Building Projects Worth US$428 Million Identified In Laos, Cambodia [by Malaysia]

KUALA LUMPUR, Dec 9 (Bernama) -- A recent business delegation of local construction companies to Cambodia and Laos identified US$428 million of building and infrastructure projects in both the countries, a statement from Malaysia External Trade Development Corporation (MATRADE) said on Thursday.

It said the Specialised Marketing Mission, which was in Phnom Penh and Vientiane from November 28 to December 2, focused on construction and related services.

The mission was led by MATRADE, in collaboration with the Construction Industry Development Board (CIDB) and the Master Builders Association of Malaysia.

"Infrastructure, hydropower and construction projects were identified to be among the most promising business opportunities in both countries," said MATRADE's Chief Executive Officer Datuk Noharuddin Nordin.

He said both the Cambodian and Laotian Government were keen to work with foreign and local companies to develop their countries' infrastructure needs through Public Private Partnership programmes.

Citing the example of the US$2 billion Greater Mekong Subregion projects in Cambodia and the US$5.2 billion hydro power sector plan in Laos over the next five years, he said both countries were projecting positive economic growth and vibrant outlook for their development plans.

Investor Visit May Mark Return of Malaysia

Ros Sothea, VOA Khmer
Phnom Penh Wednesday, 19 May 2010

“Now they are coming back to us, and we will see their potential at the end of the year.”

Cambodia and Malaysia’s recent multimillion dollar agreement on a range of ventures has likely opened the door for even more interest from a country that used to be the top investor here, officials and analysts say.

Earlier this month, the two countries agreed to half a dozen deals, including a $700 million agreement on security technology with Malaysia’s Nexbis. In addition, both sides agreed on the opening of about 20 bistros, halal food production, two universities, and a chicken farm.

Government officials say they expect to see signs of at least some of the investment by the end of 2010, and they hope this is just the beginning.

Malaysia is a large investor in Vietnam and Indonesia, said Chan Sophal, president of the Cambodian Economic Association. And now Cambodia wants to tempt some of those businesses.

This month’s delegation was led by Malaysian Prime Minister Najib Razak, who brought 100 investors from 66 companies with him. Of those, 60 are still looking for investment partnerships in agro-industry, oil, gas, clean energy, real estate, tourism and telecommunication.

Felcra-Berhad, for example, came looking for investment in a rubber plantation in Mondolkiri province, worth $2 million.

“In the beginning, we may start with 5,000 hectares first, and we will expand to 10,000 or 30,000 hectares,” Haji Juzilman Basir, acting vice president of the Malaysian state-owned company, told VOA Khmer. “We are now still waiting for the proposal from the authorities here, and then we’ll go back to our country to discuss investment, which could start at the end of the year or next year.”

Cambodia remains less developed than its neighbors, but it has a lot of investment opportunities, said Mi Ki Choong, a strategist for the Centurise investment group. Real estate, media, entertainment and technology are all attractive, she said.

Some in the Malaysian delegation did not find investment partners.

“We are looking for Cambodians who are planting jatropha, and then we can make the oil, because there is a potential market to grow, to produce and to use it, but we haven’t found them yet,” said Abdul Manaf Radzi, senior vice president of Malaysia Biotech Corp. “So as long as we can find those people, we can work together.”

The investment delegation marked a renewed interest in Cambodia by Malaysians, who, prior to 2007, made up the largest group of investors here, especially in garments and telecommunications.

Razak said during his visit Malaysian investment in Cambodia over the last 14 years had come to $2.19 billion.

However, in 2009, Malaysian fixed investment in Cambodia was little more than $7 million—fourth of all Asean countries and 11th of 21 overall. China, South Korea and Vietnam have all surpassed Malaysia in investment here.

“Now they are coming back to us, and we will see their potential at the end of the year,” said Ngoun Meng Tech, secretary-general for the Cambodian Chamber of Commerce.

Duy Thoy, deputy secretary-general at the Council for the Development of Cambodia, said Malaysia’s fast-growing economy will lead investors to Cambodia in the future.

Cambodia Has Come a Long Way! [-To uncover Cambodia's festering societal and economic cancer, one needs to dig deeper!]

