in prison after he was convicted in absentia last month for failing to appear in court to give testimony in two cases related to an affair with his alleged mistress.   

“If in the upcoming elections Sam Rainsy is not here [then] Kem Sokha will not be able to campaign. It’s a hard thing to accept,” said CNRP official Yem Ponhearith.

To this end, Mr. Russel was optimistic, stating that past actions did not necessarily dictate the future and he placed his faith in the power of civil society – who he contended had benefited from a growing economy and better education.

“I’m a believer in human progress, I’m a believer that people learn from their experiences and learn from their mistakes and I’m a believer in the power of civil society,” he said.

In spite of concerns on the strength of Cambodia’s democracy raised on a recent visit by UN Human Rights Special Rapporteur Rhona Smith – who referred to the government’s apparent use of the judiciary to execute its will as “discriminatory and politicized” – Mr. Russel lauded the country’s positive, albeit measured, progress – affirming that 2016 had been a big year for Cambodia with trade, tourism, investment and education all on the rise.

Looking to the region, Mr. Russel has played a significant role in crafting the US’ “pivot to Asia.” The rebalance has served as a cornerstone of the Obama administration, seeking to strengthen the world power’s relationship with Pacific nations as China flexes its muscles among the countries in the region.

Expressing Southeast Asia’s vital importance to the US, he cited the partnerships within Asean as benefits of progress that were facilitating growth among Cambodia and its allies.

“The pivot isn’t a sport where we keep score on zero sum basis. It is a strategic engagement by the United States in the stability and growth of the Asia-Pacific. The rebalance isn’t something that the United States is doing to other countries, we are participating,” he said.

“One, because we are a Pacific country. Two, because our economic future is inextricably linked to that of the region and number three, because stability and security in the Asia-Pacific benefits not only the people of Asia, but also the people of the United States.”

Yet these newfound relationships have shown cracks in recent months. A growing rift between the Philippines and the US has threatened to challenge the seven-decade alliance with the island nation.

The country has threatened to put an end to the Enhanced Defense Cooperation Act, a bilateral defense deal that facilitates a military partnership between the two.

The State Department official glossed over any potential snares, admitting that relations between the two countries hadn’t always been amiable and included “some scratchy chapters” before reassuring that the US would remain a supportive and friendly ally.

“Our response to the Philippines is that they can count on the United States as a friend, as a partner, as an ally,” he said. “We share tremendous common interests and we stand ready to work with the government in the areas where the government seeks to work with us – very much the approach we take with Cambodia as well.”

To the likely dismay of Cambodian opposition supporters, Mr. Russel’s assertion signals that the US will likely apply the same “hands-off” approach in the Kingdom.

Read more ➤

Boom Times in Preah Sihanouk

KHMER TIMES
SUM MANET 

One Preah Sihanouk province’s greatest asset is its hub for sea transportation which makes it attractive for businesses. Supplied

The property sector in Preah Sihanouk province seems to be booming, thanks to new project developments, the growth in tourism and a twinning program between the province and Zhencheng district in China’s Guangdong province.

“The government plans to build a strategic location to link Cambodia with China in the ‘One Belt One Road’ economic corridor. For that reason, we have chosen to link Preah Sihanouk province with China’s Zhencheng district,” said Minister of Commerce Pan Sorasak when he met with Donica Pottie, the Canadian ambassador to Cambodia last week.

“This cooperation in the twinning program will enable us to build more vocational educational centers, using Chinese expertise, and also more infrastructure for development projects in the near future,” said Mr. Sorasak.

Since 2013, the “One Belt One Road” initiative has become the centerpiece of China’s economic diplomacy. The essence of the initiative is to promote regional and cross-continental connectivity between China and Eurasia.

Sorn Seap, founder and director of Key Real Estate and executive vice president of the Cambodian Valuers and Estate Agents Association, said Preah Sihanouk province has a very strong potential to be a powerhouse in the regional property sector.

“It’s got a special economic zone, a light industrial area, a deep-sea port, coastal tourism and healthy property development,” said Mr. Seap. “These are all the right ingredients for the province’s development.”

Mr. Seap said he expected the population of Preah Sihanouk province to grow, and as such there would be more demand for private properties, warehouses and industries.

“In the property sector, investors can more or less gain profits – depending on the location of the projects and what competition they face from other developers,” he said.

