Property News Roundup December 12th, 2023
We’re delighted to share the weekly news highlights below.
- Digital Map Set up to Identify Land Plots and Ownership in Cambodia
The Ministry of Post and Telecommunications and the Ministry of Land Management, Urban Planning and Construction in Cambodia have launched a platform to facilitate socio-economic development planning. The platform, which is part of the Cambodia Digital Government Policy 2022-2035, allows ministries to insert sector-specific data, such as the location of terminal antennas. It also features a standard QR code on real estate ownership certificates, enabling land plots to be identified online. The platform aims to provide reliable information, saving time and money for individuals and businesses. It uses QR codes linked to blockchain technology for document security. So far, around 30 ministries and higher-education institutions have set up platforms as part of this strategy.
December 3, 2023 | Cambodianess | Link: https://tinyurl.com/4e476cm7
- Work on new hydropower plant in Cambodia goes smoothly
The Upper Tatay Hydropower Station in Cambodia, designed with a capacity of 150 MWs, is currently 31.5% complete. The project, invested by the China National Heavy Machinery Corporation (CHMC), operates under a 39-year build-operate-transfer contract, with four years allocated for construction and 35 years for operations. The construction, which began in December 2022, has completed necessary infrastructure including a road, a bridge, and an administration building. Once fully operational, the station is expected to generate 527 million kilowatt-hours of electricity annually, which will be sold to the state-owned Electricity of Cambodia.
December 1, 2023 | Khmer Times | Link: https://tinyurl.com/bdd8k3da
- Manet offers guidelines for coastal development
Prime Minister Hun Manet has instructed the Ministry of Tourism and the governors of Preah Sihanouk, Kampot, Koh Kong, and Kep provinces to prepare master plans for the development of these coastal provinces. These plans aim to unlock the potential of each location while ensuring long-term preservation. The goal is to establish the provinces as a common strength, supporting each other rather than competing. The tourism ministry is also tasked with developing more tourism products and services to attract visitors, thereby boosting the national economy and promoting Cambodia globally. The first 10 months of the year saw about 4.4 million international guests and 12.2 million domestic visitors, with projections reaching 5.4 and 15 million, respectively, by the end of 2023.
December 5, 2023 | The Phnom Penh Post | Link: https://tinyurl.com/4jbb8ch3
- Tariff cuts on electricity to help energise tourism: EAC
The Cambodian government has decided to lower electricity prices by 15% for three months, from December 2023 to February 2024, for business owners and traders in the tourism sector connected to medium and high voltage networks. The aim is to support the recovery of the sector, which has been hit by the Covid-19 pandemic and the Russia-Ukraine war. The policy does not apply to other sectors such as education, health, finance, transportation and administration. Consumers who qualify for the subsidy can apply with their local electricity supplier. The continuation of the initiative will depend on the financial feasibility of the Electricity of Cambodia.
December 5, 2023 | The Phnom Penh Post | Link: https://tinyurl.com/mwwbaub3
- Cambodian travellers can now connect their Visa cards with China’s digital wallets to bolster payment experience
Visa has partnered with Tencent and Alipay to allow Cambodian travelers in China to add their Visa cards to Weixin Pay and Alipay digital wallets. This enables them to pay for purchases at millions of stores in mainland China using various methods such as QR codes, payment codes, and in-app payments. Visa cards are now accepted at merchant locations in over 400 cities in mainland China and on major online platforms. Additionally, Visa and Tencent Financial Technology are partnering to enable Weixin users to receive inbound remittance in their digital wallets, extending the Visa Direct network to more than one billion Weixin users in mainland China.
December 6, 2023 | Khmer Times | Link: https://tinyurl.com/46mmn2t5
- China examines the possibility of establishing a medical industrial zone in Cambodia
Guangzhou Youdi Biotechnology, a Chinese medical company, is planning to establish a cutting-edge medical industrial zone in Cambodia. The company’s investment plans include the creation of a state-of-the-art medical product manufacturing plant and diagnostic equipment to meet the growing demand for medical products in Cambodia and the broader regional markets. The proposed medical industrial zone would include the production of medical equipment, research facilities, hospitals, and clinics. Guangzhou Youdi Biotechnology, founded in 2010, specializes in the development, production, and distribution of pharmaceutical raw materials and substances, and is set to play a significant role in shaping Cambodia’s medical industry.
