The Mirror, Vol. 12, No. 582
“There are indications that the value of stocks at the stock exchanges in every country in Asia and in Europe dropped. Can Cambodia avoid this crisis? Experts expressed different opinions.
“Mr. Huot Pum, a professor of economics of the Royal University of Law and Economics, said that the financial crisis will not affect the Cambodian financial system, because Cambodia did not have a stock market, and the fields of insurance and of investors in Cambodia in general do not have much financial relations with the outside world. The Professor said, ‘It will not affect our financial system. Most banks in Cambodia do not have money to buy stocks from foreign countries.’ Mr. Sum Sonnisith, the secretary general of the National Bank said, ‘Our banking system is not affected by this crisis, because there is not yet a full integration into the world economy.’
“However, according to Mr. Huot Pum, this crisis might affect the economy, like the garment sector and the tourist industry, as Cambodia exports most of its garment products to the United States market. Regarding this crisis, Mr. Van Sou Ieng, the president of the Garment Manufactures Association of Cambodia, pointed out that the recent closing down of some garment factories in Cambodia resulted from the influence of the financial crisis in the United States.
“Mr. Vong Sandap, the secretary general of the Ministry of Economy and Finance, said that more or less, the crisis in the United States will really affect Cambodia, for example, in the field of real estate, which is in stagnation. Mr. Sandap added, ‘Facing this crisis, the Cambodian government has taken some action by increasing the minimal capital to be kept by banks from 8% to 16%, and has set a limit for providing loans for buying real estate.
“As for Mr. Chan Sophal, the president of the Cambodian Economic Association, he did not deny the negative impacts of this crisis on Cambodia. Mr. Chan Sophal thinks that different influences relate to foreign investors. This economist analyzed, ‘When the crisis happens, some foreign investors, who have sustained negative impacts from the crisis, will not come to invest in Cambodia.’ On the other hand, this crisis might encourage some investors to look at some countries which are different, including Cambodia. In the period of three years, from 2005 to 2007, the economy grew continually, but this year, the economic growth will drops to 7% because of the rising price of goods. The present crisis will slow down Cambodian economic growth in 2008.
“Cambodia, which was suffered from more than thirty years civil war, has just started to implement a free market economic system early in the 1990s. Although there is such freedom and openness, the Cambodian economy has not had specific relations with the regional and international economy. That is why Cambodia could avoid the financial crisis in 1997 in Asia, and this time also, Cambodia does not get much affected. Cambodia does not benefit much from the international economy, but it also does not sustain much negative impact from the international crisis.” Cambodge Soir, Vol.2, #54, 16-22.10.2008
Newspapers Appearing on the Newsstand:
Friday, 17 October 2008
Cambodge Soir, Vol.2, #54, 16-22.10.2008
- Cambodia Will Not Be Much Affected by the World Financial Crisis
Chakraval, Vol.16, #2819, 17.10.2008
- Many Soldiers of Military Region 5 Started to Shoot, and They Burnt down Citizens’ Houses [of 415 families] to Grab Land [Kos Krolor, Battambang]
Kampuchea Thmey, Vol.7, #1770, 17.10.2008
- Cambodian and Siamese [Thai] Regional Frontline Negotiations Achieved Good Results [both sides agreed to stop fighting and turn to negotiations through the Ministers of Foreign Affairs and through the Prime Ministers]
- The Fuel Price Declines to Less than US$71 per Barrel
Khmer Machas Srok, Vol.2, #265, 17.10.2008
- The Cambodian Watchdog Council Asks [Prime Minister Hun Sen] to Stop Negotiations and War [and send a complaint to the Court in the Hague and to the UN Security Council]
Khmer Sthapana, Vol.1, #119, 17.10.2008
- [Minister of Foreign Affairs]: Diplomatic Relations of Cambodia and Siam [Thailand] Remain as Good as Normal
- The US Embassy: Cambodia and Thailand Must Seek Peaceful Solutions to End the Dispute Rather Than Using Armed Forces
Koh Santepheap, Vol.41, #6475, 17.10.2008
- Accusation that Cambodia Lays New Mines near the Border Is Rejected [by Cambodia]; War of More Than Three Decades Leaves Many Mines
Meatophum, Vol.52, #708, 17-25.10.2008
- Cambodia Informed the UN Security Council about the Armed Conflict on 15 October 2008
Moneaksekar Khmer, Vol.15, #3590, 17.10.2008
- The Sam Rainsy Party Condemns Siamese Troops Invading Khmer Territory at Many Points [according a letter from the party]
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The International Community Must Link Conditions with Aid for Cambodia [a suggestion of civil society organizations]
Puth Theavy [a candidate for the Bar Association elections] Asked to Stop Gift-Giving to Buy Votes for the Elections to Choose the President of the Bar Association [according to the results, Lawyer Chiv Song Hak received 325 votes, so he is the new president of the Bar Association, the lawyer Puth Theavy got 123 votes, and the lawyer Ouk Phouri 8 votes]
Rasmei Kampuchea, Vol.16, #4718, 17.10.2008
- Samdech Dekchor Welcomes Investment in the Field of Agriculture by Philippine Investors
- Korean Experts Come to Present a Publication Related to Creating a Stock Exchange in Cambodia [to start in 2009]
Samleng Yuvachun Khmer, Vol.15, #3427, 17.10.2008
- Opportunists [economic police] Block Vendors Fleeing from the Armed Conflict Border [to extort money –Oddar Meanchey]
Sangkum Khmer, Vol.7, #111, 16-22.10.2008
- Cambodia Has a High and Worrying Rate of Hepatitis B Infections [according to a workshop by expert doctors from Singapore]
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