Logo of Phnom Penh Post newspaper Phnom Penh Post - High prospects for Singapore FDI

High prospects for Singapore FDI

Content image - Phnom Penh Post
Workers install rebar at a construction site on Hun Sen Boulevard southern Phnom Penh’s Meanchey district on March 10. Infrastructure is one of the top areas of Singaporean investment. Heng Chivoan

High prospects for Singapore FDI

The Council for the Development of Cambodia (CDC) on July 26 said it approved 127 Singapore-owned investment projects worth $1.53 billion as of June 30, since it was established in 1994.

The CDC, the government’s highest decision-making body for large-scale investments, revealed this in a press release issued in conjunction with a webinar on “Discovering Cambodia – Insight into the Business Opportunities in Cambodia” held on the same day, organised by the Singapore Business Federation and the Council for the Development of Cambodia.

The release listed tourism, manufacturing and infrastructure as top areas of Singaporean investment.

CDC secretary-general Sok Chenda Sophea said in the release: “Cambodia’s enabling investment environment has been a cornerstone awaiting Singapore investments to tap [into] the vast potential in Cambodia’s agri-food industries, services and other manufacturing sectors.”

To that end, Chenda Sophea underscored the importance of the gains the Kingdom has made in political stability, as well as the Law on Investment adopted in October, which he said incentivises responsible business conduct and inclusive approaches in business operations.

He called for more quality Singaporean investment that would help spur economic recovery and development in the Kingdom, stressing the value of inbound foreign direct investment (FDI) from the ASEAN city-state.

Singaporean ambassador to Cambodia Teo Lay Cheng said: “Singapore is amongst Cambodia’s top five foreign investors. Investments span sectors such as real estate, energy, trading, and distribution, food and consumer, education and finance.

“Cambodia was one of the fastest growing economies in Asia. As the country emerges from the Covid-19 pandemic following a successful Covid-19 vaccination campaign, a return to earlier high levels of growth is anticipated,” the release quoted her as saying.

Speaking to The Post on July 27, Cambodia Chamber of Commerce (CCC) vice-president Lim Heng posited that increased cooperation with Singapore, as a major international trade and transit hub, would boost the Kingdom’s exports to more markets.

“Singaporean investors are making significant contributions to Cambodia’s production chain, both for domestic supply and exports,” he said.

Meanwhile, Ministry of Tourism secretary of state Tith Chantha and Singaporean Minister of Culture, Community and Youth Edwin Tong at a bilateral meeting on July 26 said the two countries are keen to increase the number of commercial flights between them, in a bid to encourage more travel to Cambodia, especially on the occasion of the Southeast Asian (SEA) Games, which the Kingdom is set to host in May next year, according to a statement from the tourism ministry.

Chantha propounded that Singapore, as a global air hub, would be an important source market for arrivals to the Kingdom, the statement said.

Bilateral trade between Cambodia and Singapore fell by 38.230 per cent to $2.079085 billion in the first half of 2022 from $3.365840 billion a year ago, according to the General Department of Customs and Excise.

Exports to Singapore contracted 30.8 per cent year-on-year to $62.387 million from $90.109 million, while imports shrunk 38.435 per cent to $2.016698 billion from $3.275730 billion. Meanwhile, Cambodia’s trade deficit with Singapore for the January-June period stood at $1.95431 billion, narrowing by 38.652 per cent on a yearly basis from $3.18562 billion.

MOST VIEWED

  • All Covid restrictions for inbound travellers lifted

    Cambodia has apparently taken the final step towards full reopening of the country without Covid-19 restrictions by removing all requirements for inbound travellers, who until now had to show health certificates indicating that they have tested Covid-19 negative in the past 72 hours as well as

  • Typhoon Noru brings flash floods – 16 dead

    An official warned that that the 16th typhoon of the season, Noru, had brought heavy rains to areas the Mekong River and flooded thousands of homes in the provinces bordering Thailand. As of September 27, the death toll from the flooding had risen to 16. National Committee

  • Cambodia stands firm on 5PC: No invite for Myanmar to ASEAN Summit this year

    Cambodia has not invited Senior General Min Aung Hlaing, chairman of Myanmar’s ruling State Administration Council (SAC), to the 40th and 41st ASEAN Summit and related meetings scheduled for next month in Phnom Penh. The government will instead invite a non-political representative from Myanmar

  • Mushrooming borey projects and home financing – a cause for concern?

    A spurt in housing developments is typically a sign of a growing economy but underneath all that might lay some anxiety of credit growth as developers offer financing to buyers at higher rates, an activity the central bank identifies as ‘shadow banking’ Earlier this year,

  • Thai Senate delegates in Cambodia to discuss anti-graft co-op

    A delegation from Thailand's Senate was in Phnom Penh on September 28 to meet their Cambodian counterparts to discuss strategies for fighting corruption and enhancing cooperation. The Thai delegates were from its Senate’s Committee on Studying and Inspecting Corruption, Misconduct and Strengthening Good Governance. They

  • Hun Sen’s rare visit to Cuba: What’s going on?

    Back on August 17, Prime Minister Hun Sen announced that he would deliver a speech at the 77th UN General Assembly (UNGA) at the UN headquarters in the US’ New York City, visit Cuba and attend the state funeral of the slain Japanese Prime Minister Shinzo