Mr. Seap pointed out that the most successful projects in the province would be the development of industries, factories and warehouses.

“Obviously we will see a lot of development [in the province]. One of the greatest assets Preah Sihanouk has is a hub for sea transportation, that makes it attractive for businesses. Also, it is a boost to the property sector,” he said.

Recently the Ministry of Public Works and Transport announced a new highway from Phnom Penh to Sihanoukville, which will cost $1.9 billion. The funds are from China’s concessional loan and the road construction is due to begin next year. On June 18, HLH Group announced its entry into the Cambodian property market with the launch of Camhomes, a property development firm targeting the mid-income market in Phnom Penh, Sihanoukville and other major cities.

A representative of HLH Group, told Khmer Times yesterday the project is underway and 80 percent of homes in the Sihanoukville project had already been sold.

According to Lucky Realty’s research, industrial land prices in Preah Sihanouk province, along National Road 4 ranged from $1,000 to $1,500 per square meter, while land prices along the beach with property titles were between $1,000 and $1,200 per square meter. Land prices for residential areas, along the main road, were between $500 and $700 per square meter.

Read more ➤

SMEs Urged to Register

KHMER TIMES
SOK CHAN

A solar-powered tuk-tuk used as a coffee cart in Phnom Penh. The Cambodian government wants all small business enterprises in the country to be registered legally. Reuters

The country’s Small and Medium Enterprises (SMEs) have been urged to register with the Ministry of Industry by early next year, in order that government policy intended to aid competitiveness can be more effective.

Of the 530,000 SMEs in Cambodia, many have been exempt from registration so far due to their small size, explained Laim Kimleng, director-general of the general department of SMEs and handicraft at the ministry. He called these businesses “micro-enterprises.”

“For the previous years, micro-enterprises across the country which only had investment capital up to $3,000 were not required to register with the ministry, so there was no data about those micro-enterprises,” he said.

“But since the ministry wants to have a clear data in order to set policy to help those micro-enterprises to boost their competitiveness, we require them to register with us,” Mr. Kimleng said.

“If we don’t know how many enterprises there are, how can we make a policy to support them?” he added.

Of the roughly 150,000 SMEs involved in manufacturing and handicrafts that he oversees, he said only about 40,000 had been so far registered with the ministry.

The registration is required to better inform the ministry ahead of a planned two-year survey of SMEs, Mr. Kimleng said. This can be done at the commune level, and does not require any complicated forms, he said.

“We have delegated this task to commune councils to register the micro-enterprises in their communes because we think that this reform will provide us with clear data, allowing us to cluster similar kinds of small enterprises,” he said.  

“We are minimizing the unimportant administration letters or regulations, but we will enforce technical regulatory tasks, in order to compete with other Asean countries.”

However, in an apparent blow to the ministry’s efforts, Te Taing Por, president of the Federation of Associations for Small and Medium Enterprises in Cambodia, said that SMEs were waiting for the policy to be completed before registering.

“We will push small enterprises to register when there is a policy for SMEs. But right now, why do we have to force them when there is no policy? ” he asked.

Keo Mom, president of Cambodia Women Entrepreneurs Association, told Khmer Times that registration was important for small companies, and urged businesses owners to comply with the ministry’s request.

“If SMEs are illegal, they cannot expand their businesses which will hurt their growth,” she said.

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NBC, CRF Offer Rice Loan Support

KHMER TIMES
MAY KUNMAKARA

To qualify for the government’s emergency loan, millers need large stocks of stored rice to put up as collateral. Reuters

In an effort to help small and medium-sized rice millers and exporters that are presently unable to provide suitable collateral to qualify for the government’s emergency $27 million rice loan, the National Bank of Cambodia (NBC) has joined with the Cambodia Rice Federation (CRF) to call on the financial sector to be more flexible.

According to a joint report released yesterday, the NBC and CRF will work together to ensure that millers are able to use other methods to secure loans to allow them to buy and process paddy rice during the ongoing harvest.

At present, to qualify for the government’s loan, distributed via the Rural Development Bank, millers need large stocks of stored rice to put up as collateral. That loan was unveiled last month as an effort to combat falling rice paddy prices and cash-flow issues that have caused unrest in the rice industry during peak harvest time.

“Based on the results of our research into increasing the financing for the agricultural sector, the banks and microfinance institutions should consider the capability of repayment rather than collateral by using data from the Credit Bureau, which analyzes and evaluates customers and could pave the way for those who lack suitable collateral to get access to loans,” the report says.

