Search

Search form

Logo of Phnom Penh Post newspaper Phnom Penh Post - Confidence index to aid decision makers

Confidence index to aid decision makers

Confidence index to aid decision makers

A new business confidence measure launched by ANZ Royal yesterday is set to provide a solid guide for future decision making in Cambodia’s maturing economy, the banks CEO and economists said yesterday.

The ANZ Royal Business Confidence Index is built from survey responses from companies operating in Cambodia’s agricultural, manufacturing and services industries and who have annual revenues of more than $1 million. Firms are questioned on their revenue forecasts, profitability, staffing expectations, capital investment outlook and their overall business confidence for the upcoming 12 months. Scores are then ranked up to one hundred and plotted on an index.

Speaking at the index launch in Phnom Penh, ANZ Royal CEO Grant Knuckey hailed the project as an important guide for Cambodia’s business community.

“Making decisions is what business is all about and making decisions is a function of confidence, that’s what enables you or that is a catalyst for making a decision to invest, to hire, to grow or not,” he said.

Just 40 businesses responded to ANZ Royal’s maiden survey, but despite Cambodia’s ongoing political uncertainty, business confidence is generally positive, according to Knuckey.

“Companies are saying that they expect revenue to grow strongly through the next 12 months. They are also saying they will continue to invest,” he said.

Overall confidence was ranked 83 out of 100.

Survey respondents, however identified a lack of quality human resources, unfair treatment from customs and tax departments, lagging infrastructure and high electricity costs as their greatest concerns, the ANZ CEO added.

Faisal Ahmad, the International Monetary Fund’s Resident Representative in Cambodia praised the ANZ initiative saying it would assist both government and the private sector to shape Cambodia’s developing economy.

“The way to think of Cambodia today, if you only have small ‘mum-and-pop’ shops you can just go by intuition. But in a more structured economy you need that phase,” he said, referring to a requirement for a more sophisticated economic analysis as Cambodia’s economy matures.

Surveys are ongoing with the number of respondents expected to increase. The ANZ Royal Business Confidence Index will be released quarterly.

Indicative Exchange Rates as of 8/5/2014. Please contact ANZ Royal Global Markets on 023 999 910 for real time rates.

RECOMMENDED STORIES

  • Breaking: PM says prominent human rights NGO ‘must close’

    Prime Minister Hun Sen has instructed the Interior Ministry to investigate the Cambodian Center for Human Rights (CCHR) and potentially close it “because they follow foreigners”, appearing to link the rights group to the opposition Cambodia National Rescue Party's purported “revolution”. The CNRP - the

  • Rainsy and Sokha ‘would already be dead’: PM

    Prime Minister Hun Sen on Sunday appeared to suggest he would have assassinated opposition leaders Sam Rainsy and Kem Sokha had he known they were promising to “organise a new government” in the aftermath of the disputed 2013 national elections. In a clip from his speech

  • Massive ceremony at Angkor Wat will show ‘Cambodia not in anarchy’: PM

    Government officials, thousands of monks and Prime Minister Hun Sen himself will hold a massive prayer ceremony at Angkor Wat in early December to highlight the Kingdom’s continuing “peace, independence and political stability”, a spectacle observers said was designed to disguise the deterioration of

  • PM tells workers CNRP is to blame for any sanctions

    In a speech to workers yesterday, Prime Minister Hun Sen pinned the blame for any damage inflicted on Cambodia’s garment industry by potential economic sanctions squarely on the opposition party. “You must remember clearly that if the purchase orders are reduced, it is all