Post Media Co Ltd, the owner of one of the Kingdom’s oldest media outlets, The Phnom Penh Post, on Friday inked a Memorandum of Understanding (MoU) with the Securities and Exchange Commission of Cambodia (SECC).
The MoU grants The Post exclusive rights to publish a series of educational articles written with input from the securities regulator. The articles will focus on fostering a better understanding of how the securities market works in Cambodia.
It was signed by The Post publisher and CEO Ly Tayseng and SECC director-general Sou Socheat at the SECC office. Also present at the signing were The Post executive editor-in-chief Joshua Purushotman and colleagues, as well as SECC officials.
Tayseng said the MoU will give the SECC a platform to share educational material, information and other news in the new ‘Post Securities’ section of The Post and Khmer language edition Post Khmer.
This will serve as a key tool for the development of the Kingdom’s capital markets, which have only now begun to pick up momentum, he said.
“We commit to providing you [the SECC] a platform to educate the people about the securities market, how the market operates, as well as the development, laws and regulations of the industry.
“The SECC has done a very wonderful job – putting a lot of laws and regulations on the books, especially prakas. It is probably the most regulated industry in the Kingdom.
“On our part, we will do everything possible to support the SECC in developing the market especially in terms of investment, stock trading and so on. We are very happy to be part of this MoU which formalises our relationship,” said Tayseng.
Purushotman said while the Covid-19 pandemic grips regional and global stock markets, the partnership will inject new momentum in the promotion of the market and bring new opportunities for its development.
“We see that there are plenty of opportunities to develop the industry, though introducing investors to the process can be quite complicated for the uninitiated.
“Through this cooperation and collaboration, I believe that we can help the SECC educate more people about the industry. And, I believe that we will have a fantastic platform to educate and share information with investors and the public.
“This is a great opportunity – especially now as global markets are in a slump – we can take the reins on the market. We look forward to cooperating with the SECC,” said Purushotman.
Socheat said the partnership will not only provide a news outlet but an educational tool to the public. He said he hopes that the partnership will also help build a sound, safe market for investors.
“Through the partnership, I also would like to suggest The Post – a strong media outlet in Cambodia – support the SECC with another goal – we want to protect investors, not only educate them.
“I want to work together to build a strong market and protect investors. But, that doesn’t mean that we want The Post to merely say good things about the SECC. This is not my intention.
“I want The Post to talk about the facts that benefit investors. With support from The Post, we want to build investor confidence by educating them, informing them of the regulations and laws, as well as finding the best way to protect them,” he said.
Tayseng said The Post plays a critical role in providing the truth and accurate information to serve the public, investors and civil society.
“We do agree with you [Socheat], and we will play a crucial role in protecting the investor. We will adhere to our professional ethics. We are not here to antagonise the country or anybody – we do not have enemies and are merely here to provide truthful information and fight fake news.
“Of course, we cannot protect any wrongdoing as we have our journalistic ethics to protect as well. That said, we want to see the capital market and national economy grow, which means that the livelihoods of the people will improve as well,” Tayseng said.
The Cambodia Securities Exchange officially opened in April 2012. As of May 5, there are 11 listed firms in the Kingdom – six bond-listed and five stock-listed.
The listed firms have raised $223 million in trading. Market capitalisation increased 58 per cent from $442 million in 2018 to around $701 million last year. Trading volume increased nearly six-fold from $26,000 in 2018 to around $150,000 last year.
As of last year, there were five central counterparties in the derivatives market, 27 derivatives brokers, five fund management companies and five trustees.