Economists: A Cambodia Stock Market Can Use Both the Dollar and the Riel – Thursday, 8.7.2010

Posted on 9 July 2010. Filed under: Week 672 | Tags: , , , , , , , , , |

The Mirror, Vol. 14, No. 672

“Phnom Penh: The stock market of Cambodia scheduled to be established at the end of this year might use both Dollar and Riel.

“A Secretary of State of the Ministry of Economy and Finance, Mr. Hang Chuonarong, said on 6 July 2010, after a press conference at the office of the Asian Development Bank in Cambodia, that this is a choice being discussed by stock market experts, but so far, no official decision has been made. He added, ‘The government has nothing decided, but experts, highly skilled in stock exchange matters, are thoroughly discussing and studying its advantages and disadvantages.’

“According to the Principal Economist in the Office of Regional Economic Integration of the Asian Development Bank, Mr. Jayant Menon, the choice to use both currencies (Dollar and Riel) is a mechanism that Cambodia must take into consideration, because it is related to the currency polices, and the polices about interest rates, especially the stability of the Riel, the national currency of Cambodia.

“He went on to say that to invest by using the Dollar or the Riel is not a problem for the operation of the stock market in Cambodia, but it depends on where Cambodia wants investments to flow to. He added that the problem is whether Cambodia needs local or needs foreign investment. If Cambodia needs foreign investment, foreign investors might find it somewhat difficult to invest in the stock exchange of Cambodia.

“So far, the Dollar, the US currency, is used for 90% of the transaction value [the Riel is used for 10%] at the markets and for payments in Cambodia, while in Laos, it is used only for 50%, and in Vietnam for merely 20%.

“Regarding this issue, Mr. Narong recognizes this point, but he said that the use of the Dollar has both positive and negative qualities. He explained that the use of the Dollar is good, because its value does not change much, it is easy for settling payments in exports, and it attracts foreign investment for economic growth, but it can cause difficulties for the authorities to manage currency policies and some other problems.” Rasmei Kampuchea, Vol.18, #5244, 8.7.2010

Newspapers Appearing on the Newsstand:
Thursday, 8 July 2010

Kampuchea Thmey, Vol.9, #2295, 8.7.2010

  • Cambodia, Laos, and Vietnam Will Cooperate to Solve Dollarization Problems [to deal with challenges that result from using different currencies in the economy, to allow the three countries to promote efficient currency policies and currency exchange policies]
  • Samdech Hun Sen and His Wife Donated Two Male Elephants to the [South] Korean Government [for breeding]

Koh Santepheap, Vol.43, #7002, 8.7.2010

  • Police Intercepted a Twelve-Seater Car Loaded with 110 Pieces of Ebony, and a Person Who Tried to Protect the Wood Claiming that He Is a Military Police Officer [finally police seized the car and arrest the driver – Takeo]

Moneaksekar Khmer, Vol.17, #3926, 8.7.2010

  • Cambodia Loses US$20 Million to US$90 Million per Year because of Failures in Its Dollarization Policy [according to studies by the Supreme National Economic Council – (interesting: its web site has also a non-operational button Call for donation) – the International Monetary Fund, and the Asian Development Bank, the extensive use of dollars in Cambodia, on the one hand, helps attract foreign investment and trade and enables the banking and financial systems to improve quickly through the increase of deposited money, the prevention of market disturbances, and the inflation of the prices of goods – but, on the other hand, it weakens the possibility of the National Bank of Cambodia to create its own currency policies, including for the prevention of financial crisises in the banking system, the control of the inflation rate of currency exchanges, and the printing of currency notes]
  • The Court Will Issue a Warrant to Detain [Sam Rainsy Party parliamentarian] Mu Sochua on 16 July 2010 if She Does Not Pay a Fine by the Deadline [for losing a defamation case against Prime Minister Hun Sen]

Phnom Penh Post [Khmer Edition], Vol.1, #2, 8.7.2010

  • The World Bank: Cambodia Is Very Open for Foreign Investments [compared to other countries in Southeast Asia and in the Pacific, but It Takes Longer [to launch an operation in Cambodia, which takes 86 days on average, while in other countries, it takes only 42 days]
  • The Phnom Penh Municipality Starts to Construct a Demonstration Compound [at a park near the Canadia Bank’s High Rise Building]

Rasmei Kampuchea, Vol.18, #5244, 8.7.2010

  • Economists: A Cambodia Stock Market Can Use Both the Dollar and the Riel
  • Cambodia Denied that Thai Red-Shirt [anti-government] Leaders Take Shelter in Siem Reap [the Thai Prime Minister said that two red-shirt leaders are hiding in Cambodia]
  • More Than 6,000 People Suffered Injuries and Death along the Road [within six months of 2010, there were 3,040 cases of traffic accidents in Cambodia which killed 991 people, seriously injured 2,853, and lightly injured 2,562]

