Flash Report on the Cambodian Economy - Dec 2009

viTüasßanbNþúHbNþal nig RsavRCavedIm,IGPivDÆn_km<úCa

CDRI—Cambodia’s Leading Independent Development Policy Research Institute

r)aykarN_fµI²sþIBIesdækic©km<úCa Flash Report on the Cambodian Economy

FñÚ 2009 ¼ December 2009

saMg c½nÞhgS ¼ Saing Chan Hang

RsIu bu)öar½tñ ¼ Sry Bopharath

b:un dUrINa ¼ Pon Dorina

bkERbeday³ yU siT§IriT§ nig v:a vNÑ³

PñMeBj km<úCa Phnom Penh, Cambodia

TO SUBSCRIBE, PLEASE CONTACT: Office Address: #56, Street 315, Tuol Kork, Phnom Penh, Cambodia, Postal Address: CDRI, PO Box 622 Phnom Penh, Cambodia

Tel: (855-23) 881-384/881-701/881-916/883-603 Fax: (855-23) 880-734 E-mail: [email protected]. Web site: http://www.cdri.org.kh

ISSN 1810-6358

Cambodia Economic Flash Report –December 2009

Cambodia Development Resource Institute – Page 2

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enARtImasTI3 qñaM2009 GnumtivinieyaKKitCaRTBüskmµsrubkñúg vis½yesvakmµ Føak;cuHmkRtwm 171/32landuløarUS eFobnwg 4450/5landuløarUS kalBIRtImasdUcKña qñaMmun . GnumtivinieyaK sMrab;sNæaKar ekInBIcMnucsUnü dl; 17/2landuløarUS rIÉ GnumtivinieyaKsMrab;vis½yeTscrN_ Føak;cuH 96° mkRtwm 133landuløarUS . GnumtivinieyaKsMrab;esvakmµepSg²eTot Føak;cuHBI 969/3landuløar mkRtwm 21/1landuløar .

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enAExvicäika saMg nigm:as‘Ut eLIgéfø 1/0° nig 1/1° eFobnwgExmun

Highlights

This report describes some of the key economic indicators for

Cambodia and its main trading partners.

In the third quarter of 2009, total fixed asset investment

approvals for services sector decreased from USD4450.5 m in

the same quarter last year to USD171.32 m. Approvals for

hotels rose from nil to USD17.2 m, while tourism approvals

fell 96 percent to USD133 m. Other service approvals

decreased from USD969.3 m to USD21.1 m.

In October, total foreign visitor arrivals to Cambodia rose by

2.8 percent compared with the preceding month, reaching

152,497. Holiday visitors rose by 4.5 percent to 139,146,

while business arrivals decreased by 14 percent to 10,254 and

other arrivals dropped by 0.7 percent to 3097.

In October, the year-on-year consumer price index decreased

by 1.6 percent. This was due to a fall in the prices of food and

non-alcoholic beverages 1.5 percent, housing utilities 8.3

percent, transportation 7.0 percent, communications 8.0

percent, and recreation and culture 0.3. In the same month, the

price of clothing and footwear was up by 4.6 percent, of

household furnishings and operations 5.2 percent, healthcare

6.2 percent and education 12.4 percent

In November, the value of the riel was up against the US

dollar, while stable against the Thai baht and Vietnamese

dong, compared with the previous month. The riel traded at

KHR 4155/USD, KHR 126/ baht, and KHR 23 per 100 dong.

In September, the 12-month interest rate on riel bank loans

was 0.3 percent higher than in the preceding month and on

dollar loans was up by 0.7 percent. During the same period,

net foreign assets rose by 4.0 percent and private sector credit

by 1.0 percent and liquidity by 3.4 percent, while government

deposits fell by 5.5 percent. Additionally, total liquidity (M2)

increased by an annualised rate of 70 percent, and money

(M1) by 25 percent. The growth of M2 over the previous 12

months was 46 percent.

In November, gasoline and diesel fuel prices increased by 1.0

and 1.1 percent, respectively from the preceding month.

Gasoline sold for KHR3940/ℓ and diesel at KHR3390/ℓ. The



edaysaMg lk;éfø 3940erol¼lIRt nig m:as‘Ut 3390erol¼lIRt . GgárenAextþ)at;dMbg eLIgéfø 2/0° dl; 2600erol¼KILÚRkam b:uEnþ Føak;éføenAextþkMBt ¬13°¦ . GgármanéføefrenAtambNþaextþ kMBg;s<W ¬2500erol¼KILÚRkam¦ kMBg;cam ¬2600erol¼KILÚRkam¦ esomrab ¬2500erol¼KILÚRkam¦ nig sVayerog ¬2600erol¼KILÚRkam¦ . RtIFøak;éfø 17° dUcKñaenAextþ)at;dMbg nigesomrab 21° enAextþkMBg;s<W 3/3° enAkMBt nig 23° enAsVayerog . sac;RCUkFøak;éfø 6/3° enAextþkMBg;s<W nig 2/8° enAkMBt b:uEnþ eLIgéfø 3/2° enA)at;dMbg . cMeBaHextþkMBg;cam esomrab nig sVayerog sac;RCUkrkSaéføefrdEdl .

