Cambodia insists ASEAN observers to temple area after U.N. Court’s order

     PHNOM PENH, July 19 (Xinhua) -- Cambodian Foreign Minister Hor Nanhong had written an official letter to Indonesian Foreign Minister Marty Natalegawa, current ASEAN chair, to insist Indonesia to send its observers to the disputed border area next to the 11th century Preah Vihear temple as soon as possible to comply with the order of the International Court of Justice, Koy Kuong, the spokesman for Ministry of Foreign Affairs, said Wednesday.

   “In the letter, Hor Namhong informs Marty about the World Court’s decision concerning to the case of the disputed border area between Cambodia and Thailand,” he said. “The minister also insists Indonesia to dispatch its observers to the newly defined demilitarized zone around the temple of Preah Vihear as soon as possible in order to honor the Court’s decision.”

   The letter was made after the U.N. Court on Monday afternoon ordered Cambodia and Thailand to immediately withdraw their military personnel currently present in the provisional demilitarized zone around the area of Preah Vihear temple.

   It added that Cambodia and Thailand should continue their co-operation within ASEAN and, in particular, allow the observers appointed by that organization to have access to the provisional demilitarized zone.

   Cambodia and Thailand agreed to accept Indonesian observers to monitor a ceasefire on their respective border side on Feb 22 at the ASEAN Foreign Ministers' Meeting in Jakarta, but the deployment has always delayed because Thailand demanded that Cambodian soldiers and locals be withdrawn from the disputed area near the temple first.

   The World Court awarded Preah Vihear temple to Cambodia in 1962 and the temple was enlisted as a World Heritage Site on July 7, 2008.

   The border conflict between Cambodia and Thailand occurred just a week after the enlistment as Thailand claims the ownership of 4.6 square kilometers (1.8 square miles) of scrub next to the temple.

   Since then, both sides have built up military forces along the border and periodic clashes have happened, resulting in the deaths of troops and civilians on both sides. 

Cambodia drafts 2.35 bln USD budget for 2012’s expenditure: finance minister

   PHNOM PENH, July 18 (Xinhua) -- Cambodia on Monday planned a drafted budget of around 2.35 billion U.S. dollars for the country’s expenditure in 2012 -- budget for national defense will be among the top priority sectors, said the minister of finance Keat Chhon.

   Speaking during a meeting with the members of parliament on budget draft for 2012’s expenditure, Keat Chhon said the total expenditure for 2012 will be equal to 19.42 percent, or [2.35 billion U.S. dollars] of the GDP growth this year.

   The GDP growth this year is forecast at 6.1 percent in equivalent to 12.14 billion U.S. dollars, he said.

   “It’s just the drafted budget, the final one will be available in September,” he said. “The expenditure is to ensure the stability of macroeconomics and the GDP growth.”

   Top priority sectors are national defense and security, health, education, agriculture, irrigation, and infrastructure, he said.

   According to the budget law for 2011, the overall budget for 2011 was 2.4 billion US dollars. 

China provides 45 scholarships to Cambodians

   PHNOM PENH, July 20 (Xinhua) -- The Embassy of China here on Wednesday provided scholarships to 45 Cambodian students to pursue Bachelor’s degrees, Master’s degrees and Doctorate’s degrees in China.

   The scholarships include the majors of economics, commerce, information and communication technologies, engineering, agriculture, education, culture and arts, He Leping, Charge d'affairs of the Chinese Embassy to Cambodia, said during awarding the scholarships to Cambodian students at the Embassy residence.

   “The government of China has always paid high attention to the development of human resources for Cambodia and the scholarships China awarded to Cambodian students are all good subjects for social and economic development,” he said. “We hope that through the scholarships, the friendship relations between Chinese people and Cambodian people, the government of China and the government of Cambodia, will be closer.”

   He said so far, China has provided 450 scholarships to Cambodian students.    

   Meanwhile, Mak Vann, Secretary of State for Ministry of Education, Youth and Sports, expressed sincere appreciation and thanks to the government of China for the scholarships.

   “The scholarships reflect China’s attention on the development of Cambodia’s education, which are the key resources for the development of the country,” he said.

   He said, in exchange, since 2004, 19 Chinese students have been provided scholarships to study at the Royal University of Phnom Penh. 

Foreign travelers to Cambodia by air rise 13 pct in last 6 months

     PHNOM PENH, July 20 (Xinhua) -- Cambodia’s two international airports have received 889,827 foreign travelers in the first six months of this year, increased by 13 percent from 789,265 in the same period a year ago, according to the statistics from the Cambodia Airports on Wednesday.

   The figure showed that, from January to June this year, the travelers entered Cambodia through the Phnom Penh International Airport increased by 10 percent to 445,225 from 404,818 in the same period last year; and the travelers via the Siem Reap-Angkor International Airport rose by 15.6 percent to 444,602 from 384,447.

   Kong Sophearak, director of Tourism Ministry’s Statistics Department, attributed the rise to more foreign countries have begun their direct flights to Cambodia and some existing airlines have increased flights, or expanded flight destinations.

   “It’s also thanks to our open-sky policy and the country’s richness in cultural, historical, eco-tourism destinations,” he said.

   The consolidated data on foreign tourists to Cambodia by air, land and water in the first half of this year is not available yet, he said, but it’s obvious that Vietnam still stands number one, South Korea and China at number two and three respectively.

   Tourism is one of the four major pillars supporting Cambodia’s economy. The Ministry of Tourism predicts that Cambodia could receive 2.73 million international visitors this year with estimated revenue of 1.9 billion U.S. dollars. 