PICTURE PERFECT: An aerial view of what Phnom Penh looks like now, taken from the writer's hotel window
ILLUSTRIOUS COMPANY: (From left) The writer with Princess Norodom Arunrasmy and Datuk Kamal Yan, Special Adviser to Prime Minister Datuk Seri Najib Razak

Monday, May 17th, 2010
Rusdi Mustapha
The Malay Mail

IN 1991, I flew on an army plane to Cambodia to see our soldiers serving under the auspices of the United Nations in Battambang.

This country was just one big dust bowl and rubbish bin as it had to endure too many wars and invasions, and millions of its population were decimated by that evil force under the guise of the dreaded Khmer Rouge.

Today, the Kingdom of Cambodia is bouncing back with a vengeance, economically, politically and socially.

Last week, I had another chance to be part of an official visit there.

Our delegation was headed by Prime Minister Datuk Seri Najib Razak.

It was a moment of pride to see how Malaysia was being received with much respect by the Kingdom of Cambodian and its government.

Reason? Well, when Cambodia was down and out, Malaysia was there to lend assistance. You name it and we were there to help them without any condition. And sincere assistance to a country in need has borne its fruitful return.

Today, Malaysia is one of Cambodia's biggest foreign investors, besides Japan, China and South Korea.

As said, we are investing everywhere in Cambodia with the consent of their government.

Last week’s official visit saw Malaysian investors committing about US$1 billion (RM3.3 billion, according to AFP reports).

It was reported the private sector agreements covered “education, information communication technology security, produce deemed halal, coffee growing, a poultry farm, and in the plantation sector”. During the three-day visit, Najib met Cambodian Prime Minister Hun Sen, and he pledged to encourage more Malaysians to invest in the kingdom.

Barely two years ago when I visited Phnom Penh, a ride from the Pochentong Airport (since renamed Phnom Penh Airport) on the way to town will expose us to a dusty road filled with red laterite dust, rubbish strewn everywhere and the proverbial chaotic traffic mainly filled with small motorcycles. But on this trip, it was a surprise!

It was like coming to a new township where everything is perfect. Can this be just for the sake of an official visit of a foreign leader that the road from the airport leading to the official hotel is filled with decorations? No, it wasn’t! I took the trouble to visit other parts of Phnom Penh and true enough the whole city has been transformed!

Indeed, Phnom Penh has decided to take a giant leap and the city is now, to my reckoning, one of the best and most comfortable cities to visit. Good food, friendly people, great scenery.

If you decide to, you can sit on the balcony of the Foreign Correspondents Club, sipping the great coffee and eating its famous cheeseburger and watching the river Mekong flow ever solidly and majestically.

According to Princess Norodom Arunrasmy, the Cambodians have a very strong resolve and they want the country to forge ahead come what may.

“We are a very positive people, the hardships we had to endure in the past, we leave them behind, but not to forget them as a lesson for us.

"Malaysia has always been a real friend to Cambodia and I see that relationship to be much stronger as we move ahead as a country.

"Investment from Malaysia has always been given a priority,” she told a group of us at her residence in the capital.

The princess is the daughter of Prince Norodom Sihanouk and she is also the Cambodian Ambassador to Malaysia.

During the lunch she prepared for us, we had laksa, rending and otak-otak and many more almost familiar Cambodian foods that are so like Malaysian cuisine.

AirAsia and Malaysia Airlines both fly to Cambodia and the flight from KL is only about one and a half hours.

Malaysians do not need a visa to go there. So, what are you waiting for?

Cambodia, Malaysia pledge to further trade, investment relations

May 11, 2010
Xinhua

Cambodia and Malaysia will further promote and strengthen their trade and investment relations with the visiting of Malaysian Prime Minister Najib Razak and the signing of six deals worth more than 1 billion U.S. dollars.

During the three-day official visit to Cambodia, wrapped up Tuesday, Najib Razak has met with Cambodian leaders including Prime Minister Hun Sen and was granted an audience by King Norodom Sihamoni.

Najib and Hun Sen had exchanged a wide range of discussions over the bilateral cooperation between the nations and the assistance as well as investment in Cambodia.