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enAExvicæikaenHEdr enAelITIpSarBiPBelak sENþkesog lk;éfø 393/6duløar¼etan b¤ eLIgéfø 2/5° eFobnwgExmun eBat lk;éfø 172duløar¼etan ¬ekInéfø 3/8°¦ ehIy ekAs‘U éfø 2496¼etan ¬ekIn8/2°¦ .

price of rice in Battambang rose 2.0 percent to KHR2600/kg,

while in Kampot it fell 13 percent. The rice price was stable in

Kompong Speu at KHR2500/kg, Kompong Cham at

KHR2600/kg, Siem Reap at KHR2500/kg and Svay Rieng at

KHR2600/kg. The fish price shrank by 17 percent in both

Battambang and Siem Reap, by 21 percent in Kompong Speu,

by 3.3 percent in Kampot and by 23 percent in Svay Rieng.

The price of pork dropped by 6.3 percent in Kompong Speu

and 2.8 percent in Kampot, while it increased by 3.2 percent

in Battambang. The pork price was constant in Kompong

Cham, Siem Reap and Svay Rieng

In October, the price of rice in the Thai market rose by 3.5

percent from USD593/tonne to USD614/tonne, while rubber

was unchanged from the previous month and maize and maize

products price decreased by 0.2 percent to USD187/tonne. In

the Vietnamese market, rice rose by 7.4 percent to

USD397/tonne, rubber by 8.7 percent to USD1842 and

cashew nuts by 3.5 percent to USD5250.

In October, international arrivals to Vietnam fell by 25

percent compared with September. The decrease was due to a

fall in tourist (25 percent), business (21 percent) and other (33

percent) arrivals.

In October, the year-on-year inflation rates in Japan and the

USA were -0.2 percent and in the Euro zone -0.1 percent,

while in Hong Kong it was 2.2 percent, in South Korea 2.0

percent and in China -0.5 percent. Inflation in Malaysia was -

1.6 percent, in Singapore -0.8 percent and in Thailand 0.4

percent.

In November, the value of Korean won depreciated by 0.9

percent from the preceding month against the US dollar, while

the Hong Kong dollar remained stable at HKD7.75/USD. The

value of Japanese yen depreciated by 1.3 percent against the

US dollar, the Euro by 0.7 percent, the Singapore dollar by 0.7

percent and the Thai baht by 0.4 percent.

During the same month, the price of soybeans on the world

market moved higher from the previous month by 2.5 percent

to USD393.6/tonne, maize by 3.8 percent to USD172/tonne

and rubber by 8.2 percent to USD2496/tonne.



skmµPaBesdækic©sMxan;² nig éføTMnijenAkm<úCa Main Economic Activities and Consumer Prices in Cambodia

Services Sector Approvals by CDC 2007 Q1–2009 Q3

0

500

1000

1500

2000

2500

3000

3500

4000

4500

USD

m

Hotels 0.0 0.0 2.9 0.0 0.0 0.0 0.0 323.8 0.0 0.0 17.2

Tourism 140.3 55.0 650.9 199.2 93.7 4015.0 3481.3 844.3 254.1 0.0 133.02

Others 195.4 83.0 304.0 111.9 54.5 49.9 969.3 171.4 241.5 0.0 21.097

07Q1 07Q2 07Q3 07Q4 08Q1 08Q2 08Q3 08Q4 09Q1 09Q2 09Q3

Including expansion projects. Source: Council for the Development of Cambodia

Foreign Visitor Arrivals August 2008–October 2009

139

133129

101214

3314

0

50

100

150

200

250

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

000'

per

sons

OtherBusinessHoliday

Source: Ministry of Tourism

Phnom Penh: Value of Construction Approvals June 2008–August 2009

Source: Municipality of Phnom Penh

Phnom Penh: Inflation Year-on-Year Percentage Changes

for October 2009 Source: National Institute of Statistics

Phnom Penh: Gasoline & Diesel Prices September 2008–November 2009

3390

3940

0

1000

2000

3000

4000

5000

6000

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

Riel

s/ℓ

Diesel

Gasoline

Source: CDRI

Interest Rates on 12-Month Bank Loans (%) June 2008–September 2009

22.45

23.08

23.02

15.86

16.45

16.33

0

5

10

15

20

25

Jul 0

8

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Riel loan rateDollar loan rate