Work on Phnom Penh’s 4th satellite city begins

PHNOM PENH, July 11 (Xinhua) -- Cambodia’s Shukaku Inc firm on Monday broke ground for the construction of Boeung  Kak Lake development project -- the fourth satellite city in Phnom Penh.
  Speaking during the ground breaking ceremony, the Governor of Phnom Penh Capital Kep Chuk Tema said that it is a new  achievement for Phnom Penh, the development will turn the area from the city’s largest slum to a new town.
  “The would-be new city will help boost the country’s economic development and will uplift the face of Phnom Penh, the  capital of Cambodia, as the Pearl City of Asia,” he said, adding that the project has got the support of the government.  
  The development of the former slum has been begun after the firm has resettled more than 4,000 families of the squatters and  finished its first phase work of filling the 133-hectare lake with river sand since August 2008, said Lao Van, the son of the senator  Lao Meng Khin, who is the president of Shukaku Inc.
  “The new city would consist of upscale development of trade centers, shopping malls, conference hall, entertainment centers,  night clubs, hotels, universities, hospitals, residential units, recreational facilities, and resorts,” he said.
  The Beoung Kak new town is situated in the heart of Phnom Penh capital; the government granted a 99 year lease to the  Shukaku Inc to develop it in February 2007 with the announced initial investment value of 79 million U.S. dollars.
  It is a joint venture between Shukaku Inc and Inner Mongolia Erdos Hung Jun Investment Company Ltd. (“Erdos”) from  China.  As its partner, Hung Jun Investment Company Ltd participates in the planning, fund raising and construction of the  project after the lakeside eviction been completed.
  Currently, other three satellite cities have been constructing in Phnom Penh including Camko City, Grand Phnom Penh  International City and Koh Pich or Diamond Island City.
  The development of new towns is the government’s strategy to meet the growing economy and population.
  Phnom Penh is currently residing more than 2 million people. It is estimated that the growth is about 20 percent year on year,  according to the city hall. 

Cambodia launches long-delayed bourse

   PHNOM PENH, July 11 (Xinhua) -- Cambodia on Monday inaugurated the long-awaited stock market in optimistic hopes to mobilize long-term financial resources to boost the country’s economic development.

   Speaking during launching Cambodia Securities Exchange (CSX) at its head-office located in the kingdom's tallest building, Canadia Tower, the minister of finance Keat Chhon, chairman of the Securities and Exchange Commission of Cambodia (SECC), which is the regulator for the CSX, said that the launching was a milestone for Cambodia financial sector and was also a new national pride of Cambodia.

   “Finally, the CSX is created,” he said. “The inauguration is the evidence of the readiness of CSX to start the first securities trading by the end of this year.”

   The CSX is a securities market operator, a securities clearing and settlement facility operator, and a depository operator.

   “The stock market would be a long term source of capital for companies’ development and be a boost to the country’s economy,” he said.

       Keat Chhon added that three state-owned enterprises--Sihanoukville Autonomous Port, Telecom Cambodia and Phnom Penh Water Supply Authority—have been preparing IPO (Initial Public Offering) to list and trade on the CSX from the end of this year.

   Kim Bongsoo, chairman and CEO of the Korean Exchange, said the CSX will be very important to attract capital from local and foreign investors to develop businesses.

   “With good preparedness by the government of Cambodia and Cambodian officials under the support from the Korean Exchange, I believe that the CSX will operate smoothly and successfully,” he said. “However, to run it in a full-swing operation, it needs a long term period—the Korean Exchange is committed to helping the CSX to be as high standard as other stock markets in the world.” 

   However, the director general of Cambodia Chamber of Commerce Nguon Meng Tech said the government should not rush to open the stock market and added that to launch an internationally recognized stock market in Cambodia; it should take “another five years” to prepare.

   “In my point of view, it’s still not the right time for this country to open the market because of low public confidence and limited human resources,” he told Xinhua.

   He explained that most businesses in Cambodia are in family business forms and they have no knowledge at all with the stock market, so it should take more time to build confidence among them first.

   Moreover, the knowledge and expertise abilities of the SECC officials are limited, so it’s easy to expose to risks, he added.  

   The plan to open CSX was initiated by Korean Exchange in 2007. The CSX is a joint venture between the Korean Exchange holding a 45 percent stake and the government of Cambodia owing the remaining 55 percent.

   The schedule to launch the market had been postponed twice--in 2009 and 2010.

   CURRENCY USE

   The CSX uses Cambodian riel. The issuing securities shall be inscribed as riel currency and the quotation on securities in the trading system of CSX shall be conducted in riel currency.

   The clearing and settlement facility in the primary market and the secondary market shall be used in rile currency, but during the first three years since the date of the establishment of the CSX, the clearing and settlement facility in U.S dollar currency will be allowed in order to encourage investors to enter the market.

   TAX INCENTIVES FOR COMPANY LISTING ON THE STOCK EXCHANGE

   For firms listing on the CSX, the Tax on Net Profit would drop from 20 percent to 18 percent, while the withholding taxes on interest and dividends would both drop from 14 percent to 7 percent, for the first three years, according to the regulation issued by the Ministry of Economy and Finance dated on 22 April 2011.

   CRETERIA FOR COMPANIES WANTING TO LIST IN THE CSX

   A company wants to list in the stock market and issue the Initial Public Offering (IPO), it’s required to have the minimum capital of 10 billion riels, or 2.4 million U.S. dollars and the last annual minimum net profit of 1.5 billion riels, or 361,445 U.S. dollars as well as the minimum net profits for the last three years worth 3 billion riels, or 722,891 U.S. dollars, according to the regulation of the SECC.

   Also, the company must issue at least 300,000 units of bond, of which a unit worth 4,000 riels, or 1 U.S. dollar par value.

   The company shall be public limited company and has economic stability, financial soundness, good corporate governance, and the financial statement must be audited by an independent auditor for the last three years.