No.8 (May 6, 2019)
Market Industry Trends
World Bank: EU Export May Decline Up to $654M. The value of Cambodian exports to the EU is expected to decline between $513-$654 million per annum of the country’s tariff-free trade access is withdrawn. (Phnom Penh Post).
CSX Market Value at $534M. Market capitalization in CSX reached $534.3 million at the end of the first quarter of this year- up some 21% from the fourth quarter last year. Price shares of the five listed companies also showed positive results in the first quarter of this year compared to last year. PPWSA rose by 31.43%, PAS increased 23.8%, PPAP surged 23.7% and GTI rose 4% while the price of PPSP remain stable. Daily average of trading volume in the first quarter of this year reached 67,311 shares per day, four times of the volume of last year. (Phnom Penh Post).
SCG reports strong Q1 growth in Kingdom. Thai Siam Cement Group Public Company limited on Tuesday reported strong growth in the Cambodian market during this year first quarter, citing a 9% y-o-y increase in sale revenue. (Phnom Penh Post).
BRI to greatly benefit Cambodia. Recent research by Moody’s investors service revealed Cambodia, which currently has a stable B2 credit rating, is among the countries with the greatest potential for reaping economic benefits from China’s BRI. (Phnom Penh Post).
Bangladesh to lose garment workers. some 60% of garment workers will lost their jobs by 2030 and will be replaced by robots because of the automation installed by factory owners, a top official of Bangladesh association of software and information services said. (Phnom Penh Post).
VN Set to become manufacturer for established brands around the world. Vietnam’s garment and textile sector is set to expand its market share globally, taking advantage of FTAs. (Phnom Penh Post).
Central banks boost gold demand. The world’s demand for gold rose in the first three months of this year as central banks diversified away from the dollar amid concern over geopolitical instability. (World Gold Council)
Lao Rice Export Expected to Plummet. Laos is anticipating reduced income from rice exports this year in the wake of widespread flooding across the country last year. (Phnom Penh Post).
Vietnam, South Korea Companies boost cooperation in robots and automation. About 50 businesses from south Korea are seeking Vietnamese partners, especially in the field of robotics and automation. (Phnom Penh Post).
Life insurance outstripping general a first. Gross life insurance premium in the kingdom exceeded gross general insurance premium last year for the first time following an increase in the number of operators, as well as rising consumer demand. the kingdom’s insurance industry generated $196.4million in gross premium at the end of last year of which gross general insurance premium reached $87 million, micro-insurance $9 million, and life insurance $99 million. (Phnom Penh Post).
National Bank of Canada to buy final 10% of ABA. Montreal-based National Bank of Canada (NBC) recently unveiled the plans to acquire the final 10% stake in the Cambodia-based ABA, which would give it 100% ownership of the bank. An investor presentation in November predicted ABA would record a profit of around $70 million in 2018 up from $7.5million in 2014.ABA has 66 branches, 4,500 employees and more than 450,000 customers. (Phnom Penh Post)
Royal Group signs MoU with government to boost digitalization. The Royal Group on Monday signed a MoU with the Ministry of post and telecommunication to support the kingdom’s digitalization efforts. both sides will collaborate in the wide-scale adoption of next generation technology via e-government applications, artificial intelligence, the internet of things, as well as an ICT innovation center and could data center. (Phnom Penh Post).
signed deals at 2nd BRF. $64billion in deals were signed at a summit of BRI and more nations would join the global infrastructure programme. (Phnom Penh Post).
Chinese tourism MoU signed. Cambodia and China singed a MoU on tourism cooperation for 2019-2021 to attract more Chinese tourists and investors to Cambodia. (Fresh News).
Government and Huawei ink MoU on 5G network. the MoU is expected to build a fifth generation network in Cambodia. (Phnom Penh Post).
Employees’ Seniority pay to be tax free. The General Department of taxation (GDT) on Thursday said back payments of seniority indemnity for Cambodian employees are tax exempt, while employers can also deduct the payments from their income taxes. (Phnom Penh Post).
The GDT’s instruction circular singed by Cambodian minister of economy and finance Aun Pornmoniroth on April 11 and released on Thursday also says that services in relation to recruiting, training, transporting, and managing workers overseas by private agencies are exempt from value-added tax. (Phnom Penh Post).
GDT calls for US national account info. GDT has notified all financial institutions to send to its information on account of US nationals in Cambodia for 2018 by June 28, so that it can be sent to the US’s domestic revenue authority. (Phnom Penh Post).
Kingdom’s Inclusivity hailed. IMF ‘s Managing director Christine Lagarde has hailed Cambodia as an example in the increase of financial inclusion, one where Fintech has been used to increase financial access to people who were previously unbanked. (Phnom Penh Post).
Economic growth set to slow this year: WB report. Weaker than expected external demand is the cause of the slow growth. (Phnom Penh Post).
Kingdom’s petrol prices up 20%. Cambodia’s retail petrol price has increased more than 20% during the first month this year due to rising costs on the international market. (Phnom Penh Post).
Cambodia’s remittance payments reach $1.4B. funds repatriated by Cambodian migrant workers continued to rise, totaling $1.4 billion last year, an increase of 11% compared to 2017 – figure from national bank of Cambodia. (Phnom Penh Post).
World Bank: Myanmar economy to rebound. Despite Myanmar’s economic growth having declined to 6.2% last year from 6.8% in 2017, the nation remains resilient and is expected to return to growth of 6.5% this year and 6.6% next year. (Phnom Penh Post).
Report: Food prices the cause of mounting inflation in Laos. inflation rate continued to rise in march attributing the growth of the annual consumer price index due to rising food prices, and not the depreciation of the kip as many people believed. (Phnom Penh Post).