Nearly one third of Cambodia's population survive on only 50 US cents a day or lessWednesday, December 02, 2009
AFP
PHNOM PENH — The global financial crisis has caused Cambodia to push back its plans to open a national stock exchange this year, officials said Wednesday.
Cambodia signed an agreement last year with representatives from South Korea's stock exchange, the Korea Exchange (KRX), Asia's fourth-largest bourse operator, to establish a stock market in 2009.
However government officials said Wednesday that the Southeast Asian nation was not ready to go ahead with the plans due to the world financial slowdown.
"We are not ready in terms of capital... amid the financial crisis situation," said Mey Vann, director of the industry and finance department at Cambodia's ministry of finance and economy.
The new date for launching the stock market had not been set, he said, but the country planned to start operations or trading in late 2010, he told AFP.
"A stock market is good for our economy. It helps collect money outside the banking system for the investment," Mey Vann said.
While still among one of the world's poorest countries, Cambodia has emerged from decades of conflict as one of the region's rising economies.
But after several years of double-digit growth fuelled mainly by tourism and garment exports, Cambodia was buffeted by last year's global economic downturn.
The International Monetary Fund in September predicted Cambodia's economy will contract 2.75 percent this year amid the slowdown.
By comparison the economy grew by 10.25 percent in 2007 and was projected at 6.5 percent in 2008, according to the IMF. Last year's figure is still to be fully established.
Cambodia remains a largely cash-only economy and a high degree of mistrust keeps many people hoarding their money at home instead of using banks.
Nearly one third of Cambodia's 14 million people survive on only 50 US cents a day or less.
Cambodia signed an agreement last year with representatives from South Korea's stock exchange, the Korea Exchange (KRX), Asia's fourth-largest bourse operator, to establish a stock market in 2009.
However government officials said Wednesday that the Southeast Asian nation was not ready to go ahead with the plans due to the world financial slowdown.
"We are not ready in terms of capital... amid the financial crisis situation," said Mey Vann, director of the industry and finance department at Cambodia's ministry of finance and economy.
The new date for launching the stock market had not been set, he said, but the country planned to start operations or trading in late 2010, he told AFP.
"A stock market is good for our economy. It helps collect money outside the banking system for the investment," Mey Vann said.
While still among one of the world's poorest countries, Cambodia has emerged from decades of conflict as one of the region's rising economies.
But after several years of double-digit growth fuelled mainly by tourism and garment exports, Cambodia was buffeted by last year's global economic downturn.
The International Monetary Fund in September predicted Cambodia's economy will contract 2.75 percent this year amid the slowdown.
By comparison the economy grew by 10.25 percent in 2007 and was projected at 6.5 percent in 2008, according to the IMF. Last year's figure is still to be fully established.
Cambodia remains a largely cash-only economy and a high degree of mistrust keeps many people hoarding their money at home instead of using banks.
Nearly one third of Cambodia's 14 million people survive on only 50 US cents a day or less.
23 comments:
Cambodian companies are not ready to be listed. I am sad to see how our officials at the Ministry of Economy and Finance were embarked on the stock market project by the Koreans without any thorough feasibility study. Do we have enough humen resources, skill and regulation? What is exactly the level of reliability of our companies compared with the standard?
Actually Cambodian corporate leaders are doing business without any knowledge of true and fair financial statements, they are ignoring the words integrity and transparency in doing business. They do not know what is good corporate governance and they are not ready to adopt the rule and compliance. Cambodian companies do not have culture to follow the laws and regulation.
Ta Cambodian accounting and auditing standards are in force and should be used by companies. Only 5% of companies leaders know this. With this figure, and with what is said above which are the basic rule of companies, how the MoEF can believe that they can build the SX in Cambodia with obligation to apply IFRS (international financial reporting standard) from A to Z?
It is wise to postpone this project. Next time, please think our own human resources rather than relying on the Koreans whose goal is only to make money at all costs.
This Plan is not good.
And about this plan lot of information thanks for share it.
Motorbike Clothing
the border today
It is also even sad that the Cambodian government will tax everything from staff's salary to property for their fiscal year 2010. People will be poorer and poorer, and these high rankig government officials dont care about people's lives for a long time.
Well, imho, because we do not have enough human resources for the time being that's why we have to rely on the Koreans to get the things running.. isn't that logic? For those companies who wish to list on the Exchange, they will have to brace themselves for good corporate governance, application of applicable Accounting standards, strict compliance with the applicable rules and regulation, etc.. This would help raise awareness among the private sector on the part of corporate responsibilities and so forth. Local and international professional firms (e.g. Audit and Advisory firms, Lawyers, Investment Banks, etc.) will also play an important role in educating companies and help generate the necessary human resources for the stock market in that regard.. i.e. the stock market will generate the necessary [local] human resources and a workable mechanism for itself in the long run... :D
The regime is nothing but a crock of shit.
