Property News Roundup 3rd April 2024
We’re delighted to share the weekly news highlights below.
- Economic Expert Is Optimistic about Cambodia Moving on from Least-Developed Country Status
The Cambodian government has set the goal of having the country leave the ranks of the Least Developed Countries (LDCs) by 2027. This is also the year the United Nations Development Policy Committee had projected in 2021 that this would happen. According to Ky Sereyvath, an economy expert with the Royal Academy of Cambodia, accomplishing this would help the country gain independence in the economic sector, and especially support the development of the agriculture sector and human resources, which would contribute to Cambodia’s economic growth.
March 24, 2024 | Cambodianess | Link: https://tinyurl.com/5pjpjeef
- World Bank Approves Additional US$35-million Credit for Road Improvement Project in Cambodia
The World Bank has approved an additional $35 million credit to strengthen road infrastructure in three Cambodian provinces to address the impacts of climate change. This funding supplements the ongoing Cambodia Road Connectivity Improvement Project (RCIP), which aims to improve access to markets, healthcare facilities, and educational institutions in Kratie, Kampong Cham, and Tbaung Khmum provinces. These provinces, with a combined population of over 2 million people, mostly living in rural areas, will benefit from upgraded road networks designed to withstand climate-related challenges. The RCIP focuses on areas identified as highly vulnerable to climate risks, with inadequate pavement coverage and floodwater management.
March 25, 2024 | Construction and Property | Link: https://tinyurl.com/ya6m8kt5
- Riel usage in microfinance transactions increases
The use of Cambodian Riel (KHR) has gradually increased in deposits, credits and payment transactions at microfinance institutions, reflecting a notable shift in the public’s saving habits with the local currency, according to the Cambodia Microfinance Association (CMA). The sector reported that 25 percent of KHR 5.56 trillion (approximately $1.38 billion) loans and 16 percent of KHR 1.52 trillion (approximately $375 million) deposits were now denominated in riel in 2023. The central bank has promoted the use of riel in the banking system through various initiatives including lowering the transaction fee in KHR, requiring banking and financial institutions to have at least 10 percent KHR credit in total loan disbursements besides other measures such as liquidity-provided collateralized operation (LPCO).
March 26, 2024 | Khmer Times | Link: https://tinyurl.com/3mbr3648
- China pushes banks to speed approvals of new loans to private developers: Reuters
Chinese regulators are urging banks to accelerate the approval process for new loans to private property developers in order to boost homebuyer sentiment and alleviate the liquidity constraints faced by the sector. This measure, known as the “whitelist” mechanism, aims to revive the property market and counter the prolonged decline in new home prices. Despite previous calls from Beijing, major domestic banks have been cautious in increasing their exposure to the troubled sector, dampening hopes of a recovery in an industry crucial to the Chinese economy. The property sector in China has faced a series of challenges since 2021 due to regulatory actions targeting high leverage among developers, which triggered a liquidity crisis.
March 25, 2024 | CNBC | Link: https://tinyurl.com/mr3e3a8b
- Cambodia ranked as one of Singaporeans’ top real estate investment destinations
Cambodia has remained one of the most desirable locations for offshore property investments by Singaporean nationals over the past three-year period. The analysis of the Juwai IQI noted that Cambodian investments in both property development and individual condo units remain competitive to Singaporean owners looking for stronger investment returns than domestic real estate assets are able to generate. In particular, Singaporean property developers and investors are making their presence known in the high-end condominiums development sector in Phnom Penh.
March 27, 2024 | Khmer Times | Link: https://tinyurl.com/2dyrxdne
- Maryland: Ship hits Francis Scott Key Bridge causing it to collapse
In a significant gesture of enduring friendship and collaboration, China has bestowed Cambodia with a The Francis Scott Key Bridge along I-695 in Maryland collapsed into the Baltimore harbor following a “ship strike” early Tuesday morning, setting off a search and rescue mission for those who plunged into the chilly waters. A cargo ship colliding with a support beam, causing the bridge to break apart and fall into the Patapsco River. Multiple vehicles were on the bridge at the time, but no update on casualties has been offered.