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Japan Plans to Invest to Plant Trees in Cambodia – Monday, 16.11.2009

Posted on 18 November 2009. Filed under: Week 639 | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

The Mirror, Vol. 13, No. 639

“Phnom Penh: A high ranking official of the Japanese Embassy to Cambodia told the Minister of the Ministry of Agriculture, Forestry, and Fisheries that some Japanese big companies plan to invest in Cambodia to plant trees, and one company has already conducted a study for such an investment.

“This information was shared by the Japanese Ambassador to Cambodia, Mr. Kuroki Masafumi, when he met with the Minister of Agriculture, Forestry, and Fisheries, Mr. Chan Sarun, in the evening of 12 November 2009. The chief of cabinet of the Ministry of Agriculture, Mr. Hong Narith, told Rasmei Kampuchea on 13 November 2009, during the cordial meeting, that Mr. Masafumi told the minister that following the results from the first Mekong-Japan meeting in Japan recently, where the Action 63 projects, includes the Green Mekong project, had been mentioned, some big investment companies of Japan are interested in investing in tree plantations, and one company had already studied this in three provinces – Kompong Chhnang, Kampot, and Ratanakiri. The study was finished, and implementation will follow soon. The ambassador asked for support from the Minister of Agriculture, Forestry, and Fisheries in this field.

“The chief of cabinet said that the Minister of Agriculture, Forestry, and Fisheries had expressed full support for this crucial project. Also, he said that there is no problem with land in Kompong Chhnang, as it is state land. In the meantime, the minister asked the ambassador to help attract investors to invest in manufacturing agricultural products for export, as there are not many investments in that sector.

“During the meeting, the Minister of Agriculture, Forestry, and Fisheries expressed his gratitude towards Japan for assisting Cambodia so far, also a lot in the field of agriculture. Practically, at present, Japan is creating an aquaculture development center in Sihanoukville, amounting US$10 million.

“A project of capacity building to monitor agricultural quality standards is very important for addressing food security, and for attracting other projects that help to deal with Cambodian agricultural market problems and to promote public health.” Rasmei Kampuchea, Vol.17, #50, 15-16.11.2009

Newspapers Appearing on the Newsstand:
Monday, 16 November 2009

Deum Ampil, Vol.3, #3, 15-16.11.2009

  • [Thai ousted prime minister] Thaksin Shinawatra Left Cambodia Safely while [Thai Prime Minister] Abhisit Vijjajiva Failed to Get Him Arrested
  • US$11 Million Is Provided to the National Disaster Committee for Three Years [2009-2011; aid from the Japanese government, the European Union, and the World Bank]
  • The Director of a Water Filter Company Was Shot Dead by [anonymous] Gunmen [police concluded it is a case of rancor and seeks to arrest the perpetrators – Phnom Penh]
  • A Foreign [Swedish] Man Was Assaulted and Killed, and His Body Was Found in Kandal Stung District [the perpetrators are not yet identified – Kandal]

Kampuchea Thmey, Vol.8, #20, 15-16.11.2009

  • Three Big Banks [the Bank for Investment and Development of Cambodia (BIDC), the Canadia Bank, and the Foreign Trade Bank] Joined to Provide US$33 Million in Loans to the Rural Development Bank for Paddy Rice Purchasing in 2009-2010
  • Cambodian and Laotian Deputy Prime Ministers [Mr. Hor Namhong and Mr. Thoung Loun Sisoulith] Had a Friendly Meeting to Talk about the Setting of Border Markers [both countries want to make the 121 temporary border markers already set – covering to 86% of the border, officially designated border markers]
  • A Cambodia Youth [Mr. Em Chanmakara] Won the Southeast Asian Awards for 2009 for Producing a Television Program with the Topic ‘Everybody Supports Children’
  • Because His Father Got Drunk [and committed domestic violence], a Son Attacked Him [together with two cousins] with a Knife with a Long Handle [and killed him – the son was arrested – Pursat]

Khmer Amatak, Vol.3, #675, 16.11.2009

  • Some Businesspeople in Phnom Penh Live with Fear because [Phnom Penh police chief] Touch Naruth Is Incompetent [to prevent murder crimes against businesspeople]

Khmer Machas Srok, Vol.3, #530, 15-16.11.2009

  • [The spokesperson of the Sam Rainsy Party] Mr. Yim Sovann: Thaksin Shinawatra Has Nothing New to Say [about economic reforms for Cambodia, like the organizing of an investment atmosphere with competitors that obey the law]

