Craig Guthrie
The Mekong Times
The landslide victory which the Cambodian People’s Party (CPP) appears to have secured in last Sunday’s election will enhance the Kingdom’s reputation as an up-and-coming investment destination and bodes well for future economic stability, say foreign investors and business leaders.
“This election result was a best case scenario for investors,” said Douglas Clayton, the CEO of Leopard Capital, one of several private-equity funds which, in the last few months, have revealed plans to inject a total of US$500 million into the economy.
The government’s fresh mandate will ensure continuity in its investment policy and at the same time put the opposition in a stronger position to perform its monitoring function, he added.
Independent electoral watchdog the Committee for Free and Fair Elections (COMFREL), has preliminarily announced that the CPP won around 90 of the National Assembly’s 123 seats in the election, or 73 percent of the national vote.
“A lot of local business activity has been put on hold pending the elections, and things should get back to normal now that this is out of the way,” said Clayton, whose firm has so far raised more than a tenth of the US$100 million it plans for its Cambodia-dedicated fund, Leopard Cambodia.
The CPP wore its economic credentials on its sleeve during the campaign, with many voters choosing to support the party which has delivered double-digit growth figures in recent years and rising Foreign Direct Investment (FDI) levels.
“Businessmen like stability and predictability, and that is what the government delivered for the past five years, which has led to good economic growth,” said Bretton Sciaroni, the chairman of Cambodia’s International Business Club.
He said that the election process barely registered on investors’ horizons this year, in stark contrast to previous votes.
“Investors have kept coming to Cambodia regardless of the fact that the nation was heading into an election. At most, there might have been one to two months of slowdown, which is a far cry from the six months slowdown which the nation had during previous elections.”
Although international observers have said some aspects of the election failed to meet international standards, on the whole the vote has been described as “smooth,” and as having much lower levels of violence, intimidation and political interference than previous elections.
“The fact that the elections were well managed and peaceful demonstrates significant progress on Cambodia’s part — definitely very encouraging for foreign investors,” said Marvin Yeo, co-founder of Frontier Investment & Development Partners.
Yeo, whose firm plans to establish a US$250 million private-equity fund in Cambodia, says that there will “absolutely” be a positive reaction from investors to the government’s re-election.
The Cambodia Investment Board predicted this year that FDI levels are on track to reach US$5.4 billion in 2008, while the launch of a stock exchange in December 2009 is hoped will lead local companies down a newly forged path of transparency and financial maturity.
John Brinsden, vice chairman of Acleda Bank, which has set benchmarks for transparency levels in Cambodia and is widely expected to list on the stock exchange, said that the private sector had largely anticipated that the CPP would come out of the election with a workable majority.
“This is important in two ways,” said Brinsden. “Firstly, our customers have been telling us that for economic growth to continue there must be stability and continuity. Secondly, and as important in its own way, is that the new government’s performance in office will be under more detailed scrutiny.”
Ruling on their own will test the government’s leadership by exposing them to a much higher level of accountability, he said.
He added that the election has been good for the country as a whole, and business in particular, by demonstrating to the world that despite its difficult history and still high levels of poverty Cambodia is capable of running a generally democratic and peaceful election.
“This fact will dramatically change international perceptions and encourage foreign investment into Cambodia,” said Brinsden.
“This election result was a best case scenario for investors,” said Douglas Clayton, the CEO of Leopard Capital, one of several private-equity funds which, in the last few months, have revealed plans to inject a total of US$500 million into the economy.
The government’s fresh mandate will ensure continuity in its investment policy and at the same time put the opposition in a stronger position to perform its monitoring function, he added.
Independent electoral watchdog the Committee for Free and Fair Elections (COMFREL), has preliminarily announced that the CPP won around 90 of the National Assembly’s 123 seats in the election, or 73 percent of the national vote.
“A lot of local business activity has been put on hold pending the elections, and things should get back to normal now that this is out of the way,” said Clayton, whose firm has so far raised more than a tenth of the US$100 million it plans for its Cambodia-dedicated fund, Leopard Cambodia.
The CPP wore its economic credentials on its sleeve during the campaign, with many voters choosing to support the party which has delivered double-digit growth figures in recent years and rising Foreign Direct Investment (FDI) levels.
“Businessmen like stability and predictability, and that is what the government delivered for the past five years, which has led to good economic growth,” said Bretton Sciaroni, the chairman of Cambodia’s International Business Club.
He said that the election process barely registered on investors’ horizons this year, in stark contrast to previous votes.
“Investors have kept coming to Cambodia regardless of the fact that the nation was heading into an election. At most, there might have been one to two months of slowdown, which is a far cry from the six months slowdown which the nation had during previous elections.”
Although international observers have said some aspects of the election failed to meet international standards, on the whole the vote has been described as “smooth,” and as having much lower levels of violence, intimidation and political interference than previous elections.
