Logo of Phnom Penh Post newspaper Phnom Penh Post - Kingdom's post to go public

Kingdom's post to go public

Kingdom's post to go public

Officials say privatising Cambodia’s postal service will increase transparency

CAMBODIA’s postal system will be become a public enterprise early next year in a bid to prepare for eventually listing on the domestic stock exchange, officials said Sunday.

Moving control from the Ministry of Posts and Telecommunications (MPTC) to operations at arm’s length will increase transparency and grow revenues, MPTC secretary of state Sarak Khann said.

“The government has targeted listing it on the upcoming stock market, so it will become a public enterprise to increase transparency in account standards and financial statements,” he said. “When it is transparent enough and generates sufficient revenue, it may be listed on the bourse.”

The Council of Ministers approved a draft sub-decree establishing Cambodia’s postal office as a public enterprise, according to a press release issued Friday.

Prepared by the MPTC, the sub-decree moves the postal system to a public enterprise to reform the management system, the release said. It added that the system would take advantage of modern information technology to track postal consignments, along with expanding service in remote areas.

Cambodia’s postal services were poorly developed, said Sarak Khann, who also leads a joint committee composed of MPTC and Ministry of Finance officials in evaluating the properties and capital of the system.

“We want to generate revenue from this sector like developed countries, not just around US$2 million a year it earns nowadays,” he said.

Some 20 local and foreign companies are licenced to do business in postal services, but only half are presently in operation, he said.

Transport and logistics firm TNT Express Worldwide Cambodia and Laos general manager Sjaak de Klein said they welcome increased openness in the postal system.

“We always welcome fair competition in a level playing field in a liberal postal market. We believe that the ultimate user benefits from these developments,” he said.

Council of Ministers spokesman Phay Siphan said the move to a private enterprise would improve financial responsibility as well as increase effectiveness and provide more autonomy in technology and finance.

“With the switch, we hope Cambodia’s post offices will provide better service and compete fairly with private enterprise,” he said.

Cambodia’s postal system presently includes 700 employees working at 80 post offices in 24 cities. Employees working for both the postal system and government ministries will have to choose one employer when the move to a public enterprise takes place, Sarak Khann said.

After becoming a public enterprise, he said, the post service’s board will be composed of representatives from the MPTC, the Ministry of Finance, the Council of Ministers, a government appointed CEO, and a staff representative.

The Cambodian Securities Exchange is scheduled to launch by the end of the year, and any qualified private firm or public enterprise is eligible to list, Cambodia Securities and Exchange Commission (SECC) director general Ming Bankosal said.

“All companies, not only Cambodia’s postal service, will be considered for listing if their financial soundness and corporate governance meet the criteria set by the SECC.”

A firm interested in listing on the SECC must be transparent in its accounting and governance, according to the stock market’s rules. To issue an initial public offering (IPO), it is required to have minimum capital of 10 billion riels, or $2.35 million, an annual profit of 1.5 billion riels, or $352,941, and net profits for three years totaling 3 billion riel, or $705,882.

MOST VIEWED

  • Two luxury hotels latest quarantine options for inbound travellers

    The Inter-Ministerial Committee to Combat Covid-19 has designated two luxury hotels as alternative quarantine options for travellers who wish to enter Cambodia through Phnom Penh International Airport – Sokha Phnom Penh Hotel & Residence and the Courtyard by Marriott Phnom Penh. In a notice detailing guidelines issued

  • Visa A holders get to quarantine at Himawari Hotel

    The Ministry of Health has permitted foreign diplomats, UN and International NGO officials to undergo quarantine at Himawari Hotel in the capital in case they do not have a separate place suitable for this purpose, but the government would not be responsible for the expenses.

  • Baby saved as mother is lost to Covid

    Newborn baby Neth David has had a rough start in the world. His mother, Vong Daneth, was seven months pregnant when she contracted a severe case of Covid-19. When it became clear to her doctors that she would not survive, they performed a cesarean section

  • Jabs for kids bring hope for school reopenings

    Cambodia is tentatively planning to reopen schools – at least at the secondary level – when the vaccination of children aged 12-17 is completed, even though daily transmissions and deaths in other age groups remain high. Schools across the country have been suspended since March 20, one month

  • Governor: Covid subsides in capital

    Phnom Penh municipal governor Khuong Sreng said the Covid-19 situation in the capital’s 14 districts has eased, with only two districts still recording a high number of infections. “Transmission cases in all districts are dropping, though they are relatively higher Meanchey and Por Sen Chey.

  • Hun Sen: Get 12-17 age group ready for Covid jabs

    Prime Minister Hun Sen has told parents of children aged 12-17 in Phnom Penh and the provinces of Kandal and Preah Sihanouk to get them ready for vaccinations soon. “There is a need to vaccinate children and youths aged 12 to 17. According to the statistics provided