“The acceptance of only non-movable assets [land, buildings etc.] as collateral can exclude customers who don’t have fixed assets...so the financial institutions should consider inventory financing and warehouse receipt financing to be one form of giving loans to customers,” it adds.

Bun Mony, CEO of the newly formed Sathapana Bank, welcomed the initiative but stressed that the NBC must further clarify how to accept moveable assets as loan collateral.

“Of course, some banks or MFIs [microfinance institutions] already do this but not widely. We don’t mind treating movable assets as the collateral in order to give more loans to those millers or exporters, but we also want the National Bank of Cambodia to make sure that we have the proper regulations to avoid any risks,” Mr. Mony told Khmer Times.

“Actually, in many other countries they accept movable assets as the collateral for loans but we are not clear on how to control and manage them [in Cambodia] if the owners sell them without informing us – that is the risk. But, if our regulator can guarantee that, we are keen to do it.”

A leading rice miller and exporter, who asked not to be named, said that the idea has been discussed for almost five years already with input from major multilateral institutions such as the World Bank and the Asian Development Bank.

“It will not make any different by just recommending this system, as what we really need is a legal framework which includes insurance to cover the risks, and guarantees from the government.”

“It is true that most banks still prefer fixed assets for financing, but the biggest issue or challenge is not about financing but the lack of low-interest financing that the millers and exporters are crying out for.”

“We are competing against regional and global players like Vietnam, Thailand and India for the same market so cost competitiveness is the biggest issue that Cambodia needs to overcome if we want to survive and able to realize the  one million ton [export] target,” they said.

According to the joint report, the financial sector has disbursed some $2.3 billion – $1.2 billion from banks, and $1.1 billion from MFIs, to the agriculture sector. Seventy percent of loans from banks, and 22 percent from MFIs went to rice millers and exporters.

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Wednesday, October 26, 2016

ADB President Calls for Expanded CAREC Agenda to Meet New Challenges

ADB

ADB President Takehiko Nakao, Pakistan Prime Minister Mian Muhammad Nawaz Sharif, Finance Minister and ADB Governor Ishaq Dar, and ADB VP Wencai Zhang with heads of delegation at the opening of the 15th CAREC Ministerial Conference in Islamabad.

ISLAMABAD, PAKISTAN – Asian Development Bank (ADB) President Takehiko Nakao concluded a 2-day visit to Pakistan today. He met with Prime Minister Mian Muhammad Nawaz Sharif; the Finance Minister and ADB Governor, Senator Ishaq Dar, and other senior officials; and attended the 15th Central Asia Regional Economic Cooperation (CAREC) Ministerial Conference, which welcomed Georgia as its 11th member.

At the Ministerial Conference, CAREC Ministers agreed to formulate a new long-term strategy for CAREC to enhance its relevance in the context of changing economic and development conditions. The CAREC Secretariat will initiate work on CAREC 2025 immediately with a view to completing it by 2018.

The CAREC members comprise Afghanistan, Azerbaijan, the People’s Republic of China (PRC), Georgia, Kazakhstan, Kyrgyz Republic, Mongolia, Pakistan, Tajikistan, Turkmenistan, and Uzbekistan. 

In a special address at the meeting, Mr. Nakao said CAREC had made a valuable contribution to the region’s development but its future will depend on how it adapts to changing economic and development conditions in the region and beyond. 

“Regional infrastructure and trade facilitation will likely remain the core of the program but an expanded agenda and new approaches need to be considered,” he said. “With our experience promoting regional cooperation in other parts of Asia and Pacific, ADB is well placed to support CAREC in any new directions the program identifies.”

ADB functions as the Secretariat of the CAREC Program, which promotes regional cooperation in transport, energy, trade facilitation, trade policy, and other key sectors of mutual interest. Cumulatively, the CAREC Program has mobilized $28.9 billion of investments since it was set up in 2001 until end of September 2016, over a third, or $10.1 billion, of which was financed by ADB. 

ADB has helped CAREC countries adapt to changing economic conditions. ADB provided countercyclical support to Kazakhstan and policy-based lending to improve the business climate in the Kyrgyz Republic and Tajikistan, and to promote domestic resource mobilization in Georgia. ADB’s continued support to small and medium enterprises, infrastructure investment, and skills development aim to boost longer-term growth.

