Cambodian Economy Reviews

Concerns over the management of oil and gas revenues by public and opposition parties, so far, there are 23 companies having been awarded rights to explore for oil and gas in Cambodia’s offshore but not all of them are operating.

By the way, the public expressed worried about the Cambodia’s management of its natural resources revenues that has come under increased scrutiny lately, with environmental and development groups warning its lacks the proper mechanisms to utilize an expected upsurge in revenue.

Son Chhay, Sam Rainsy Party Lawmaker, sent a letter dated on May 7, to Deputy Prime Minister Sok An requesting revealing information about which companies have been awarded the rights to prospect for oil and gas and about the management of revenues from those companies. He also requested revealing information about a US$28 million payment by French Oil Giant Total.

So far, French Oil Giant Total paid US$28 million to Cambodian government by stating that US$20 million was paid as a signing bonus, US$6 million put into a social-development fund and US$2 million was for the administration process.

All oil and gas revenues from payment by companies were paid into the account of the National Bank of Cambodia, which is administered by the Ministry of Economy and Finance, and the Cambodian National Petroleum Authority (CNPA). No any payments will be directed to an individual, such as government official. Read the rest of this entry »

The figures from the General Insurance Association of Cambodia – GIAC – revealed that the premium revenues from Cambodia’s insurance sector was up by 18 percent to USD8.2 million during the first five months of 2010, but it was down 25 percent compared to the same period last year.

Chhay Rattanak, GIAC Chairman, was quoted by the Post as saying that the premiums from firs insurance contributed 26 percent, motor and miscellaneous insurance 25 percent each, and medical and health insurance, 16 percent to revenues.

The sum for claims in the first five months of 2010 was USD2.34 million, down 25 percent in comparison with the same period last year.

In General, the trend for buying premium insurance has been increasing. The upward trend is back on track, especially engineering and medical insurance, said Rattanak. He forecast that the industry would grow by between 10 to 15 percent this year.

At the present, there are six insurances companies operating in Cambodia, including Forte, CAMINCO, Asia, Campubank Lonpac, Infinity, and Cambodia-Vietnam Insurance. The insurance industry made total premium revenue of USD20.07 million last year.

A leading Commercial bank – Canadia Bank – signed agreement with the National Social Security Fund for Civil Servants (NSSFCS) yesterday in Phnom Penh in order to manage a pension and social security fund to Cambodian civil servants.

Initially, offering fund is for civil servants in Phnom Penh and it will be available through the banks a standalone bank account with its own ATM card. Having the account accessible through the bank would allow the correct funds to get to the end-users in a timely manner.

Chou Ratanak, the director for the Fund, was quoted by the Post as saying that the new NSSFCS fund aims to manage and insure a social security fund for when a civil servants retires or becomes handicapped, pregnant or is involved in an accident at work resulting in disability or death.

“Moreover, they can save their money through the fund, which will also have an interest rate with Canadia Bank,” Chou Ratanak said.

MobilityOne, which is Malaysian-based e-commerce Company, is looking online business in Cambodia by linking between banks and telecommunications. It is hopeful to launch an online mobile-banking, top-up and bill-payment system, accessible on the internet, mobile phones and ATMs within 2 to 3 months.

Prakash Rao, Cambodia business development manager, was quoted by the Post as saying that five of the country’s nine telecommunications providers- Qb, Hello, Metfone, Smart Mobile and Starcell- having signed up, and two more are close to signing. He added that the company is in talks and conducting tests with a few of the country’s 28 banks.

MobilityOne company is the holding company of an established group of companies based in Malaysia, namely MobilityOne Sdn Bhd (MobilityOne Malaysia), Netoss Sdn Bhd (Netoss) and PT MobilityOne Indonesia (collectively known as “Group”) in the business of providing e-commerce infrastructure payment solutions and platforms through their proprietary MoCS and ABOSSE technology solutions.

The Group has developed an end-to-end e-commerce solution which connects various service providers across several industries such as banking, telecommunication and transportation through multiple distribution devices such as EDC terminals, SMS, ATMs, and Internet banking. Read the rest of this entry »