Stock market in Cambodia! oh god,just like throw the many in to the sea.
I read this comments and think:
Can Cambodian People not hold together and help each other?
Khmer speak bad about Khmer people.
What is wrong with a Cambodian Stock Exchange?
The biggest Cambodian Companies with Okhna Owners will get "fresh money" from foreigners.
100s of Millions of Dollars will come into this Country. Some of this money which of course will go to the rich people but also will find their way to the poor people.
This is a good thing.
Now you compare Cambodian with the USA. Most of the money of the rich American People is already outside the USA.
Henry Paulson the former Minister of Finance example invested more than 1 Trillion US Dollar into Gold Mines in South Africa.
Guess why he not invested it inside USA?
So please dont be stupid. Cambodian need investors from outside Cambodia and a Stock Exchange is the best way to get this money!
Hopefully the Stock Exchange can open soon!
9:30pm, I am with you.
It's a shame to those Khmers you mentioned that see political gain as more important than the prosperity of their own mother land. Their motivation behind their action is obvious.
A lot of stupid comments. Not the stock market! Communist countries in the past didn't have stock market because they have the same attitudes about the richs and the poors.
Everyday, you'll be lucky to have 2 meals a day in Cambodia. I have seen many children are undernourished. Where is the Cambodian Red Cross? How come the government continually ignored the needs of her citizens.
STARVING ERA IS UPON US AGAIN. THE GOVERNMENT IS TOO INCOMPETENT AND HAS MORAL PRINCIPLES OF OTHERS BESIDE ME, MINE, AND MYSELF.
People who don't go forward, actually go backward. So many times we hear negative comments on economic development in Cambodia. Sure bet, all that is political games. You can be for the stock market or against the stock market. The 2008 economic woes is a result of the cyclical market downturns. And there is always a good and bad corporation, whether in USA, in Europe or elsewhere. You should expect bad apples amongst Cambodian companies which will be listing in Cambodia Stock Exchange.
i think it is cambodia's lack of the welfare system or social services system like we take for granted in the USA, really. it probably has nothing to do with gov't. it's take a society to stand up and be educated and demand reforms or revamps of the social services system, really. cambodia has no social services system where disadvantaged people, etc, can go for help or assistance, whether financial, medical, etc..., really. now think about it,ok! call for a revamp healthcare and education system if you want to make a real difference. don't just give handouts because it doesn't teach people anything; plus, handouts are good only for temporary but the problems don't go away, really. go figure, ok!
i know, some individuals don't make an effort to educate themselves and others. they only run their foul mouth to no avail. i guess they are dreaming or wishful thinking or something. what, they expect a perfect world. stop being biased against cambodia, instead call for reforms in the social services system, etc, really! that's more proactive and will definitely make a real difference for people in cambodia and will leave a permanent marks there as well, really! may god bless cambodia in this new adventure, etc...
OPEN IT,FOOLS , AND SEE WHOS ARE GOING TO PUT MONY THEIR, VIETNAMESE MOTHERFUCKERS????
yes, when the last time cambodia had a real social services system? really!
Hun Sen will take all stock money when he gone from office.Country withou law using muscle and corrupted everyday just like Cambodia, how do i trust?.
For a country that is nearly and solely depending on the foreign country aid, and now it wants to open a stock market in a rampant-corrupt country. Before the investment, I suggest the investors to assess all the factors in which couold affect and come back to haunt you, if you're truly wanted to invest in Cambodia.
The real fact of the matter is that Cambodia is not the ideal country for foreign investors to consider. Your money is better off with other country--not Cambodia.
http://top-karaoke.blogspot.com/
http://www.top-funny.co.cc
http://qnet168.blogspot.com
http://it-anywhere.blogspot.com/
people all have two choices, to take or not to take, which ever is more interesting, really! have some spice in your life for a change, really!
have you ever heard of social services? that could be the key to disadvantage people in cambodia, really! if so lack of concept, study from the USA, ok!
has any one who post here been buying and selling company stocks at a stock exchange in a developped country before? if they have then at least their posts will have credibility, either on the pro or the con side. If not, those posters will not understand that you need a legal, banking and commercial framework that WORK (not one on paper) - because it's like putting the cart before the horse. it's got nothing to do with being backward or anti- progress. it's about avoiding being ripped off by con artists.
1:59 PM
If you are Thais or Viets, please stay in your countries. You do not have to come investing in Cambodia stock market. Americans, Koreans, Singaporeans, etc. are keen to invest in our country Cambodia. So please, stay far away from our country!
Post a Comment