Weekly news round-up / Week 38
Political (Cambodia-Specific)
- No Changes Likely to Nauru Deal After Australian Political Shift 15-09-15
http://www.khmertimeskh.com/news/15767/no-changes-likely-to-nauru-deal-after-australian-political-shift/
Whilst the new PM is considered more liberal than Tony Abbott, it is understood that there is bipartisan support to continue the agreement with Cambodia and to generally maintain a tough stance on immigration.
- Int’l bar group rips Kingdom’s courts 18-09-15
A delegation from the International Bar Association’s (IBA) Human Rights Institution has recommended the IBA reconsidered Cambodia’s membership on the basis of a study describing corruption, bribery and political influence within all levels of the judiciary. The delegation reported hearing that 90% of cases involve some form of bribery.
The study also considered three laws passed last year to have extended executive control over the courts. In particular, they expressed concern over the role of the Justice Minister in appointing, promoting, disciplining and removing judges, resulting in CPP-aligned judges gaining favour.
The delegation criticized the Bar Association of the Kingdom of Cambodia (BAKC), which it says plays an “unconstructive, frequently obstructionist and biased” role in Cambodia’s legal system and makes applicants pay large bribes to be admitted.
Ministry of Justice spokesman Chin Malin denied that the ministry interfered in the judiciary, saying the authors’ research was narrow.
Infrastructure, Development and Core Industries
- Cambodian ports see cargo shipment growth in 8 months of 2015 11-09-15
Figures for the first 8 months of the year show cargo traffic to have increased by 19% y-o-y at Sihanoukville Autonomous Port (SAP, over 260,000 standard-sized container equivalents) and 8% at Phnom Penh Autonomous Port (PPAP, over 96,000).
Main products imported into Cambodia via SAP were garment raw materials, automobiles, construction materials and petroleum, while major items exported from the country were garment and footwear products and milled rice.
- Test results please many 14-09-15
Over half of grade 12 students taking national exams this year have passed, marking a significant improvement on last year’s results, when nearly two-thirds failed amid sweeping anti-cheating reforms. The pass rate for the exam, which must be passed for those hoping to enroll in four-year university courses, was 55.8% compared with 25.7% last year. The previous year, prior to anti-cheating reforms, had a pass rate of 87%.
However, the majority of those who passed (36,000 of 46,450) did so with an E grade. Only 108 candidates received an A.
H.E. Dr. Om Yentieng, head of the Anti-Corruption Unit, which has helped to implement the reforms, also celebrated the results - “This year's result clearly confirms that the reforms are really effective,” he said. “Even the students believe in the reforms and they stopped relying on power, money or luck [to pass the test], but depended on their effort in studying instead.”
- New bourse rules to lure SMEs 15-09-15
The Securities and Exchange Commission of Cambodia (SECC), regulator of the Cambodia Stock Exchange (CSX), has released criteria for a new trading platform aimed at attracting small and medium-sized companies.
The ‘Growth Board’ will require a minimum operating capital of $500,000, significantly less than the $10m required for the main CSX board. Companies are required to provide only one year of audited financial results when listing, compared to three for the main board. Unlike the main board, there will be no minimum amount to be raised in a public offering.
“We give the possibility of choices for SMEs to raise capital, beyond just financing and banking options … It will strengthen and expand SMEs by implementing better business administration and organization in their businesses.” Commented Sok Dara, deputy direct general of SECC. A lack of formal registration and balance sheets is an obstacle for many SMEs who would potentially consider listing.
- Five-country Visa may Take Effect Next Year 15-09-15
A ‘Five Countries, One Destination’ single-visa program between Cambodia, Thailand, Laos, Vietnam and Myanmar which has been under consideration for 10 years may finally be implemented next year according to Khmer Times. However, the article does not refer to any specific commitments made recently by the five national governments, only that delegates at a regional meeting had agreed to make efforts to simply visa applications and cross-border transportation. The Ministry of Tourism declined to comment.
Collectively, the five countries welcomed 45 million tourists last year, including 4.5m in Cambodia.
- New Strategy Lures Skittish Villagers to Solar 17-09-15
Coverage of the Enrich Forum on Sustainable Development 2015 which took place on Thursday 17th September. The Khmer Times picked up on the presentation of Dennis Barbian from Netherlands Development Organization (SNV), who commented on how scam articles selling below-standard solar panels had created skepticism towards solar amongst rural villagers.
SNV intends to tackle this problem with the launch of the Good Solar Initiative, a quality assurance brand. Dennis Barbian commented that “Consumer trust is the greatest challenge … we need this quality assurance framework - to have this quality awareness out there ...the systems that we certify, the way they are designed, they will last for many, many years.”
SNV also provides a results-based financial incentive scheme to solar providers in order to help investment in reaching far-flung communities.
Thematic pieces
- Rival On The Rise 12-09-15
Post Weekend piece on Myanmar’s structural reforms and possible impact on Cambodia’s economy. Lack of investment and infrastructure keeps costs of doing business in Myanmar high for the time being, though industry analysts point to Myanmar’s investment in deep sea ports and superior SEZs giving the country the potential to surpass Cambodia in terms of competitiveness. Concern for Cambodia as the two countries prioritize similar sectors for economic development, including rice and garments.
Takes the rice industry as an example – Myanmar exported a total of 1.7m tons last year (much of it to China), compared to Cambodia’s 387,000. Whilst Cambodia’s higher-quality fragrant rice remains competitive, Myanmar has been upgrading its facilities and expects to be able to compete over the coming years. In particular there is concern that recognition of Cambodia as a lower-middle income country will result in loss of Everything But Arms privileges, which will help Myanmar to be even more competitive.
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