Koh Santepheap, Vol.42, #6803, 16.11.2009

  • The National Assembly Rejected The Request [of the Sam Rainsy Party] to Delay the Meeting to Suspend Mr. Sam Rainsy’s Immunity [to make way for the Svay Rieng Municipal Court to open an investigation regarding his participation in the removal of six temporary wooden border markers on the Cambodian-Vietnamese Border]
  • The Apsara Authority Removed More Than 600 Big and Small Buildings, Accusing Them of Violating the Angkor Resorts Area [Siem Reap]

Phnom Penh Post [Khmer Edition], Vol.1, #46, 16.11.2009

  • The Cambodian Stock Market Building Will Be Opened on a Small Scale in Early 2010 [according to the Ministry of Economy and Finance]
  • Now Cambodia Should Be Included as a Member of APEC [a news source from Singapore said that Cambodia will become a member of APEC, if delaying measures by other members are not allowed]
  • ASEAN and the USA Asked Burma to Conduct Free Elections

Rasmei Kampuchea, Vol.17, #50, 15-16.11.2009

  • Japan Plans to Invest to Plant Trees in Cambodia
  • The Thai Embassy Is Worried about Security, but Cambodia Said It Should Not Worry about That [Cambodia will fulfill its obligation to protect the Thai Embassy in Phnom Penh]
  • Embassy Delegation of the “ASEAN plus 3” [India and Australia] Who Came to Play Golf Were Warmly Welcomed at the Poipet Border Crossing
  • [Forty two] Cambodian Security Forces Set to Move to Fulfill a UN Mission [as peace keepers] to Chad and to the Republic of Central Africa

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Cambodia Will Start the First Stock Market in December, but Will Not Be Successful as Planned – Wednesday, 21.1.2009

Posted on 22 January 2009. Filed under: Week 596 | Tags: , , , , , , , , , , , , , , , , , , , , , , , |

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The Mirror, Vol. 13, No. 596

“Phnom Penh: The meltdown of the global economy, the lack of trust from investors, the lack of skills, the weakness of laws and of the judicial system, and corruption are considered by experts to be obstacles against the expected success of a stock market in Cambodia. This assessment is made as Cambodia plans to start the process of its first stock market in December 2009.

“It should be noted that a stock market is a gathering forum which allows investors and the general people to invest in companies that they trust, in order bring back profits for them. Those companies participating in a stock market can sell their shares to anybody and take the money like a loan for extending their activities, expecting profit; citizens can buy shares in order to become shareholders and co-owners of a shares selling company. Such clients can receive benefits, as long as the company makes profit.

“At present, the global economy is facing a crisis, and the stock markets of all countries are low, because many owners of shares sold their shares in order to recoup [as much as is left of their] original capital, and many other potential customers give up their intentions to invest in the stock market.

“The Chief Researcher of the Cambodian Institute for Cooperation and Peace, Mr. Chab Sothearith, said that the general loss of trust from investors will make it difficult for a stock market in Cambodia to take off.

“In should be noted that the Cambodian government announced a stock market project in September 2007 with Korea Exchange of South Korea, which put up 45% of the share capital as a partner immediately. After the announcement, the Cambodia Securities and Stock Exchange Law was adopted, and a Securities Commission of Cambodia was created, to encourage the creation of a stock exchange, which will issue shares and take action against companies that violate the law.

“However, stock exchange experts said that Cambodia still has a lot of shortcomings which are an obstacle for the progress of starting a stock exchange at the end of this year.

“An advisor of the National Accounting Council and finance professor of the Royal University of Economy and Law, Mr. Soum Chanthy, said that so far, Cambodia has very few stock market experts and does not have a proper and sufficiently complex technical basis to meet the operations of a stock market.

“In addition, Cambodia needs a firm legal system and courts with high capabilities to quickly and justly solve issues related to doing business in a stock market.

“Mr. Soum Chanthy added that although there is still one year left to create a stock market, Cambodia is not yet capable to meet all shortcomings mentioned above, making the stock market plan progress slowly.

“The director of the Cambodia Institute of Development Studies, Mr. Kang Chandararoth, said that while Cambodia has not yet an anti-corruption law, the creation of a stock market will provide high hazards, and losses will have to be faced by investors.

“The Cambodian government has not yet adopted an anti-corruption law for many years.

“Mr. Kang Chandararath went on to say that corruption can happen at state and private companies, like hiding facts in financial reports about capital, losses, and profits.

