Cambodia Weekly Financial News
Cambodia Weekly Financial News
2024-08-16View Times｜ 1112
Cambodia Weekly Financial News
August 09 ~ 15 , 2024
09 August 2024
Riel transition via Bakong swells 180 percent in H1
The National Bank of Cambodia announced that the digital payment of “ Riel currency “ through The Bakong system touched 75.6 million transactions in the first semester of this year, an increase of 180 percent compared to the same period in 2023. In the first six months of 2024, the number of transactions in KHR through the Bakong system was 75.5 million times, a rise of 180 percent compared to the corresponding period last year. The overall transaction was equivalent to 64.9 trillion riles, an increase of 140 percent compared to the first half of 2023, while the digital payment in the US dollar reached 99.8 million transactions accounting for approximately $38.8 billion, marking a growth rate of 130 percent compared to the same duration last year.
Source : Khmer Times
10 August 2024
Minister Highlights Successes of CLV -DTA
The Commerce Minister has highlighted a raft of achievements generated by the Cambodia-Laos-Vietnam Development Triangle Area project throughout its 25 years, citing trading activities and other investments between the neighboring countries. Hun Sen noted that the construction of a development triangle would exploit the potential, strengths, and resources of each country for the goals of fast and sustainable economic growth, leveling the development gap compared with other countries and creating a driving force for each nation’s economic promotion, as well as the region.
Source : Kiripost
12 August 2024
Credit cards in Cambodia grow 20 percent in 2023
Credit cards in Cambodia have grown 20 percent in 2023, showing that customers have become more savvy in using new financial instruments. The number of credit cards has risen 20 percent to 223,749 in 2023 from 185,360 in 2022. But as a percentage of total credit in the system, credit cards still form a small part of Cambodia’s banking system. A 2023 survey by card issue Visa showed that 35 percent of Cambodians use either a debit or credit card. “Even though usage of cash is high in Cambodia, credit and debit cards for payment is growing in popularity – as 35 percent of those surveyed use them. Interest in contactless cards is also growing,” said Visa in its report. In 2023, of 223,749 credit cards issued. The majority (100,538 cards) were issued by AEON Specialized Bank (Cambodia) Plc. This was followed by ACLEDA Bank (31,953), Union Commercial Bank Plc (24,207), Cathay United Bank (Cambodia) Corp Ltd (11,352), Cambodia Post Bank (8,779) and Cambodia Public Bank (8,573) — being the top issuers of credit cards in the Kingdom.
Source : Khmer Times
12 August 2024
PPSP Suffers Net Loss in Q2’24 Amid Robust Share Buyback
The company, which is in the midst of a robust share buyback, saw a 60 percent drop in revenue at $2.9 million in q2’24 from $7.2 million a year ago, according to its filing with Cambodia Securities Exchange ( CSX ). For the cumulative six-month period, net profit collapsed to 98 percent to $146.746 from $6.3 million on the back of $7 million in revenue, down 81.5 percent from the same period in 2023. Following its initial public offering (IPO) in May 2016, the share price has fallen 20 percent from its 2,860 riel IPO price, erasing gains of 43.1 billion riels ($10.5 million) in market capitalization.
Source : Kiripost
13 August 2024
Cambodia collects $3B in tax revenue in H1
The government generated $2,909 million in revenue from tax and customs in the first half of 2024, representing 46 percent of the target set for 2024, a report from the Ministry of Economy and Finance showed on Monday. According to the Ministry of Economy, GDCE lost nearly $200 million in revenue from the implementation of the ASEAN Free Trade Agreement and between ASEAN and other ASEAN partners in the first half of this year compared to the same period in 2023. Regarding the GDT’s decreasing tax collection, the ministry said that it was due to income tax and VAT that local goods and services fell sharply.Based on the performance in the first half of this year, the ministry said the collection of tax revenue by the end of this year will miss the target set for 2024.
Source: Khmer Times
14 August 2024
Acleda Q2 Net Profit Down 14% As Net Impairment Losses Rise
Acelda Bank Plc raised its net impairment losses by 44 percent to 77.6 trillion rile ( approximately &19 million) in the second quarter ended June 30, 2024, from a year ago, according to its filing with Cambodia Securities Exchange. The bank said growth in customer confidence saw deposits expand nearly eight percent to 31.9 trillion riel ( $7.9 billion ), as of June 30 2024 from December 31, 2023. Total loans outstanding in Q2’24 were only slightly up at 27.6 trillion riels ( $6.7 billion) from 27.2 trillion riels. The filing also showed total assets valued at 42.01 trillion riels ($10.3 billion ) against 39.8 trillion riel as of the end of December 2023, making it the second-largest commercial bank in Cambodia.
Source: Kiripost
15 August 2024
Opinion: Current Cambodian Economy and Challenges Moving Forward in 2024
David Van provides an in-depth analysis of Cambodia's economy, covering its growth, challenges, and strategic recommendations:
Current Conditions:
• GDP Growth: Pre-pandemic growth averaged 7% annually. The economy contracted in 2020 but started recovering in 2021-2022. Projected growth for 2023-2024 is around 6%, though there are concerns about the accuracy of GDP calculations.
• Inflation and Wages: Rising costs and inflation have outpaced wage growth, particularly in the informal sector, squeezing household budgets.
• Employment: The labor market is dominated by the informal economy, with high youth unemployment and many Cambodians reliant on remittances from abroad.
Key Challenges:
• Vulnerability: Cambodia is highly exposed to global economic uncertainties, such as China's slower growth and regional political instability.
• Sector Dependence: The economy's reliance on garments and tourism makes it sensitive to global demand fluctuations.
• Structural Issues: Infrastructure gaps, particularly in rural areas, and a skills mismatch in the education system hinder long-term development.
Recommendations:
• Diversification: Expand into new sectors like technology and renewable energy.
• Data Improvement: Enhance data collection and consider rebasing GDP calculations.
• Resilience: Strengthen social protection and regional cooperation to mitigate economic shocks.
• Infrastructure and Education: Invest in rural infrastructure and reform the education system to better match labor market needs.
Source: Cambodia investment Review
15 August 2024
NBC, CCC to address concerns of private financial institutions
Chea Serey, Governor of the National Bank of Cambodia, and Kith Meng, President of the Cambodia Chamber of Commerce chaired a meeting to address the financial issues raised by the private stakeholders aimed at maintaining a stable banking system and promoting sustainable economic growth. According to CCC, the meeting covered five major issues raised by the private institution including the reserve obligation rate, conservative capital ratio, budget adequacy framework, credit restructuring, and cybercrime risks. More importantly, the discussion further expanded to a large number of unresolved complaints which have been stuck in the court related to the banking and financial issues aimed at providing a better business and investment environment in Cambodia, the statement added. Serey and Meng agreed to jointly address the issues raided by stakeholders and committed to seeking a fair solution for the benefit of the national economy.
Source: Khmer Times
Lady Aegies觀點: To be continue...............
