Logo of Phnom Penh Post newspaper Phnom Penh Post - CSX Growth Board set to list SMEs next year

CSX Growth Board set to list SMEs next year

Content image - Phnom Penh Post
Since the CSX was launched more than seven years ago, it had attracted only five companies to its securities market and three financial institutions to offer corporate bonds. Heng Chivoan

CSX Growth Board set to list SMEs next year

Security Exchange Commission of Cambodia (SECC) director-general Sou Socheat said there will be two or three small- and medium-size enterprises (SME) listed on the Cambodia Securities Exchange (CSX)’s Growth Board as early as next year, which will be another move for the stock market in Cambodia.

Socheat said at a forum late on Thursday that since the CSX was launched more than seven years ago, it had attracted only five companies to its securities market and three financial institutions to offer corporate bonds.

He said there will be a few more SMEs listing early next year.

“The SECC hopes that for next year, besides Acleda bank which would be listed, there will be some small- and medium-size enterprises listing on the Growth Board early next year.

“For our CSX, we have the Main Board for big companies like Acleda and the Growth Board for the SMEs which are required to have a minimum capital of $500,000. We will see around two or three SMEs to be listed next year,” he said.

The Cambodia Industrial Development Policy 2015-2025 report said the government targeted 80 to 95 per cent of SMEs to be officially registered, out of which 50 to 70 per cent have an accurate account and balance sheet.

Ministry of Industry and Handicraft secretary of state Heng Sokong said at a forum recently that accessing finance is one of the challenges for local SMEs.

He suggested that they should consider going public, allowing their shares to be purchased and traded on the local bourse.

“They will be able to stay competitive as they have a source of finance to expand productivity. However, they should be ready themselves and ensure their businesses are registered and have accurate accounts and balance sheets,” said Sokong.

He said the target is simple but important as proper bookkeeping is one of the mechanisms to check the business status and operation of enterprises and provide accountability to shareholders.

Sokong said SME owners should realise how much they can benefit when their businesses are registered, noting that there are about 520,000 SMEs in Cambodia, with about 150,000 of them registered as manufacturing entities.

“The SME sector is the backbone of economic growth. If the sector goes strong, it will help a lot to contribute to the country’s development,” he said.

In early January, Prime Minister Hun Sen released a sub-decree granting a huge tax incentive to companies listed on the local bourse.

The firms that listed on the bourse within three years of the sub-decree received a 50 per cent reduction on their income tax and elimination of all tax debt.

MOST VIEWED

  • Khmer New Year holidays postponed

    In an effort to halt Covid-19 infections in the Kingdom, Prime Minister Hun Sen has postponed the Khmer New Year holidays scheduled from April 13 to 16. While the people will not have their usual break, nor will there be any public celebrations or gatherings at pagodas,

  • Private schools struggling

    The Cambodian Higher Education Association has claimed that 113 private educational establishments are facing bankruptcy because of their inability to pay rent and staff salaries in light of nationwide school closures caused by the Covid-19 outbreak. It said the financial trouble started when the Ministry of

  • NA, Senate set for bill on ‘emergency’

    Prime Minister Hun Sen has requested the Senate to convene an extraordinary meeting to review the draft law that aims to put the Kingdom in a state of emergency after the bill reached the National Assembly (NA) on Friday. The draft law, which was approved

  • Temporarily laid-off workers to get just $70

    Prime Minister Hun Sen announced changes in the allowances for temporarily laid-off garment workers from receiving 60 per cent of the minimum wage to a flat $70 because factories cannot pay, he said. Workers will also not be required to attend training courses after more than 100 factories

  • Tourists can now prolong their stay

    The Ministry of Foreign Affairs and International Cooperation said tourists holding Visa T and arriving in the Kingdom after January 1 will be allowed to prolong their stay until they are able to return home. The decision comes as Cambodia and most countries take measures to

  • PM: Law likely next week

    Prime Minister Hun Sen said the draft law aiming to place the Kingdom in a state of emergency amid the Covid-19 pandemic is likely to be approved after the Khmer New Year, though he said there is a slim chance of enforcement given the current