Week 566

Tuesday, 24.6.2008: Fuel Prices and Inflation Are Not Expected to Decline after the 2008 Election

Norbert Klein 2 Comments

The Mirror, Vol. 12, No. 566

“Phnom Penh: Civil society organizations mentioned that fuel prices seem to be higher and inflation remains stable nowadays, and it is assumed that after the coming fourth term parliamentary election, although a new government will be created, it will not be possible to solve these problems.

“Mr. Yang Saing Koma, Director of the Center for Studies and Development of Cambodian Agriculture, [CEDAC], told reporters at the Cambodiana Hotel on 19 June 2008 that food prices, which are steadily increasing and are a global phenomenon, push that in Cambodia the prices of all kinds of goods are increasing at the moment.

“He added that from August to September, the Cambodian rice price might continue to rise, because farmers might run out of paddy rice from the storage rooms while they at the same time want to sell it, because there is a lot of demand at the market, and domestic supplies are not enough; this will increase the price of rice to be higher, or at least it will remain at the present level.

“Ms. Chea Vannath, an independent analyst, she said that although after the forth term parliamentary election, and after a new government will have been created, still the price of fuel and inflation will not decline. Quite the opposite, ‘The situation will threaten the poverty alleviation strategy of the Royal Government.’

“Similarly, Mr. Chan Sophal, the president of the Cambodian Economic Association, said that the price of crude oil at the international market may further increase in the future. Therefore, the price of fuel in Cambodia is not expected to drop. He continued that inflation gets higher because of two factors – a domestic factor and an external factor. He explained that at the present time, the prices of all kinds of goods at the international market increase strongly because of the shortage of food. As for the domestic factor, there is a group of people who sell land, and they have income from this, but this group also needs domestic materials and food, and because the domestic products are not sufficiently available, the inflation grows higher.

“To solve the increase of fuel prices and of inflation, Cambodia could follow the model of Iran, Malaysia, and Indonesia. These countries have created systems to sell fuel or rice by setting two different pricing policies – to sell to the rich at higher, and to the poor at cheaper prices. The sale of fuel to the rich is established for those who drive luxury cars when they go to fill fuel at the gasoline stations. This example was raised by Ms. Chea Vannath; as for Mr. Chan Sophal, he added that the government can reduce the tax on oil imports, and this can reduce the price of fuel. As for inflation, the government has to increase the yields of cultivation, and handle land disputes better.

“Observers noticed that nowadays citizens in Cambodia sell land or leave their land unused while they have disputes; these are obstacles to increase the yield of rice in Cambodia.

“Regarding this issue, Mr. Ith Nody, undersecretary of state of the Ministry of Agriculture, Forestry, and Fisheries, told reporters at the Hotel Cambodiana on 19 June 2008 that the government knows these problems and has measures to deal with them. The government will provide social concession land to citizens with the support of the World Bank and a Japanese fund by using social land concessions in Kompong Cham, Kratie, and Kompong Thom, but he did not give any details about the size of those social land concessions.

“He added that merchants have bought land from citizens and left the land unused. The government, when necessary, will require those merchants to pay land taxes to the state.

“Last Friday, Khmer Sthapana had tried to phone to ask for some explanation about the continuing rising price of fuel from the Senior Minister of Economy and Finance, but could not reach him.

“However, Mr. Keat Chhon has told reporters a few days ago that the government has prepared approximately US$30 million to spend this year quietly and has tired to prevent inflation, which is a phenomenon in foreign countries, to keep the price of fuel from increasing further.

“According to a recent report of the Asian Development Bank, inflation in Asia is a threat to poverty alleviation strategies and affects investments and incomes, creating instability for several governments.” Khmer Sthapana, Vol.1, #21, 24.6.2008

Newspapers Appearing on the Newsstand:
Tuesday, 24 June 2008


Kampuchea Thmey, Vol.7, #1675, 24.6.2008

  • Political Parties React to the Prohibition of the [Phnom Penh] Municipality for the Election Campaign [which bans all political parties to march in important places in the city, such as Monivong Boulevard, Norodom Boulevard, and Mao Tse-Tung Boulevard, and all big markets]
  • Opposition Party Parliamentarian [Mr. Son Chhay] Called on the King to Be Concerned with the Case of Tim Sakhan [who has been defrocked on an accusation of having perpetrated an offense against the Buddhist law, because he is accused to have destroyed the harmony between Vietnam and Cambodia, now jailed in Vietnam] during His Visit to Vietnam [from 24 to 26 June 2008]
  • Workers Can Rest from One to Three Days to Travel to Vote [as announced by the National Election Committee, after getting this Information from the Ministry of Labor and Vocational Training]
  • The Cambodia Movement for Health [CMH] Shows that 98% of Cambodian Citizens Countrywide Support Prohibition of Tobacco Broadcast Advertising
  • Thai Official [of the Ministry of Foreign Affairs]: “The Preah Vihear Temple Is in Khmer Territory”
    Thai Prime Minister [Samak Sundaravej] Will Resign from His Position if the Assembly Passes a No-Confidence Vote


Khmer Sthapana, Vol.1, #21, 24.6.2008

  • Fuel Prices and Inflation Are Not Expected to Decline after the 2008 Election
  • [The US ambassador to Cambodia] Mr. Joseph A. Mussomeli Predicted the Cambodian People’s Party Will Win the Election [speaking to reporters in Pailin on 23 June 2008]


Koh Santepheap, Vol.41, #6379, 24.6.2008

  • The Cambodian People’s Party Stance: In Case Funcinpec Wins No Seat in the National Assembly, the Cambodian People’s Party Will Form the Government Alone [said Prime Minister Hun Sen in Pursat on 23 June 2008]
  • Grade 2 Teacher Is Accused of Raping Five [little girl] Students. When this Became Known, He Escaped from the School [Kratie]
  • Tropical Cyclone Fengshen [風神] Raises Number of Deaths up to 598, and 740 People Are Still Missing in the Philippines
  • Zimbabwe’s Opposition Leader [Morgan Tsvangirai] Announced to Withdraw form the Election

    Moneaksekar Khmer, Vol.15, #3494, 24.6.2008

  • Ceremony to Burn Drugs Hold at the Time when [US presidential candidate from the Republican Party] John McCain’s Wife [Ms. Cindy McCain] Came to Cambodia [23 June 2008]

Rasmei Kampuchea, Vol.16, #4623, 24.6.2008

  • Cambodia Closed the Access to the Preah Vihear Temple Temporarily [on the evening of 22 June 2008]; the Thai Prime Minister Blamed the Protest [by the Thai Senate about the Thai government’s agreement to the Cambodian map, claiming it violates the Thai constitution] to Be Not Justified
  • Prime Minister [Hun Sen] Finished a Public Speech by Asking Not to Voice any Reactions against the Election Results [by the losing parities, and he said that after 23 June 2008, he will not make any speech on radio or television]

Have a look at the last editorial – it is almost frightening to see to which extent there are strong emotions, disregarding related legal documents.

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