Both of them highly valued their relations. Hun Sen thanked Malaysia for its continued support in various fields, and saying that the visit of Najib Razak and his business delegation "will add a new dimension to Cambodia's socii-economic development effort, through the expansion and strengthening of both countries' cooperation in the field of politics, security, economy, social affairs, and culture."

The Malaysian prime minister has pledged to encourage more investors to Cambodia. "Malaysia has been the biggest investor in Cambodia for 14 consecutive years with investments totaling 2.19 billion U.S. dollars. Cumulative Malaysian investments in Cambodia during the past two years total 118 million U.S. dollars," Najib Razak said.

It was the first visit to Cambodia made by Najib Razak since he came to office last year, and the outstanding achievement during the visit was the deals among the private sectors of the two countries that had agreed in principle to engage in business agreement that worth in total of 1 billion U.S. dollars.

[M'sian] PM wants more trade with Cambodia

Red carpet treatment: Najib inspecting a guard-of-honour in Phnom Penh yesterday. Accompanying him is Hun Sen. - Bernama

Tuesday May 11, 2010
By EDDIE CHUA
The Star (Malaysia)

PHNOM PENH: Malaysia hopes to increase the number of goods involved in its trade with Cambodia, said Datuk Seri Najib Tun Razak.

The Prime Minister said Malaysia trade base with Cambodia was very narrow and confined to a few products.

“Malaysia’s main export to Cambodia are chemicals, machinery, appliances and electrical products while imports consist of textiles, clothing, raw rubber and logs from Cambodia,” he said at the Malaysia-Cambodia business forum luncheon here yesterday.

Najib said there was plenty of opportunities for both countries to expand the scope of products and services.

He said businessmen from both nations must continue to find ways and work together to enhance the bilateral trade and form strategic partnerships that would take advantage of the opportunities arising from the greater regional economic integration.

He said it was important for both nations to continue to work closely to improve trade relations through bilateral cooperation and active participation in Asean integration initiatives.

“The governments of both countries have taken steps to establish a framework for sustained cooperation in all economic and political areas and now is the time to mobilise our resources collectively for the economic development of Asean as a whole,” he added.

Najib said Cambodia had the potential to play a prominent role in Asia’s expansion.

Earlier, Najib held bilateral talks with his counterpart Hun Sen at the Council of Ministers.

He said Malaysia and Cambodia agreed to expand its two-way trade commitments and one of the topic discussed was Cambodia’s 3.5 million tonnes of rice surplus.

The country has invited Malaysian companies to set up mills to process the padi for export.

Najib said Cambodia was satisfied with the training provided under the Malaysia Technical Corporation and the number of scholarships provided by Petronas and other companies to Cambodians.

He said the Cambodian government has given an approval-in-principle for CIMB to open in the country after its application was submitted to the National Bank of Cambodia.

He said that with the approval, Malaysia would have five financial institutions operating in the country.

In the morning, Najib also attended the wreath-laying ceremony at the Independence Monument.

Malaysian Businesses Ink Deals on Official Visit

Prime Minister Hun Sen welcomes Malaysian Prime Minister Najib Razak, on Monday. (Photo: AP)

Chun Sakada, VOA Khmer
Phnom Penh Monday, 10 May 2010

CIMB Group Chief Executive Datuk Sri Nazir Razak said the bank would help bring “more trade and investment flows between Cambodia and other Asean markets.”

Malaysia banking giant CIMB will open a branch in Cambodia as part of a series of agreements penned between Cambodian and Malaysian officials Monday.

The CIMB Group was green-lighted by the National Bank of Cambodia to open a bank, but Prime Minister Hun Sen gave official approval Monday, as he met with Malaysian Prime Minister Datuk Seri Najib Tun Razak, who arrived Sunday for his first visit since becoming premier in April 2009.

Ngong Meng Tech, secretary-general of the Cambodian Chamber of Commerce, said Cambodian and Malaysian companies also signed six agreements totaling $1 billion in further meetings Monday.

Those deals focused on Cambodian production of coffee and halal sugar; a poultry farm for KFC; information technology security and the establishment of two universities and a business council here, Ngong Meng Tech said.