In a joint statement, the CAREC Ministers noted progress on transport, having reached 93% of their road building or upgrading target to 2020 and adopting a road safety strategy for 2017-2030 that aims to at least halve road fatalities in CAREC by 2030 compared to 2010 levels. This will save an estimated 23,000 lives.

Along the six CAREC transport corridors, 7,230 kilometers of road and more than 4,500 kilometers of rail have been built or rehabilitated. The ministers also adopted a railway strategy to 2030, prioritizing six railway corridors aligned with trade routes. 

They were pleased with the status of the Almaty-Bishkek Corridor Initiative as the pilot corridor for CAREC economic corridor development and endorsed an investment framework for the corridor.

On trade policy, they congratulated Kazakhstan and Afghanistan on acceding to the World Trade Organization, and called for deeper collaboration with international development partners, especially in the areas of sanitary and phytosanitary measures, and technical barriers to trade. 

They also noted progress on major energy projects coming on stream. 3,835 kilometers of power transmission lines have been constructed during 2013-2015, supporting the expansion of energy trade between Central Asian countries endowed with surplus energy and energy deficit countries in South Asia, including Afghanistan, Pakistan, and beyond. Countries are jointly planning and constructing energy infrastructure. One important example is the Turkmenistan-Uzbekistan-Tajikistan-Afghanistan-Pakistan interconnection program funded by ADB. 

Through the ADB-supported CAREC Institute, based in Urumqi, PRC, the program is undertaking capacity building and knowledge work for regional cooperation.  An agreement will be signed on the sidelines of the Ministerial Conference establishing the Institute’s legal presence as an intergovernmental organization.  

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB in December 2016 will mark 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2015, ADB assistance totaled $27.2 billion, including cofinancing of $10.7 billion.

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Vietnam: Zero Duties for Rice, Tobacco

KHMER TIMES
SOK CHAN 

Commerce Minister Pan Sorasak (far left) and Vietnamese Minister of Industry and Trade Tran Tuan Anh (far right) together sign the bilateral trade enhancement agreement. Prime Minister Hun Sen (third from left) and Vietnamese Prime Minister Nguyen Xuan Phuc (fourth from left) act as witnesses. Supplied

Vietnam agreed yesterday to waive all duties on a total of 300,000 tons of rice and 3,000 tons of dried tobacco exported annually from Cambodia to the country, according to a bilateral agreement signed at two back-to-back summits to promote economic cooperation in the Greater Mekong Sub-region.

The bilateral trade enhancement agreement between Vietnam and Cambodia, signed in Hanoi by Commerce Minister Pan Sorasak and the Vietnamese Minister of Industry and Trade Tran Tuan Anh at the 7th Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy Summit (ACMECS 7) and the 8th Cambodia-Laos-Myanmar-Vietnam Cooperation Summit (CLMV 8), also gives special preferential treatment to 39 export items from Cambodia and 29 items from Vietnam.

Soeng Sophary, spokesperson at Cambodia’s Ministry of Commerce, told Khmer Times yesterday that the bilateral agreement between Cambodia and Vietnam had been signed several years ago, but had expired recently.

“So both parties took advantage of these summits to renew it, and at the same time add new items that would be given tariff-free status by two countries,” said Ms. Sophary.

Ms. Sophary, however, clarified that this was the first agreement between Cambodia and Vietnam that included Cambodian rice exports to the neighboring country.

“These rice exports will have to pass through customs checkpoints at the border to crackdown on smuggling and ‘unofficial exports’,” she said.

Ms. Sophary stressed that since Vietnam is one of the leading rice producers in the Mekong region, Cambodia was not expected to export too much rice to its neighbor. However, she said, the agreement was more focused on strengthening diplomatic ties through trade.

“The bilateral agreement has also paved the way for the private sector to be greater involved in trade between Cambodia and Vietnam,” she said.

“Vietnam may not have premium rice like Cambodia, so somehow they need those kinds of premium rice. This is where the private sector can fill in the gap.”

According to the Viet Nam News’ website, Vietnamese Prime Minister Nguyen Xuan Phuc addressed the opening of the summits.

He reportedly said the CLMV and ACMECS have contributed to important achievements, such as promoting the socio-economic development of each country, helping with the establishment of the Asean Community and aiding peace and stability in the region.

