Phnom Penh Monday, 12 July 2010
“We have to be careful and take a close look to see if we have more things to do relating to regulations to avoid risk.”Cambodia’s much-touted stock exchanged will not be opened at the end of the year as planned. Instead, worries after the Greek debt crisis and internal problems will delay the opening of the bourse until 2011.
Finance Minister Keat Chhon made the announcement at a business conference in Daejeon, South Korea, on Sunday. South Korea has been a main backer of the stock exchange, which has proven elusive, having first been delayed in 2009.
“We have to be careful and take a close look to see if we have more things to do relating to regulations to avoid risk,” Keat Chhon told the regional conference, “Asia 21: Leading the Way Forward.”
“Meanwhile, there are two internal problems regarding governance of regulators and companies,” he said.
Economic officials hope the exchange will boost growth. Already, the government has ordered three state-owned companies to prepare for a listing on the exchange: Sihanoukville Autonomous Port, Phnom Penh Water Supply Authority and Telecom Cambodia.
Keat Chhon said Sunday these companies need more time to get ready. He declined to elaborate on an exact month the exchange might open in 2011.
Cambodia’s Securities Exchange Commission is also now looking for a partner to provide training to government officials to help them educate the public about trading on the exchange.
“We will provide training at universities, the business community and the general public about the benefits of stock trading and the difference between doing simple business,” SEC Secretary General Minh Ban Kosal said.
The exchange is also wrestling with which currency to use—dollar or riel. And it remains unclear how popular the exchange will be in the private sector.
No private companies have yet to sign up for listing on the exchange, though some interest has been expressed in the past from businesses in banking, agriculture and the garment sector.
9 comments:
My money will be safe under my mattress. Under any circumstances that I would invest any of my money with those crooks. I just don't trust the business practice in this land of corruption.
I really think that Cambodia is not ready for the opening of its Stock market.
Deputy Prime Minister Keat Chhonn should consider all technical difficulties of the functioning of this institution and the lack of appropriate human resources rather than listen to the Koreans who want at all costs this SX to make profit on operations without any guarantee of sustainability.
Potential private listed companies: Built practically all on corruption, bribe and cronyism basis, no Cambodian private group of companies can apply for listing: bad corporate governance or simply absence of any form of corporate governance, no independent director or simply no internal control in place…and in some extreme cases, management cannot provide any comprehensive financial statements.
External auditors: Although the International Firms are present in Cambodia, there is only very few Cambodian nationals who are graduate CPA from developed countries and obviously they cannot pretend to cope with the Stock market requirements. The international Firms currently present in Cambodia, employ local managers and senior auditors freshly graduate ACCA, a London-based CPA training institute; they are more than awkward to say OK for the work. The Kampuchea Institute of CPAs and Auditors is a weak institute and has no means, for the time being, to give assurance to the public the up to standard quality of work of its members. The National Accounting Council (NAC) government agency, is responsible for setting up the Cambodian standards on accounting and auditing in line with the international standards. It appears that no one among the NAC’s staff knows what accounting and auditing are all about!!?? Poor Cambodia.
Stock Exchange itself: With the help of the Koreans, the Ministry of Economy and Finance handpicked some young graduate to be trained for the job under the supervision of the Korean team. No body cannot be silly enough to put money in this kind of SX with management without any background of professionalism.
The proposed three guinea pigs state owned enterprises: without further comment, I am sure that if they are audited now by external independent auditors the result of which cannot be a “ true and fair view of the financial statements”.
During this hard time of crisis, please do not rush on the creation of Stock market. The RGC has other things to tackle to push the development of the country.
Khmer farmer who loves his Cambodia
This dictator Hun Regime don't understand about this!!!!
Hun Xen understand only destroy all the own khmer people!!!
Money laundering of corrupted assetts have been clear,entailked with the poor corruption laws where control is to safeguard in Hun Sen hand,now the country is ready for the next phase.
You can run but you can't hide Mr 4 regimes minister!
You are guilty all the way!
who to argue that cambodia shouldn't use the national currency the riel for stock exchange trade and so forth. if for the sake of easing the transition to the riel, perhaps they should continue to use the US dollar in the beginning and slowly introduce or reintegrate the riel into the stock market exchange in cambodia. what is the issue with using the riel? don't tell me that amount is too big. bull, look at the japan yen, and other currency in the world, their denomination to the US dollar is bigger than the riel, so how they still manage to use their own currency? why not cambodia uses the riel? it's about time!
The problem with the Riel is that virtually no countries in the world will convert it for their currency because they know that Cambodian people still use the Dollar for 90% of spending.
Gradually the Riel will become more strong but I think it will be long term process of 10 or 20 years.
There shouldn't be a Stock Exchange in a country ruled by a dictator such as Cambodia. Even in the US were rules of law are very strong, there are still some crooks who pull a quick ones using some elaborate scheme to cheat investors. How about cambodia? Only the poor and powerless respect the law while the riches and powerful don't even care about it. Do they have accounting standards for all corporations to follow? How can you trust those companies balance sheets? Like someone stated in a previous post "your money is much safer under your mattress".
well, do demand reforms; that's how you make a difference, ok! i'm sure before they put this stock exchange into motion in cambodia. they will find a way to put all the necessary requirements into place as south korea is helping with this process, etc... hey, if you don't help, don't bitch or whine about it; let the experts help to put the good system into place. well, if so lack of idea, why not study from the american stock exchange, the hong kong stock exchange, the japan stock exchange, etc, etc... that already in existence. cambodia can use any of their models to establish the same way in cambodia, can we? why and why not? learn from te world, hello! don't deny or deprieve cambodia the right to the freedom of market place, ok! of course, everything has gotten to start somewhere, somehow, and in the beginning it's may be hard work, however, it's worth it in the long run, really! can't leave my country cambodia behind forever, you know! and then complain about it later for the lack of or whatever! well, help to get it started is more like it! maybe you can appreciate the effort later when cambodia becomes an expert at it. but we have to learn to do it somehow, you know! if you don't want to help, that's another story, but don't doubt it already when it's just starting! nobody is perfect. we all learn from everyone else, believe it or not. isn't that's why we have schools, to learn? and gov't, to govern? all boils down to common sense, too, you know! that's all. god bless my country cambodia.
in cambodia or the world for that matter, there is a doer and there a complainer. cambodia needs the former more than the latter. think about it. i want my country to develop like a modern country while preserving some of our past heritage as well. cambodia needs the world's best experts to help our country re-established and renaise. don't be so evil and selfish. there are more to benefit from cambodia, and it will take our country further into the brighter future as well. learn from the whole world, ok! don't stand in the way of the doers. let them work it out!
Post a Comment