Property News Roundup 2nd December 2024

02 December 2024 | Posted in News

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

  1. Cambodia can play a key role in promoting regional trade: World Bank

The World Bank report emphasizes improving Cambodia’s transport links with neighboring countries to boost regional trade. It aligns with the Cambodian government’s CITLS Master Plan for 2023–2033, which aims to enhance transport efficiency. Tania Meyer, World Bank Country Manager for Cambodia, highlighted that a comprehensive approach will enhance competitiveness, unlock export potential, and promote regional trade, while also stressing the importance of climate resilience.

November 25th 2024 | Fibre2fashion | Link: tinyurl.com/4e33p729

  1. Mixed messages on return of large-scale construction projects

Cambodia’s construction sector has grown rapidly over the past two decades, with over 66,000 projects approved from 2000 to July 2024. This includes more than 2,800 buildings of five stories or more, mainly in Phnom Penh, Preah Sihanouk, and Banteay Meanchey. Key drivers include foreign investment, urban population growth, and rising incomes. However, the Covid-19 pandemic has slowed large-scale projects, especially in Sihanoukville. The government continues to support the sector through policies promoting investment and efficient permit issuance.

November 25th 2024 | The Phnom Penh Post | Link: tinyurl.com/3jexr72v

  1. ‘China is Cambodia’s largest source of foreign investment’

China has been Cambodia’s largest source of foreign investment for 12 years. From January to October 2024, bilateral trade reached $14.4 billion, with Chinese imports from Cambodia growing by 20%. Chinese enterprises signed nearly $3 billion in investment agreements during this period. China remains Cambodia’s top trading partner and largest source of foreign direct investment, accounting for about 47% of total FDI by mid-2024. This strong economic relationship is expected to continue driving Cambodia’s growth, especially in manufacturing and agriculture.

November 25th 2024 | Khmer Times | Link: tinyurl.com/tpt2eefx

  1. PM rejects Funan Techo Canal funding crisis reports

Prime Minister Hun Manet has dismissed reports of financial issues with the Funan Techo Canal (FTC) project, asserting that the Royal Government of Cambodia (RGC) has a solid plan and backup partners. He emphasized the importance of proper procedures and impact assessments, especially during the rainy season. The Ministry of Public Works and Transports (MPWT) also denied claims of financial problems, stating that the project is progressing well with detailed research and collaboration. Policy analyst Seun Sam expressed confidence in the government’s ability to fund the $1.7 billion project, highlighting its historical significance for Cambodia.

November 26th 2024 | Khmer Times | Link: tinyurl.com/kx43c2ff

  1. ADB Approves $50 Million Loan to Strengthen Cambodia’s Trade and Competitiveness

The Asian Development Bank (ADB) has approved a $50 million loan to support Cambodia’s efforts to improve its business environment, enhance the competitiveness of its enterprises, and address trade barriers. This initiative, part of the Trade and Competitiveness Program, focuses on the crucial role of micro, small, and medium-sized enterprises (MSMEs) by helping them adopt digital solutions, diversify operations, and increase productivity. By 2027, the program aims to have 50,000 MSMEs registered online, facilitating smoother business operations and cross-border trade. This loan underscores ADB’s commitment to fostering sustainable economic growth and regional integration in Cambodia.

November 26th 2024 | Cambodia Investment Review | tinyurl.com/287cj8h3

  1. Challenges apart, construction sector gets $4.3 billion investments

n 2024, Cambodia’s construction sector attracted $4.3 billion in investment, a 15% decrease from 2023. The Ministry of Land Management, Urban Planning and Construction approved 2,633 projects covering over 10 million square meters. Despite global economic challenges, the sector remains resilient, with a shift towards commercial, factory, hospital, and school buildings. Deputy Prime Minister Say Samal emphasized the government’s commitment to achieving high-middle-income status by 2030 and high-income status by 2050. The focus is on creating favorable conditions for investment and developing infrastructure to support economic growth.

November 27th 2024 | Khmer Times | Link: tinyurl.com/nhkvuruf

  1. RCEP gives Cambodia entry to a market of 2.3 bln people

Prime Minister Hun Manet highlighted that the Regional Comprehensive Economic Partnership (RCEP) gives Cambodia access to a market of 2.3 billion people, significantly expanding opportunities for investment and trade. Speaking at the Global Chinese Economic and Technology Summit 2024, he emphasized that Cambodia offers investors a gateway to the region’s future. The RCEP, effective since January 2022, includes 15 member countries and aims to boost security, prosperity, and partnership within ASEAN and its partners. Cambodian senior minister Sok Siphana noted that the RCEP enhances regional supply chain stability and reinforces ASEAN’s central role.

November 27th 2024 | Khmer Times | Link: tinyurl.com/3sz5avkp

  1. China’s industrial profits fall by 10% in October as deflation worries linger

China’s industrial profits fell by 10% in October, marking the third straight month of decline. Despite stimulus measures, profits for the first ten months of 2024 dropped by 4.3% year-on-year. Some sectors improved, but overall economic conditions remain weak. Retail sales grew by 4.8% in October, and the unemployment rate decreased to 5%.

November 27th 2024 | CNBC | Link: tinyurl.com/4syn7v9p

  1. Expanding Regional Trade Key to Cambodia’s Economic Resilience

Sok Siphana, a Senior Advisor to the Royal Government of Cambodia, emphasized the importance of diversifying Cambodia’s trade and investment. While the US remains Cambodia’s top export destination, China is a key investor, holding about half of the country’s total investment. Siphana highlighted the need to leverage regional opportunities like the Regional Comprehensive Economic Partnership (RCEP) to mitigate global economic uncertainties. He also noted that the Belt and Road Initiative has significantly boosted Cambodia’s infrastructure. With potential global economic impacts from the upcoming Trump presidency, Siphana sees an opportunity for Cambodia to attract more Chinese investment.

November 28th 2024 | Kiripost | Link: tinyurl.com/myap5wa6

  1. Techo International Airport 90% complete, over $1.3B spent

Techo International Airport (TIA) near Phnom Penh is over 90% complete and expected to open in mid-2025. Experts believe it will boost Cambodia’s economy by improving access for tourists, investors, and cargo. The airport will handle the world’s largest aircraft and significantly enhance the country’s connectivity, tourism, and transportation sectors.

November 28th 2024 | The Phnom Penh Post | Link: tinyurl.com/3sj86vuc

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