“We are presented with excellent opportunities for the development of CLMV and ACMECS. At these summits, we will discuss new landscapes and together work out ways and means to build dynamic and competitive economies with sustainable and inclusive growth,” Mr. Xuan Phuc was quoted as saying by Viet Nam News.

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NBC, CRF Offer Rice Loan Support

KHMER TIMES
MAY KUNMAKARA

To qualify for the government’s emergency loan, millers need large stocks of stored rice to put up as collateral. Reuters

In an effort to help small and medium-sized rice millers and exporters that are presently unable to provide suitable collateral to qualify for the government’s emergency $27 million rice loan, the National Bank of Cambodia (NBC) has joined with the Cambodia Rice Federation (CRF) to call on the financial sector to be more flexible.

According to a joint report released yesterday, the NBC and CRF will work together to ensure that millers are able to use other methods to secure loans to allow them to buy and process paddy rice during the ongoing harvest.

At present, to qualify for the government’s loan, distributed via the Rural Development Bank, millers need large stocks of stored rice to put up as collateral. That loan was unveiled last month as an effort to combat falling rice paddy prices and cash-flow issues that have caused unrest in the rice industry during peak harvest time.

Based on the results of our research into increasing the financing for the agricultural sector, the banks and microfinance institutions should consider the capability of repayment rather than collateral by using data from the Credit Bureau, which analyzes and evaluates customers and could pave the way for those who lack suitable collateral to get access to loans,” the report says.

“The acceptance of only non-movable assets [land, buildings etc.] as collateral can exclude customers who don’t have fixed assets...so the financial institutions should consider inventory financing and warehouse receipt financing to be one form of giving loans to customers,” it adds.

Bun Mony, CEO of the newly formed Sathapana Bank, welcomed the initiative but stressed that the NBC must further clarify how to accept moveable assets as loan collateral.

“Of course, some banks or MFIs [microfinance institutions] already do this but not widely. We don’t mind treating movable assets as the collateral in order to give more loans to those millers or exporters, but we also want the National Bank of Cambodia to make sure that we have the proper regulations to avoid any risks,” Mr. Mony told Khmer Times.

“Actually, in many other countries they accept movable assets as the collateral for loans but we are not clear on how to control and manage them [in Cambodia] if the owners sell them without informing us – that is the risk. But, if our regulator can guarantee that, we are keen to do it.

A leading rice miller and exporter, who asked not to be named, said that the idea has been discussed for almost five years already with input from major multilateral institutions such as the World Bank and the Asian Development Bank.

“It will not make any different by just recommending this system, as what we really need is a legal framework which includes insurance to cover the risks, and guarantees from the government.”

“It is true that most banks still prefer fixed assets for financing, but the biggest issue or challenge is not about financing but the lack of low-interest financing that the millers and exporters are crying out for.”

“We are competing against regional and global players like Vietnam, Thailand and India for the same market so cost competitiveness is the biggest issue that Cambodia needs to overcome if we want to survive and able to realize the  one million ton [export] target,” they said.

According to the joint report, the financial sector has disbursed some $2.3 billion – $1.2 billion from banks, and $1.1 billion from MFIs, to the agriculture sector. Seventy percent of loans from banks, and 22 percent from MFIs went to rice millers and exporters. 

Read more ➤

Tuesday, October 25, 2016

Assistant Secretary of State to Hold Town Hall Meeting with YSEALI Members

US Embassy

Assistant Secretary of State Daniel Russel will hold a Town Hall meeting with members of the Young Southeast Asian Leaders Initiative (YSEALI) on Thursday, October 27, at 3:15 p.m., as part of a day-long official visit to Cambodia. The Town Hall event is hosted by the American Corner, located on the Norodom Boulevard campus of Paññāsāstra University. Mr. Russel will offer short remarks and take questions from the audience.

YSEALI is the U.S. government’s signature initiative to strengthen leadership development and networking among the youth (age 18-35) of Southeast Asia, with more than 100,000 members across the ten ASEAN countries. This Town Hall event is free of charge and open to all Cambodian YSEALI members as well as other students and young professionals who may be interested in joining the network.

As the Assistant Secretary for East Asian and Pacific Affairs, Mr. Russel is the U.S. government’s highest-ranking diplomat for the Asia-Pacific region. You can find his official bio here.

Media note: This event is closed to press.

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