Week 563

Thursday, 5.6.2008: Mr. Sam Rainsy Says that Good Investors Will Not Come to Invest in a Country Where Leaders Are Corrupt-to-the-Bone like in Cambodia

The Mirror, Vol. 12, No. 563

“Observers said that the year 2008 is a most important year for Khmer citizens, for more than eight million voters, to change to a new leader to lead the government until 2013.

“However, early 2008 investments in Cambodia declined to nearly 50 percent of the period of three months, compared to the same period in early 2007.

“According to a summary report by the Council for the Development of Cambodia [CDC], in the period of three months, private investments in Cambodia covered in total US$253 million, which is less than that during last year, covering US$503 million. This report showed that foreign investment declined from US$282 million for the period of three months in early 2007 to US$162 million for the same period of early 2008; and also local investment declined from US$221 million for the same period of 2007 to only more than US$90 million in 2008.

“The CDC report added that in terms of foreign investments in the period of three months of 2008, Singapore ranked first with US$48 million, China ranked second with US$32 million, and South Korea ranked third with US$30 million. However, in the period of three months of 2007, the investments from China had been first with US$66 million, and South Korea had been third with US$38 million.

“An economic analyst said that the decline will affect the labor force, and economic growth will also decline. There are two reasons leading to this problem – the decline of garment exports, and the decline of the constructions of high rise buildings, flats, and houses, mostly by investments from South Korea. This decline might affect the everyday livelihood of citizens and might increase poverty.

“Regarding the above issue, Mr. Sam Rainsy, a famous opposition leader and an economist, criticized the government, claiming that the decline is because of corruption, which makes good investors not to dare to invest in Cambodia.

“He said, ‘It does not mean only the decline of quantity, but also the decline of quality, because there is more corruption in Cambodia than in other countries; therefore good investors will not come to invest in a country where leaders are corrupt-to-the-bone like in Cambodia, and companies that dare to invest in Cambodia are mostly problematic companies.

“The report of the CDC showed also that in 2007, the total investment covered US$2,700 million, of which US$1,200 million came form tourism, and US$708 million came from physical infrastructure and services, US$374 million came from industries and factories, and US$363 million came from agro-industries. In 2007 investment from China ranked first with US$461 million invested in big hydro-electricity plants, and South Korea ranked third with US$152 million.

“Some economic observers in Cambodia noted that investment in 2007 was lower than that in 2006, and in 2008 it will decline more than in 2007. This decline was mainly because of corruption and heavy bureaucratic procedures in important institutions, making big investors afraid of investing in Cambodia.

“Economic observers in Cambodia claim that some important state institutions which are full of corruption are the Council of Ministers of Cambodia, administered by Sok An, who is Hun Sen’s in-law, the Ministry of Economy and Finance managed by Keat Chhon, the former advisor to Pol Pot, the Ministry of Commerce administered by Cham Prasidh, Sok An’s in-law, the Customs and Excise office administered by Pen Siman, the CDC, and the Department of the Economic Police of the Ministry of Interior.

“Some officials of civil society organizations mentioned that in the Cambodia Development Cooperation Forum meeting on 19 and 20 June 2007, the power addicted Hun Sen, head of the Royal Government of Cambodia, promised the international community and the donor countries that he would adopt an anti-corruption law soon; however, after the international community and the donor countries had agreed to provide aid of nearly US$600 million to Cambodia, he did not keep his promise. In contrast, he let corruption spread further than before, making foreign investors not to come to invest in Cambodia.” Moneaksekar Khmer, Vol.15, #3478, 5.6.2008

Newspapers Appearing on the Newsstand:
Thursday, 5 June 2008


Chuoy Khmer, Vol.2, #114, 5.6.2008

  • The Accused Chea Ratha Hires a Lawyer to Sue [against the warrant of the Phnom Penh Court prosecutors and investigating judges] to Open a Way Back for Her to the Country, Saying that a Third Person Was behind the Acid Attack [on Ms. In Soklida’s aunt]


Kampuchea Thmey, Vol.7, #1658, 5.6.2008

  • [Former Khmer Rouge leader] Khiev Samphan’s Illness Gets More Serious [according to his wife, Mr. Khiev Samphan cannot speak and is partly paralyzed]
  • [Prime Minister] Samdech Hun Sen Announced that He Will Not Participate in the Election Campaign
  • The US Will Provide Nearly US$1 Million for the Preservation of the Phnom Bak Khaeng Temple [according to the US Embassy in Phnom Penh]
  • The Government Advises All State Institutions to Save Electricity
  • Price of Land and of Houses in Phnom Penh Stays Still High


Khmer Machas Srok, Vol.2, #169, 5.6.2008

  • Khmer Kampuchea Krom Association Strongly Condemned Phnom Penh Authorities [for prohibiting them to commemorate at a public site, the 59th anniversary of France cutting Khmer land off and giving it to Yuon – Vietnam – but to hold it at the headquarters of the Khmer Kampuchea Krom Association with limited space, also criticizing the arrests of monks like the Vietnamese government did]
  • Investment Declines, because There Is Serious Corruption


Koh Santepheap, Vol.41, #6363, 5.6.2008

  • Merchants Are Cutting Down Trees on Phnom Kulen; It Is Reported that There Are Ten Sites Splitting Trees
  • Cambodia Ranked 21st [with a high rate of primary and a lower rate of secondary education] among 129 Countries ranked by UNESCO
  • Korea Intends to Plant Trees and Preserve Forests in the Angkor Area where there Are Temples [according to Mr. Hun Sen’s assistant Mr. Ieng Sophalet]
  • Robbers with AK Assault Rifles Shot Dead Husband and Wife to Take a Gold Box [on 3 June 2008 – Battambang]
  • Vietnam Opens Way for the Construction of a Nuclear Plant


Moneaksekar Khmer, Vol.15, #3478, 5.6.2008

  • Mr. Sam Rainsy Says that Good Investors Will Not Come to Invest in a Country Where Leaders Are Corrupt-to-the-Bone like in Cambodia
  • [Sam Rainsy Party parliamentarian] Mr. Kuoy Bunroeun Asked the National Election Committee to Include People from Political Parties to Join in the Distributions of Information Leaflets [4 June 2008]

Have a look at last week’s editorial: Setting priorities – what to do to remove some dangerous obstacles, to get safer roads

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