CIMB said in a statement it will operate a 100-percent owned subsidiary with headquarters in Phnom Penh, to be established in the next six months.

CIMB Group Chief Executive Datuk Sri Nazir Razak said in a statement the bank would help bring “more trade and investment flows between Cambodia and other Asean markets.”

Hun Sen “approved, encouraged and supported CIMB Group to open its office in Cambodia,” said Ieng Sophalleth, an adviser to the prime minister.

Hun Sen also encouraged his counterpart to consider further Malaysian investment, “particularly in the rice crop,” Ieng Sophalleth said.

Cambodia and Malaysia ink 6 pacts

05.10.10
Associated Press

PHNOM PENH, Cambodia -- Malaysian businessmen accompanying Prime Minister Najib Razak on an official visit have signed six agreements worth about $1 billion with their Cambodian counterparts.

Nguon Meng Tech, director general of the Cambodian Chamber of Commerce, said the pacts signed Monday covered coffee cultivation, information technology security, production of halal food, education - including the creation of two universities, setting up a poultry farm and opening of a commercial consular office.

Najib arrived Cambodia on Sunday for his first visit since coming to office last year. Malaysia ranked fourth among foreign investors in Cambodia in 2009. Najib said Malaysia has been the biggest cumulative investor with $2.19 billion over the past 14 years.

[Malaysia] Leader to invest US$150mil in new Cambodia power plant

Monday June 29, 2009
By DAVID TAN
The Star (Malaysia)

GEORGE TOWN: Leader Universal Holdings Bhd will invest in a new power plant worth US$150mil to US$160mil in Sihanoukville, Cambodia, which is expected to commence operations in 2012.

Group managing director and chief executive officer Sean H’ng Chun Hsiang said the power-purchase agreement for the 100MW coal-fired power plant, which would replace the earlier agreement executed for the 200MW project, would be inked soon.

“We are also in talks with banks now and expect to finalise the financing for the project before the end of this year. We hope to start construction work on the plant soon,” he told StarBiz.

In February 2007, the group announced its winning bid to develop a 200MW coal-fired power plant in Sihanoukville with a local Cambodian partner on a 50:50 joint venture.

However, on Feb 1, 2009, it announced that the Cambodian government had approved to split the 200MW plant into two projects of 100MW each, allowing each original shareholder to develop its own project.

On June 11, Leader said it had formed a joint venture with Cambodian International Investment Development Group Co Ltd to develop the plant.

Leader owns 80% of the joint-venture company, which is also planning to develop another 700MW coal-fired power plant in Sihanoukville.

“This project will be progressively developed after the completion of the 100MW plant in 2012.

“The 700MW plant will be carried out in various phases, with each phase having the capacity to generate 100MW-200MW of power supply, to gradually meet the energy needs of Cambodia,” H’ng added.

Presently, the capacity of the power plants in Cambodia was around 410MW, compared with the forecast demand of 808MW by Electricite du Cambodge (the local state-owned power company), H’ng said.

“The demand is expected to increase to 1,915MW in 2015, eventually hitting 3,867MW in 2020.

“There are vast business opportunities for the power business in Cambodia. We have been building some power distribution lines there. We hope to also explore opportunities in the area of power transmission,” he added.

Leader’s first power plant, using heavy fuel oil, is located in Phnom Penh, catering to its one million population.

For the first quarter 2009, the power business contributed 8% to the group’s total revenue of RM444.7mil and 35% of its total operating profit of RM26.6mil.

On the group’s cable business, Leader’s order book as at end-March stood at about RM700mil, excluding some major recurring orders.

“Almost 40% of the group’s total revenue in the first quarter was from export orders. The group exports to over 20 countries in Asia, the Middle East, Europe and Oceania.

“We will continue to look at new opportunities in the overseas markets. The group is confident of the near-term prospects, given the implementation of the Government’s stimulus packages and also the demand arising from the implementation of the Bakun power transmission projects,” he added.

On the group’s revenue for 2009, H’ng said that although the prices of both aluminium and copper had increased recently, they were unlikely to hit the peak seen in 2008.

“Thus, we expect the group’s revenue to be correspondingly lower this year. The cost of aluminium and copper are mostly passed through to our customers.

