Participants of the meeting between Cambodian and Malaysian officials and private sector representatives at the Council for the Development of Cambodia (CDC) on November 29. CDC
Malaysian financiers have expressed interest in investing in four sectors in Cambodia, highlighting the country’s significant potential in these industries. Trade between Cambodia and Malaysia in the first 10 months of 2024 amounted to over $715 million.
During a meeting on November 29, Chea Vuthy, secretary-general of the Cambodian Investment Board (CIB) at the Council for the Development of Cambodia (CDC), met with Tan Khee Meng, president of the Malaysian Chamber of Commerce in Cambodia (MBCC), and representatives from Hong Leong Manufacturing Group.
Hong Leong expressed interest in investing in motorcycle manufacturing, ceramic production, semiconductor fabrication and real estate.
Regarding the proposed motorcycle manufacturing project, Vuthy recommended conducting further studies on market size and demand in Cambodia. He also welcomed the ceramic and semiconductor production projects, suggesting that the company could consider locating its investments in a special economic zone (SEZ) or potentially establishing its own SEZ.
Vuthy highlighted the rapid development of SEZs in the country, which are attracting modern technology investment projects, particularly in tyres, electronic equipment, automotive parts, furniture and vehicle assembly.
He said these zones are also fostering the growth of industrial clusters, such as light bulb production, electrical cables, Christmas decorations, furniture and vehicle assembly.
According to the General Department of Customs and Excise (GDCE), Cambodia-Malaysia trade from January to October reached $715.15 million, marking a 35.3% increase compared to the same period in 2023. Exports to Malaysia amounted to $109.95 million, up 35.7%, while imports from Malaysia totalled $605.21 million, an increase of 35.3%.
Malaysia is the country’s 12th-largest trading partner, following China, the US, Vietnam, Thailand, Japan, Canada, Indonesia, Spain, Germany, the UK and Singapore.
Hong Vanak, an economist at the Royal Academy of Cambodia, told The Post on November 29 that political stability, infrastructure development and improvements in the investment legal system have helped attract new investment projects and expand its manufacturing sector.
He noted the presence of many Malaysian investors in Cambodia, facilitated by their shared ASEAN membership. He highlighted that, as members of the Regional Comprehensive Economic Partnership (RCEP), trade between the two nations benefits from tariff exemptions.
Vanak added that the growth in trade volume reflects increased demand and production capacity in both countries, which complement each other. He expressed optimism that the trade balance between Cambodia's exports and Malaysia's imports will narrow in the future.
He also mentioned that while the country has a trade deficit with Malaysia, it benefits significantly from remittances sent by Cambodian workers in Malaysia.
To strengthen bilateral cooperation, on February 27 Chea Serey, governor of the National Bank of Cambodia (NBC), and her Malaysian counterpart Abdul Rasheed Ghaffour signed a memorandum of understanding (MoU).
The MoU aims to promote financial innovation and payment systems to enhance cooperation and boost financial innovation and cross-border payments effectively and securely, benefiting the citizens and businesses of both countries.
The NBC confirmed that the initiative will enable Malaysian citizens to make payments by scanning QR codes in Cambodia, while Cambodian citizens can do the same in Malaysia. Transactions will be conducted using local currencies, supporting efficient and secure cross-border payments. The arrangement is also expected to facilitate business activities and strengthen the tourism sector in both countries.
