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Stable Cambodian economy remains a haven for Singaporean investors

Content image - Phnom Penh Post
Prosperous Singapore is a major investor in fast-growing Cambodian economy. AFP

Stable Cambodian economy remains a haven for Singaporean investors

The vibrant economy and better understanding of Cambodia’s friendly investment policies continue to draw more Singaporean investors to Cambodia.

Steadfast growth of the Kingdom’s gross domestic product (GDP), political stability, ease of doing business and close proximity to Singapore are some additional factors that attract businesses from the island state.

“Before Singaporeans did not have much knowledge about Cambodia but now with the internet and as more news goes viral, people are able to read and understand about the country.

“In the last six months lot of trade missions from Singapore have come to Cambodia, either organised groups to do market research or through government or business federations.

“There is a bigger interest now and more Singaporeans begin to realise that Cambodia has lot of benefits to offer to investors. It is easy to invest and easy to remit (profits), not stringent like other countries,” Andrew Tay, vice-president of Singapore Club Cambodia told The Post.

Singapore is a key investor in the Kingdom with total fixed-asset investments of $1.2 billion in 2017.

While bilateral trade touched $3 billion between both countries in the same year, according to media reports.

Singaporean entrepreneurs are operating in every sphere in Cambodia — hospitals, hotels, cafes, schools and trading, just to name a few. 

Content image - Phnom Penh Post
Singapore Foreign Service officials and their Cambodian counterpart at a reception in March this year.

 Bilateral relations between both nations began in 1965 and Cambodia was one of the first countries to recognise Singapore’s sovereignty, after it broke away from neighbouring Malaysia. 

Two years ago, Singapore and Cambodia signed the double tax avoidance agreement.

Describing it as an “exciting times” Tay said Cambodia continues to impress international investors because of its long term commitment to develop the country, which is now one of the fastest growing economy in the region. 

“Cambodia’s GDP is booming, the construction sector is also booming. No doubt there are obstacles but the government continues to assure investors that there is security for investors.

“More efforts are put in to improve infrastructures like building bridges, roads and providing electricity.

“There are lot of internal investments. Local oknhas (tycoons) are investing in their own industries and pumping back the money into the local economy.

“And this contributes to GDP growth as well, but this is seldom highlighted,” said Tay, who is also the executive director of Himawari Hotel Apartments.

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