December 6, 2023 | Construction & Property | Link: https://tinyurl.com/2bzfe6sc
- Cambodia’s exports to Indonesia, India rise sharply
Cambodia’s exports to Indonesia and India saw the sharpest growth among the top 20 export destinations, increasing by 65.5% and 57.7% respectively in the first 10 months of this year. However, exports to the US, the largest export destination, declined by 1.6% to $7.4 billion. Exports to Vietnam and China increased by 35.9% and 19.3% respectively. Cambodia’s imports from India declined by 20.2%, resulting in a trade surplus of $65.87 million, while imports from Indonesia increased by 9.6%. Cambodia and India are negotiating a Bilateral Investment Treaty and a Bilateral Free Trade Agreement to boost economic cooperation. Meanwhile, Cambodia’s exports to many European countries and Canada declined, indicating a slowdown in demand for garments, footwear, and travel goods.
December 5, 2023 | Khmer Times | Link: https://tinyurl.com/3py5xdec
- Forest City: Inside Malaysia’s Chinese-built ‘ghost city’
China’s largest property developer Country Garden unveiled Forest City – a $100bn (£78.9bn) mega-project under the Belt and Road Initiative – in 2016. At the time, the Chinese property boom was in full flow. Developers were borrowing colossal sums of money to build both home and abroad for middle-class buyers. In Malaysia, Country Garden’s plan was to build an eco-friendly metropolis featuring a golf course, waterpark, offices, bars and restaurants. The company said Forest City would eventually be home to nearly one million people. Eight years on, it stands as a barren reminder that you do not need to be in China to feel the effects of its property crisis. Currently, only 15% of the entire project has been built and, according to recent estimates, just over 1% of the total development is occupied. Despite facing debts of nearly $200bn, Country Garden told the BBC it is “optimistic” the full plan will be completed.
December 5, 2023 | BBC News | Link: https://tinyurl.com/3zxjbyuk
- China’s debt outlook downgraded as economy slows
The credit rating agency Moody’s has lowered its outlook on China’s debt from stable to negative, citing concerns about the government’s ability to support the local governments and state-owned enterprises that have borrowed heavily to finance infrastructure and property projects. China’s economy is facing multiple challenges, including slowing growth, rising unemployment, weak global demand, and a troubled property sector. China’s finance ministry said it was disappointed by Moody’s move and confident in its economic resilience and fiscal sustainability.
December 6, 2023 | BBC News | Link: https://tinyurl.com/5cy344yf
- Cambodia Unveils Strategic Tax Incentives Propelling Economic Growth Across Key Sectors
Recently, the Royal Government of Cambodia has introduced a number of measures to encourage businesses in the real estate sector affected by the Kovid 19 crisis and the global crisis, including taxation. It should be noted that the Royal Government of Cambodia has decided to waive property tax on real estate in some geographical areas in Cambodia. There is also a tax exemption on stamp duty, transfer of ownership or possession of all types of homes worth less than or equal to $ 70,000, and an increase in the tax period for package developers for housing developers. This type of tax has been exempted by the state once in 2022.
December 4, 2023 | Construction Property | Link: https://tinyurl.com/2s4cyfx2
- FTA boosts Cambodia’s apparel export to South Korea, reaches $173 million
Cambodia’s apparel exports to South Korea increased by 16.84% to $173.23 million in the first three quarters of 2023, likely surpassing 2022’s total of $191.37 million. This growth follows a Free Trade Agreement that came into effect in December 2022. South Korea’s share in Cambodia’s total apparel exports also increased to 2.05%. The trade has seen significant growth after the agreement, with South Korea’s share in Cambodia’s total apparel export also improving. Earlier figures show that Cambodia’s apparel export to South Korea was $167.151 million in 2021, $169.716 million in 2020, and $187.650 million in 2019.
December 5, 2023 | Khmer Times | Link: https://tinyurl.com/mwp8hhj3
- Chinese auto exporters face costly detour after Red Sea attacks
The recent spate of attacks against Israel-linked vessels could force cargo ships to divert from the key Red Sea shipping route, significantly increasing the cost and time of Chinese car exports to Europe. The Red Sea sits at the entrance to the Suez Canal, forming the shortest shipping route between Asia and Europe, making it crucial for trade between the two regions. Multiple commercial ships have been attacked or targeted in or around the Indian Ocean inlet since mid-November, including at least three Israel-linked ships, among which was the Galaxy Leader, a vehicle carrier seized by Yemeni rebels. If a ship carrying Chinese cars detours around the Cape of Good Hope at the southern tip of South Africa to Europe, the time en route will increase by two weeks. But many companies transporting vehicles from China may have no other option than to head south if they don’t want to run the risk of being attacked, as many car carriers they use are rented from Ray Car Carriers, a shipowner whose parent company was founded by Israeli shipping businessman Abraham Ungar.
December 6, 2023 | NIKKEI Asia | Link: https://tinyurl.com/2wxn3h7z