“The fact that the elections were well managed and peaceful demonstrates significant progress on Cambodia’s part — definitely very encouraging for foreign investors,” said Marvin Yeo, co-founder of Frontier Investment & Development Partners.
Yeo, whose firm plans to establish a US$250 million private-equity fund in Cambodia, says that there will “absolutely” be a positive reaction from investors to the government’s re-election.
The Cambodia Investment Board predicted this year that FDI levels are on track to reach US$5.4 billion in 2008, while the launch of a stock exchange in December 2009 is hoped will lead local companies down a newly forged path of transparency and financial maturity.
John Brinsden, vice chairman of Acleda Bank, which has set benchmarks for transparency levels in Cambodia and is widely expected to list on the stock exchange, said that the private sector had largely anticipated that the CPP would come out of the election with a workable majority.
“This is important in two ways,” said Brinsden. “Firstly, our customers have been telling us that for economic growth to continue there must be stability and continuity. Secondly, and as important in its own way, is that the new government’s performance in office will be under more detailed scrutiny.”
Ruling on their own will test the government’s leadership by exposing them to a much higher level of accountability, he said.
He added that the election has been good for the country as a whole, and business in particular, by demonstrating to the world that despite its difficult history and still high levels of poverty Cambodia is capable of running a generally democratic and peaceful election.
“This fact will dramatically change international perceptions and encourage foreign investment into Cambodia,” said Brinsden.
16 comments:
I love reading these types of article. *Cheers*
Why all the sudden the Preah Vihear issue is subsided?
The political scheme in which the ruling party choreographed and orchestrated was a brilliant execution that let to a landslide victory in the general election.
"If you can't beat them, join them!"
Let's work together to build a better future for Cambodia...
Soon we will have 40, 50, 60, 70, 80 story buidings all over Phnom Penh under Samdech Hun Sen brilliant open-door policy.
Achar Swah Wat Bopit
Yep, hopeful news, indeed. And we cannot have any tension at the border if we want investors. A Joint Development is a must.
Screw the joint development!
Given the global economic status, you think the investors will invest money in Cambodia. Think again.
I would discourage foreign investors to plunge their money in Cambodia.
Craig Guthrie
I think you are crazy!
We'll wait and see what happen, and see if your article is credible, because others will refute your too-optimistic-future idea in Cambodia. Also, let's hope that others don't discredit your work.
Again, we'll wait and see. Oh! I hope to be the first person to discredit you.
It is an optimistic news for Cambodia. But the border problem have to be solve properly as well. As mention in Thai Senate outline, they are looking more wider border issue not only Preah Vihear case. Now we know under the sea, there are oil. Hopefully, government will maintain its tough stand toward Thailand about this issue, and cancel all MOU that have been signed before military standoff in Preah Vihear. I read a news in 2005 that Sok An was discussing of join exploration of oil with Thailand in overlapping area, but I was not sure if there were any agreement at that time.
Opposition parties have to unite in order to monitor the government. If they still attack each other for their own agenda only, we will see weaker and weaker opposition from one election to another.
From now on, the SRP parliamentarians are like chickens. They can be cooked any time within a day, a night, an hour etc. if these parliamentarians dare to oppose the cpp
1:36, the investors will not invest in any area that is under dispute. They are not crazy.
1.44pm, yes, khmer rouge, majority doesn't mean you kill minority. go get a lesson from brain surgeon.
oppositon voice is a check and balance, to ensure leaders are not drunk in power and yuan pooh.
2:13pm, do you trust hunsen that mojority doesn't kill the minority? Pls wait and see, the immpunity of opposition parliamentarians will be lifted under the 4th term
You're right ,I agree that some jewish is the trouble maker and somes are business gangster.I also agree that khmer is one of the most intelligence people in the world.Unfortunately why such a intelligence people make cambodia like today?
If u are abroad ,u will know the feeling that when we tell other we are khmer.Then they ask where is cambodia? angkor wat? Oh I know ,cambodia is one of the poorest country in the world.Some khmers even tell other they're not khmer.It's real that i heard.
We proud our past but we have to face the present.Now we're one of the most poorest country in the world.How to prove the world that we are one of the most intelligent people?
i said about the jewish because they have good points that we can learn from them.How they build israel, how they connect the others jewish around the world to support Israel?
You and I have the same feeling that we want to build our country to make cambodia are one of the most prosperous country in the short future.
Thanks for Your comment!
Madboy
kh_madboy@yahoo.com
Now Sihanouk must be uncomfortable as his royal children and family are all evicted from politic.
When is his turn, Sihamoni?
When is the king will be select?
And WHO?
Investment is always welcomed, the people of Cambodia must move on and work hard to rebuild the country.
Guys,
Don't forget. In any capitalist country, the riches are built first. US is an example. If you don't like it, go back to communism.
1:35Am are you stupid! Any thing need carefull balance fool!
That why our religion teach us to find midleway!
Do not go to listen to Tep Vong preach like youe blind father! Tep Vong is an evil Impostor boyy!
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