The Kingdom’s first Taiwanese bank, officially launched in Phnom Penh on Friday, is expected to encourage further companies from Taiwan to invest in Cambodia, bank officials say.

“We believe our new branches will be extremely beneficial to the economy of Cambodia,” Mega International Commercial Bank president Cai You Cai said at the opening ceremony.

The bank would provide funds to local enterprises and provide improved banking services to customers, while also offering employment opportunities, Cai You Cai said. “Also, with the presence of our Phnom Penh branch, we believe many more Taiwanese enterprises will be motivated to invest in the country.”

Cai You Cai said Mega ICBC was highly regarded by the banking sector in Taiwan, where it has 108 branches. In addition, it has 33 overseas branches, representatives and subsidiaries.

“We are proud of our reputat-ion as a provider of innovative product capacity, superior service and solid financial strength, all of which are acknowledged by the top global credit-rating agencies, which have granted us the best rating among Taiwanese banks,” he said.

Some members of the Kingdom’s banking sector welcomed the arrival  of another bank in Cambodia.

“It will provide advantages and a positive input to the country’s banking industry and overall economic growth,” National Bank of Cambodia vice-governor Neav Chanthana said at the opening ceremony.

“Mega ICBC’s operation in this country shows the trust foreign companies have in Cambodia.”

Increasing foreign investment was expected to enhance technology and banking products in the sector, Neav Chanthana said.

But ANZ Royal Bank chief executive Stephen Higgins said the sector might already be overcrowded, pointing to the 37 banks now operat-ing in Cambodia.

“Naturally, we wish them well, but you do have to question why we need another bank here. Perhaps it’s a sign that the minimum capital requirements should be increased further,” Higgins said.

Taiwan’s Central News Agency reported in June that another Taiwanese outfit, Taiwan Co-operative Bank, planned to set up a branch in Cambodia in a bid to expand its Asian footprint, although this move is yet to be confirmed.