March 26, 2024 | Fox News | Link: https://tinyurl.com/h7j7ae6c
- Thirteen Korean companies are looking for more investment opportunities in Cambodia
The debt load of the U.S. is growing at a quicker clip in recent months, increasing about $1 trillion nearly every Thirteen prominent Korean companies, led by Mr. Hacheong Yun, Director General of the Korea Trade and Investment Promotion Agency (KOTRA Phnom Penh), have expressed keen interest in expanding their investment footprint in Cambodia. The Deputy PM underscored Cambodia’s allure as an investment destination, citing factors such as political stability, robust economic growth, currency stability, skilled workforce, and ongoing infrastructure development. In addition, Cambodian government introduced incentives to attract investment in key sectors, particularly heavy industries such as electronics assembly, automobile manufacturing, and technology projects.
March 27, 2024 | The Construction and Property | Link: https://tinyurl.com/yztx992t
- Cambodia, Laos will have a border crossing bridge across in future
Cambodian government and the Government of Laos PDR are in talks regarding the construction of a border crossing bridge, enhancing bilateral cooperation between the two nations. PM Samdech Hun Manet of Cambodia and PM HE Sonexay Siphandone of Laos PDR deliberated on this significant project during their meeting in Vientiane on March 25. The proposed bridge, spanning the Ropov River between Preah Vihear province in Cambodia and Champasak province in Laos PDR, aims to bolster connectivity and facilitate smoother cross-border trade and travel.
March 27, 2024 | Construction and Property | Link: https://tinyurl.com/yebb8rd3
- Kingdom mulling high-speed railway link with Lao
Vientiane, has reportedly received a green light from the Cambodian Government for possible cooperation in developing the railway network in Cambodia and high-speed railway link between Cambodia and Laos PDR. Representatives from the Laos-China Railway proposed the project in a meeting with Prime Minister Hun Manet in Vientiane during his two-day official visit to Laos. Welcoming the company’s initiative, Mr Hun Manet asked the firm to work with Royal Railway, Lim Heng, Vice President of the Cambodia Chamber of Commerce.
March 28, 2024 | Khmer Times | Link: https://tinyurl.com/2dcvpnb2
- China’s Xi meets American CEOs to boost confidence in world’s second largest economy
Chinese leader Xi Jinping met more than a dozen US CEOs and academics on Wednesday as Beijing renewed efforts to woo back foreign investors and mend strained relations with the United States. Foreign direct investment in China has slumped in recent months as a combination of slower growth, regulatory crackdowns, onerous national security legislation and questions about the country’s long-term prospects have shaken confidence in the world’s second biggest economy.
March 27, 2024 | CNN| Link: https://tinyurl.com/yv4s2bk4
- The “Moradok Techo” Flyover will be completed on March 30 and open early next month
The first phase of the “Moradok Techo” flyover, connecting Samdech Techo Hun Sen Blvd. and Monivong Blvd., is poised for completion by March 30, 2024, with plans to open its second floor to traffic on April 1, 2024, announced by the Phnom Penh Capital Administration in Announcement No. 024/24 dated March 28, 2024. In anticipation of the upcoming Khmer New Year and to alleviate traffic congestion at the boulevard intersection, the Phnom Penh Capital Administration, with approval from the three Prime Ministers, has decided to temporarily inaugurate the “Morakot Techo” flyover on April 1, 2024.
March 28, 2024 | Construction and Property | Link: https://tinyurl.com/4w4y76dt
- Wing Bank: A powerful catalyst for Cambodia’s banking transformation
Wing Bank (Cambodia) Plc has emerged as a transformative force in the Cambodian banking sector, with traditional banking institutions often struggling to reach the vast unbanked population residing in rural areas prior to its arrival. Recent developments include Wing Bank Digital Loan, which offers secure loans through the Wing Bank App, eliminating paperwork and reducing disbursement time to just two minutes. Wingcoin is a blockchain-based rewards program incentivizing users for transactions within the Wing Bank App, and the “Save for Goal” Account is a dedicated solution for individuals aiming to achieve specific financial objectives.
March 28, 2024 | Phnom Penh Post | Link: https://tinyurl.com/m696e3a4