According to an announcement by the Ministry of Trade and Industry (MTI), Singapore’s Second Minister for Home Affairs and Trade and Industry S Iswaran has made an official visit to Cambodia on Monday, 21 July 2014. He was accompanied by officials from the MTI, Ministry of Foreign Affairs and International Enterprise Singapore and was scheduled to meet Cambodian Deputy Prime Minister Sar Kheng, Senior Minister of Commerce Sun Chanthol and Minister of Mines and Energy Suy Sem.
SingaporeCompanyIncorporation.sg anticipates that the visit will bolster economic ties between Singapore and Cambodia and create opportunities for Singapore-based companies. Minister Iswaran is expected to participate in a business networking session co-organised by International Enterprise Singapore (IE Singapore) and the Singapore Business Federation (SBF), which are leading an 18-member business delegation to Phnom Penh and Siem Reap.
SBF last led a business delegation comprising of 17 Singapore companies to Cambodia on 14 – 18 November 2012. The visit was due to a strong interest in the Cambodian market by Singapore companies in search of an alternative production base as well as an overseas start-up location.
In 2012, Singapore was Cambodia’s 6th largest trading partner and its investments in Cambodia grew 11% y-o-y, amounting to 240 million in 2012.
According to MTI, Singapore-based companies have invested in Cambodia in sectors such as property development, hospitality, energy, lifestyle business, garment, agriculture and logistics. Bilateral trade has grown 17% since 2010 and amounted to $1.6 billion in 2013.
CAMBODIA SET TO GROW IN 2014 – 2015
According to an announcement by World Bank titled Cambodia’s Economy Remains Strong at 7.4% in 2013 (07/04/2014), Cambodia’s economic growth for 2014 is projected to reach 7.2%. This is based on continued global economic recovery, the return of stability to the domestic economic environment and renewed confidence over the rest of the year. Last year, its economic growth registered 7.4% due to accelerated garment exports and continued growth in tourism.
In addition, the Asian Development Bank (ADB) anticipates that Cambodia will grow 7% this year and 7.3% in 2015. This is according to its Asian Development Outlook 2014 released in April 2014.
Commenting on Singapore’s move to bolster economic ties with the country, Ms. Cheryl Lee, Operations Manager at SingaporeCompanyIncorporation.sg commented, “According to the ADB, Cambodia has seen robust and steady growth over the past 2 decaces and in spite of recent political uncertainty. In light of Cambodia’s growth prospects, the strategy bodes well for Singapore-based companies that wish to have a presence in Cambodia, especially those in the garment and footwear as well as wholesale trading industries. These companies stand to benefit from duty-free export access to the EU and the US. In addition, Cambodia’s urbanization plans will create opportunities for Singapore firms in the areas of health and nutrition, infrastructure and vocational training as well.”