“So although the movement of prices of aluminium and copper will impact our revenue, it will not materially impact our bottom line,” he said.

For the group’s first quarter ended March 31, revenue dropped by 31% compared with the previous corresponding quarter due to lower aluminium and copper prices.

The average London Metal Exchange price of copper was US$7,796 per tonne for the first quarter 2008 compared with US$3,428 for the first quarter of 2009. Similarly, the average price of aluminium dropped from US$2,742 per tonne in the first quarter 2008 to US$1,360 in the 2009 quarter.

Malaysia Biggest Investor In Cambodia

From Noor Shamsiah Mohamed

PHNOM PENH, May 29 (Bernama) -- Malaysia has been the biggest investor in Cambodia for 14 consecutive years with investments totalling US$2.19 billion (RM7.3 billion).

Malaysia's Ambassador to Cambodia Datuk Adnan Otman said that according to the March 2008 report of the Development Council of Cambodia, Malaysia ranked top, followed by China with investments of AS$1.761 billion.

"Among the business carried out by Malaysian companies are power generation, textile manufacturing, construction, hotels, restaurants, telecommunications, insurance, banking and petroleum," he said in his speech at a dinner hosted by the Malaysian Business Council in Cambodia at the Raffles Hotel Le Royal here Thursday.

Yang Di-Pertuan Agong Tuanku Mizan Zainal Abidin and the Raja Permaisuri Agong Tuanku Nur Zahirah, who are on a four-day official visit to Cambodia, were the guests-of-honour.

Adnan said Cambodia was becoming a popular destination for Malaysians, especially for those looking for business and investment opportunities.

"The number of Malaysians who came to Cambodia in 2007 was 84,039 people, from 36,876 in 2006.

"Cambodians who went to Malaysia in 2007 totalled 23,193 people compared with only 9,957 people in 2005," he added.

4 KFC stores Phnom Penh annually ... can you digest it all?

QSR plans 4 KFC stores in Phnom Penh annually

Tuesday April 29, 2008
By YVONNE TAN
The Star Online (Malaysia)

PHNOM PENH: QSR Brands Bhd hopes to set up four Kentucky Fried Chicken (KFC) outlets a year in Phnom Penh.

This is given the robust growth of the city's tourism industry, said chairman Tan Sri Muhammad Ali Hashim.

He said four outlets would be set up by year-end with a total investment of US$1mil.

“The immediate plan is to open three more here this year,” he said after the launch of Cambodia’s first KFC restaurant here yesterday.

Ali said the company would subsequently expand to other populous cities such as Siem Reap and Sihanoukville.

“Tourism here is growing rapidly. We hope to establish outlets to cater to the increasing number of foreign visitors,” he said.

He added that QSR obtained the franchise to operate KFC restaurants in Cambodia last year through its 46.79% associate company KFC Holdings (M) Bhd.

QSR is the operator of 489 KFC outlets in Malaysia, Singapore, Brunei and Cambodia. It is also the franchisee for Pizza Hut.

The new outlet is operated by Kampuchea Food Corp Ltd, a joint-venture company set up by QSR; Cambodian investment and development company The Royal Group of Co Ltd of Cambodia; and Hong Kong-incorporated strategic investment holding firm Rightlink Corp Ltd.

QSR has a 55% stake in the joint-venture company while The Royal Group and Rightlink each has 35% and 10% interest.

On when the new outlet would break even, Ali said: “Hopefully, in a year but this is a long-term investment.'' Currently, overseas operations contribute 30% to QRS’ sales.

“We hope it will be much higher after this,” Ali said, adding that he expected Malaysian sales to also grow at double digit this year.

Despite rising prices of raw materials, Ali is confident of the group’s financial performance, going forward. “This year will be better than last year,” he added.

On a possible price increases in its products, he said: “Only if it is absolutely necessary but we will try to maintain prices for now.”

Meanwhile, the Cambodian government hopes Malaysia will continue to grow its investments in the country.

"China is currently Cambodia's biggest investor while Malaysia ranks ninth or 10th," Cambodia's Senior Minister of Commerce Dr Cham Prasidh said.