The Mirror, Vol. 12, No. 593
“The Cambodian economy, which should continue to grow now, seems to be like a jammed brake, because investment capital this year declined up to [the figures available for] November, where foreign investment capital for construction, which is an important sector, decreased by more than 12%. Tens of thousands of workers are laid off, and this affects one important part of industry and then also others.
“The financial crisis strongly affects the construction sector in Cambodia, because big investment capital is mainly coming from foreign countries; as for investors from South Korea, they are directly affected by the meltdown of the economy in the United States of America.
“The latest figure of the Royal Government published, said that during 11 months of 2008, investment in the construction sector and in related furniture development declined by 12.5%; compared to the same period of last year, it declined from US$3.2 billion to US$2,8 billion. This figure is from the Ministry of Land Management, Urban Planning and Construction.
“The above problems result from the decline of construction, from the prices of furniture materials, and from the meltdown of the world economy as a whole, while the construction sector around the world encountered also the same problems during 11 months of this year.
“As for Cambodia, the labor unions say that 30% of the construction workers are laid off, and various projects are suspended. The Ministry of Land Management, Urban Planning and Construction said that Cambodia had between 45,000 and 50,000 workers employed, with salaries between US$60 and US$1,200.
“Senior Minister and Minister of Land Management, Urban Planning and Construction H.E. Im Chhun Lim said that such meltdown happened at the same time of foreign investment projects being under development, and it is forecast that in 2009 the decline will continue.
“The problems in the construction sector strongly affect the prices of construction materials… prices declined around 30% to 40%; but even so, such materials cannot be sold, and businesspeople who had invested in this sector mostly did it depending on bank loans.
“He went on to say that big construction projects, such as the construction projects of the CamKo City [Cambodian-Korean City], or the double Gold Tower 42 [42 stories], and of the International Finance Center Tower, are still in progress, but they are not stable.
“Between June and November, there were around 1,869 construction sites countrywide, while in 2007, there had been 1,942.
“It is the first time that figures are released, after press reports had said that big construction projects in our country – in Phnom Penh – have all closed down.
“The president of the Cambodian Economic Association, Mr. Chan Sophal, shared his opinion that the construction sector was seriously affected during the last six months of this year, and in early 2009 it will get worse…
“The Cambodian Economy grew 10% on average during previous years, with the garment industry, tourism, and the construction sector as energetic forces.” Mate Nak, Vol.1, #16, 31.12.2008-6.1.2009
Newspapers Appearing on the Newsstand:
Wednesday, 31 December 2008
Areyathor, Vol.15, #1374, 31.12.2008
- Nine Pawn Houses’ Illegalities [accepting stolen motorcycles etc.] Were Stopped [in Phnom Penh]
Deum Ampil, Vol.2, #102, 31.12.2008-1.1.2009
- The Supreme Court Will Decide the Fates of Born Samnang and Sok Sam Oeun This Morning [appealing their conviction for killing the president of the Cambodian Free Trade Union of Workers, Mr. Chea Vichea, in 2004 – Note: They have been released on bail!]
- The National Assembly Decided to Allow Two Chinese Companies to Invest in the Electricity Supply System in Cambodia, Spending Around US$1 Billion [by constructing hydro-electricity dams on the Ta Tai River in Koh Kong, and the Russey Krom hydro-electricity dam near the Kravanh Mountains]
Kampuchea Thmey, Vol.7, #1834, 31.12.2008
- The King Inaugurates a New Building of the Jayavarman VII Children’s Hospital in Siem Reap
- The Ministry of Heath Prepares Six Health Hazard Warning Pictures to Be Put in Turn on Cigarette Packages
- Israel Strongly Attacks the Hamas Group in Garza; 345 Palestinians and 4 Israelis Died [Note: After years of international criticism against the political system in the Palestinian territories, in early 2006 there were the first democratic elections – and Hamas won the majority in Gaza]
- Sheikh Hasina Leads Election Results in Bangladesh [Note: Unofficial results say she won 255 seats, her rival only 32, out of 300]
Khmer Sthapana, Vol.1, #172, 31.12.2008
- An Official of the Department of Education Voices Concern about the Future of Children and of Human Resources in Some Regions, where Children Drop Out of School to Become Merchandise Cart Draggers [at the Phnom Dey Cambodian-Thai border crossing point in Battambang]
- Khmer Women Getting Married with Korean Men Wait Anxiously for Leaving [to Korea, after the ban of international marriages has been lifted]
Koh Santepheap, Vol.41, #6539, 31.12.2008
- The Thai Parliament Met in the Ministry of Foreign Affairs, while Red-Shirt Demonstrators [supporters of ousted prime minister Thaksin Shinawatra] Continue to Block the Parliament House and Refuse to Withdraw
Mate Nak, Vol.1, #16, 31.12.2008-6.1.2009
- 30% of Construction Workers Are Unemployed
Moneaksekar Khmer, Vol.15, #3653, 31.12.2008
- [Minister of Interior] Sar Kheng Acknowledges that There Is Corruption among High Ranking Police Officers
Rasmei Kampuchea, Vol.16, #4782, 31.12.2008
- The First Elevated Road in Cambodia, from Phnom Penh to Ta Khmao [in Kandal], Received Construction Permission [by the Phnom Penh Municipality]
- Vietnam Said that Merchants Are Rushing to Smuggle Goods from the Khmer Border into Vietnam [in An Giang Province]
Samleng Yuvachun Khmer, Vol.15, #3467, 31.12.2008
- Siamese [Thai] Minister of Foreign Affairs [Kasit Piromya] Greeted [Cambodian Minister of Foreign Affairs] Mr. Hor Namhong by Phone and Plans to Visit Cambodia Officially [but the date of his visit is not yet fixed]
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