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, 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.

[M'sia] CIMB gets in-principle approval from Cambodia

Tuesday May 11, 2010
The Star Online (Malaysia)

PHNOM PENH: CIMB Group has obtained approval-in-principle to offer banking services in Cambodia by its central bank, the National Bank of Cambodia.

It said the approval allowed CIMB Bank to establish and operate a 100%-owned subsidiary to offer banking products and services to the nation of 14 million people.

"The approval also requires the group to set up operations within six months. The group plans to establish its headquarters in Phnom Penh as soon as possible," the company said in a statement yesterday.

CIMB group chief executive Datuk Seri Nazir Razak said he was pleased to be granted the approval-in-principle and excited about the long-term prospects for the Cambodian economy. "The move further cements our position as a leading Asean franchise. We are now in eight out of 10 Asean countries," he said in the statement.

Meanwhile Bernama reported that Cambodian Prime Minister Hun Sen welcomed Malaysian investors to venture into areas which have yet to be fully capitalised there.

He said the areas included agriculture, agro-industry, infrastructure, labour-intensive and export-oriented industries, oil and gas, mining and tourism. "Cambodia has opened its economy to all investors and treats both local and foreign investors equally," he said during a Cambodia-Malaysia Business Forum at a hotel in Phnom Penh.

The country, Hun Sen said, has opened its economy in all sectors, including banking, insurance and telecommunications in which 100 per cent foreign-owned equity was allowed in such sectors. "This openness has provided several Malaysian companies to pioneer investments in banking and telecommunication sectors ahead of investors from other countries," he said.

Tycoon Tan Sri Dr Chen Lip Keong who set up Naga World Hotel, Axiata in telecommunications, Cambodia Utilities in power generation and Cambrew for Angkor Beer were some of the Malaysian investors' success stories in investing in this country, he added.

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.

Vast potential for M’sian investors in Cambodia

Malaysian Prime Minister Najib Razak (L), accompanied by Cambodian Prime Minister Hun Sen, stand during their national anthems at a welcome ceremony at the Council of Ministers in Phnom Penh May 10, 2010. Najib is in Cambodia for a three-day official visit. REUTERS/Chor Sokunthea

10th May, 2010
New Sabah Time (Malaysia)

PHNOM PENH: Prime Minister Datuk Seri Najib Tun Razak is expected to witness the signing of six business agreements worth US$1 billion during his three-day official visit to Cambodia beginning Sunday.

The five business agreements will be between the private sectors of both countries while another agreement will be signed between a Malaysian company and a Cambodian government agency.

Cambodian Prime Minister Hun Sen will join the visiting premier on Monday to witness the inking of all agreements covering education, ICT security, halal industry, agriculture, training and retail sectors.

Foreign Minister Datuk Seri Anifah Aman told Malaysian journalists here that Najib’s first official visit to this country, after assuming office April last year, was very significant in further cementing bilateral ties between both countries.

Malaysian Ambassador to Cambodia Datuk Pengiran Mohd Hussein Pengiran Mohd Tahir Nasruddin disclosed that total trade volume between the two countries amounted to US$150 million last year.

Ninety per cent of the trade involved Malaysian exports of textile, palm oil, food and beverage while the remaining 10 per cent constituted Malaysian imports of rubber, textile and rice, he said.

Mohd Hussein said there were vast opportunities for Malaysians to explore Cambodia’s services sector such as education, healthcare, construction, halal industry, tourism and, oil and gas.

Malaysia, with an investment of US$1.8 billion, is currently the fourth largest investor in Cambodia after China, Korea and Vietnam.

The ambassador said Malaysian investment in Cambodia included the manufacture of sports apparels, hotels, education, banking and fast food chains.

“Trade and investment between both countries are expected to be intensified as the region moves towards becoming an Asean Economic Community by 2015 which allows the free movement of goods, capital and people,” he added.

Mohd Hussein called on Malaysian businessmen to consider Cambodia seriously as it was also located in the Mekong basin comprising Myanmar, Laos and Vietnam with a population of 100 million people.

A total of 117 Malaysian businessmen will join the Malaysian delegation during the official visit.

On Monday, the prime minister is expected to attend the wreath laying ceremony at the Independence Monument, call on Hun Sen and later hold bilateral talks at the Council of Ministers, here.

Najib will then hold a dialogue with Malaysian investors and businessmen in Cambodia before he is joined by Hun Sen at the Malaysia-Cambodia Business Forum and Luncheon.

Both leaders will then witness the signing of the six business agreements.

Najib is also scheduled to visit Hello Axiata Operations Centre here, a Malaysian- Cambodian telecommunication joint venture, and later visit the construction site of the new complex which will house the Embassy of Malaysia.

Meanwhile, Rosmah will have a separate function on Monday by visiting the Kantha Bopha IV Hospital and the Bun Rany Hun Sen High School.

The prime minister and his wife will conclude their second-day visit by attending the official dinner hosted by Hun Sen and wife Bun Rany.

On the final day, Najib will have an audience with King Norodom Sihamoni at the Royal Palace.

The visiting premier will also call on the President of the National Assembly Heng Samrin and President of the Senate Chea Sim.

Malaysian prime minister resigns

Mr Abdullah has said his party faces great challenges
Najib Razak has said he wants to do more for minorities

Thursday, 2 April 2009
BBC News

Malaysia's King has accepted the resignation of Prime Minister Abdullah Badawi, paving the way for his deputy to take over.

Mr Abdullah, whose Umno party suffered in polls last year, announced earlier that he planned to quit on Thursday, transferring power to Najib Razak.

The party, in power since independence in 1957, faces internal divisions as well as a strong opposition challenge.

Controversy has dogged Mr Najib, who earlier took over as party leader.

Correspondents say Abdullah Badawi will be remembered for allowing more public freedom than his predecessor, Mahathir Mohamad.

But he was seen as failing to fulfil his promises to eradicate corruption, reform the judiciary and strengthen the police and civil service.

Warning to party

Last week, Mr Abdullah gave a strongly worded warning to the party congress.

He said Unmo (the United Malays National Organisation) would perish unless it stopped suppressing dissent, jailing opponents and discriminating against Malaysia's minority Chinese and Indian communities.

Mr Najib told the BBC last year he would do more to address their grievances.

Anger has been growing over laws that favour the Malay majority in business and education.

In the general election of last March, the ruling coalition lost its two-thirds majority in parliament.

However, it did get 139 MPs in the 222-seat body, giving it a simple majority.

Mr Najib is expected to take over as prime minister on Friday.

He has described allegations concerning the murder of a Mongolian woman as "malicious baseless lies".

Two policemen who used to be in his protection team are on trial for the killing of the 28-year-old while one of Mr Najib's senior aides admitted having an affair with the woman.