“It should be noted that part of success of a successful investment of capital depends on good governance and financial transparency of companies; their situation needs to be disclosed publicly; however, among more than 2,000 enterprises operating in Cambodia, less than 20% publish annual reports. This information comes from the National Accounting Council at the Ministry of Economy and Finance.

“A secretary of state of the Ministry of Economy and Finance, Mr. Ngy Tayi, agreed with the definition of the problems mentioned above, and he said that at present, the Ministry continues to encourage different companies to organize their reports properly before they are allowed to participate in the stock market. In the meantime, the director of the general commercial development project of Korea Exchange, Mr. In Myo Lee [phonetic], said that a stock market can help to reduce corruption in Cambodia.

“Cambodia wants to attract national and international investors from more than 400 companies to this stock market, but so far, according to Korean investors who are partners, there are only three state-controlled companies which plan to register something at the stock market of Cambodia.” Khmer Sthapana, Vol.2, #188, 21.1.2009

Newspapers Appearing on the Newsstand:
Wednesday, 21 January 2009

Cheat Khmer, Vol.1, #8, 21.1.2009

  • The Vietnamese Authorities Released [five] Khmer Kampuchea Krom Monks, but Prohibit Them to be Ordained as Monks Again [according to the president of the Khmer Kampuchea Krom Association, Mr. Thach Setha]

Deum Ampil, Vol.3, #108, 21.1.2009

  • The Ministry of Culture Restricts the Implementation of the Copyright Law
  • Cambodia Prepares to Host an ASEAN Foreign Affair Ministerial Meeting with the European Union [27 and 28] May 2009

Kampuchea Thmey, Vol.8, #1852, 21.1.2009

  • The Court Summons Sam Rainsy to Come to Explain [issues of a lawsuit of the National Election Committee against him for not paying Riel 10 million, charged by the National Election Committee for defaming leaders of the Cambodian People Party during election campaign in 2008]
  • Cambodia Liberated 18,000 Children from Serious Forms of Labor in 2008 [it is estimated that there are more than 1.5 million child workers in Cambodia, and among them, 250,000 are doing serious forms of labor]
  • Siam [Thailand] Will Investigate the Allegation that There Are Rights Violations against [Muslim] Rohingya Migrants [by sending them in boats to the sea]

Khmer Sthapana, Vol.2, #188, 21.1.2009

  • Cambodia Will Start the First Stock Market in December, but Will Not Be Successful as Planned
  • Leaders of Both Opposition Parties [the Human Rights and the Sam Rainsy Party] in the National Assembly Ask the King to Grant a Great Title to Eminent Leader Chea Vichea [the president of the Free Trade Union of Workers of the Kingdom of Cambodia who was murdered in 2004]
  • Puea Thai Party Wants Mr. Thaksin [ousted former Thai Prime Minister] as an Advisor

Koh Santepheap, Vol.42, #6557, 21.1.2009

  • The Government Announces Two Positions for Solving Land Disputes: 1. Prevent Armed Clashes and 2. Continue Bilateral Negotiations
  • Two Suspects Who Are [paddy rice] Guards Are Arrested for Setting Fire on 30 Hectares of Paddy Rice Sheafs [corresponding to around 50 tonnes of paddy rice] During the Night [Battambang]
  • A One-Year and Nine-Month Old Girl Was Killed by Twisting Her Neck, and Thrown into a Fish Raising Pond by a Brutal Person [perpetrator is not yet identified – Pursat]

Moneaksekar Khmer, Vol.16, #3671, 21.1.2009

  • The Artificially As Murderers Accused [Born Samnang and Sok Sam Oeun, who were recently released on bail] Are Invited to Join the Firth Anniversary of the Murder of the Former President of the Free Trade Union of Workers of the Kingdom of Cambodia Chea Vichea

Rasmei Angkor, Vol.16, #1405, 21.1.2009

  • [The Commander of the National Military Police] Mr. Sao Sokha: The Shooting of Protesters [by Kandal Stung district military police, which caused three people to be injured] Is Being Investigated

Rasmei Kampuchea, Vol.17, #4800, 21.1.2009

  • Samdech Hun Sen Announces His Intention to Meet with New Thai Prime Minister to Talk about Border Disputes [and he will not raise the disputes between Cambodia and Thailand during the ASEAN summit]
  • The Economic Crisis Will Make at Least 70,000 Workers Unemployed by May 2009 [25,000 workers already lost their employment]
  • Three People [driving on a motorbike] Died after Being Hit and Run Over by a Truck [Kandal]
  • New US Ambassador [Ms. Carol A. Rodley] Presents Her Diplomatic Credentials to the King

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