Kuala Lumpur-based 28th commercial bank – Malaysia’s Hwang DBS commercial bank- opened its first branch in Phnom Penh, Cambodia, setting up with capital of $20 million and will serve small-to-medium-size enterprises as well as individuals and foreigners in Cambodia. And it is the fourth Malaysia bank to have invested in Cambodia.

Han Peng Kwang, senior vice president of Hwang DBS bank, quoted by the Cambodia Daily as saying at a news conference at the grand opening that “The Bank has come to Cambodia at the right time, as it a young and growing country, where Hwang DBS’s business can develop. He added that “I believe we can [bank] number 28 today, but we believe with our support from DBS Malaysia and Singapore, we can provide good products and markets here.”

Alex Hwang, the CEO of HwangDBS Investment Bank, told a press briefing after the launch that the bank would target loans to individuals and small and medium-sized enterprises. The bank has US$20 million of initial capital, quoted by the Phnom Penh Post as saying.

Pung Kheav Se, president of Canadia Bank, was quoted by the Post on Thursday as saying that he does not expect the influx of foreign banks will affect local banks to a great extent, but agreed loan rates would be dragged lower.

Chea Chanto, the governor of the National Bank of Cambodia, said during the opening ceremony that “Hwang DBS will bring more cross-border relationship and technology to Cambodia,” according to the Daily.

Chhay Soeun, the executive vice president and chief financial officer of ACLEDA Bank, said foreign banks see the Kingdom as a good opportunity, reported the Post

“Economically speaking, interest rates are low in their own countries with few opportunities to invest. But in Cambodia, an emerging market, businesses and investors need capital to expand, and interest rates here are high compared to developed countries, so they can make more profit,” he said. “Also, they see political stability, and that boosts the confidence of foreign investors,” continued the Post.

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