Source: Economic & Monetary Statistics, NBC

0

50

100

150

200

250

300

Jun

08

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

USD

m

OtherFlatsVillas & houses

-1.6

-1.5

4.6

-8.3

5.2

6.2

-7

-8

-0.3

12.4

-10

-5

0

5

10

15

All items Fo o d & no n-a lco ho lic beveragesClo thing and fo o tware Ho us ing and utilitie sHH furnis hings and o pera tio ns HealthTrans po rt Co mmunicatio nsRecrea tio n and culture Educatio n



sßanPaBGRtabþÚrR)ak; nig CMnYyGPivDÆn_BIeRkARbeTs Exchange Rates and External Development Assistance Riels per US Dollar

September 2008–November 2009

Source: National Bank of Cambodia

Riels per THB & VND September 2008–November 2009


Monetary Survey (%) July 2008–September 2009

-100

-50

0

50

100

150

200

Jul 0

8

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Annualised growth rate (M2)Annualised growth rate (M1)Growth over the previous 12 months (M2)


Domestic Credit (%) July 2008–September 2009

-40-20

020406080

100120140160180

Jul 0

8

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

0102030405060708090100110

Annualised change in domes tic credit (left)Annualised change in private sector credit (left)P revious 12 months ' growth in domes tic credit (right)


Monetary Operations July 2008–September 2009


External Development Assistance Disbursement: Environment & Conservation

2000–2007 Source: Cambodia Aid Effectiveness Report 2007, CDC

4093

4172

4155

4077

4156

4138

3900

3950

4000

4050

4100

4150

4200Se

p 08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

Market rate

Official rate

117.

0

125.

412

5.8

24.3

23.5

23.3

114116118120122124126128130132

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

KH

R pe

r Bah

t

19212325272931333537

KH

R pe

r VD

N10

0

Thai baht (left)Vietnamese dong (right)

-6000-4000-2000

02000400060008000

100001200014000

Jul 0

8

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

KH

R bn

Liquidity Net Foreign Assets Private Sector Credit Government DepositsOther

0

5

10

15

20

25

30

35

2000 2001 2002 2003 2004 2005 2006 2007

USD

m



BaNiC¢kmµeRkARbeTs nig karGnuvtþfvikaCati External Trade and National Budget Operations

Imports: Cigarettes & Construction Materials June 2008–August 2009


Cambodia: Main Exports June 2008–August 2009

0

50

100

150

200

250

300

350

400

Jun

08

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

USD

m

0

1

2

3

4

5

6

7

8

USD

m

Total exports (left) Garments (left)Rubber (right) Fish (right)


Imports: Petroleum Products June 2008–August 2009


Current Budget Operations August 2008–October 2009

Source: MEF Bulletin Current Budget Revenue August 2008–October 2009

Source: MEF web site

Current Budget Expenditure August 2008–October 2009

Source: MEF web site

251

233241

10693

96

6741

46

0

100

200

300

400

500

600

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

KH

R bn

Non-taxImport and Export taxesDomes tic taxes

64.345.5

52.7

17.2

20.4 13.0

12.6

12.6 13.9

0

20

40

60

80

100

120Ju

n 08

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

KH

R bn

Cigarettes Cement Steel

132.

010

8.3

99.9

0

20

40

60

80

100

120

140

Jun

08

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

KH

R b

n 32

95

33

-200-150-100-50

050

100150200250

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

KH

R bn

392

22249

121

0

200400

600

800

10001200

1400

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

KH

R bn

Other servicesSubsidies and social assistanceWagesCurrent expenditure



éføes,ógGahartamextþkñúgRbeTskm<úCa Provincial Food Prices

Cambodia: Food Prices in Siem Reap Province September 2008–November 2009

Source: CDRI

Cambodia: Food Prices in Battambang Province September 2008–November 2009

Source: CDRI Cambodia: Food Prices in Kg Cham Province

September 2008–November 2009 Source: CDRI

Cambodia: Food Prices in Kampot Province September 2008–November 2009

50040007500

11000145001800021500

Sep-

08N

ov-0

8Ja

n-09

Mar

-09

May

-09

Jul-0

9Se

p-09

Nov

-09

Rie

ls/k

g

300070001100015000190002300027000

Rie

ls/k

g

Rice-Phka Knhei(left) Fresh fish (left)1st quality pork (right) 1st quality beef (right)

Source: CDRI

Cambodia: Food Prices in Svay Rieng Province September 2008–November 2009

50040007500

11000

1450018000

21500

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep-

09

Nov

-09

Rie

ls/k

g

3000700011000

15000

1900023000

27000

Rie

ls/k

g

Rice-Phka Knhei (left) Fresh fish (left)1st quality pork (right) 1st quality beef (right)

Source: CDRI

Cambodia: Food Prices in Kg Speu Province September 2008–November 2009

50040007500

1100014500180002150025000

Sep

08N

ov 0

8Ja

n 09

Mar

09

May

09

Jul 0

9Se

p 09

Nov

09

Rie

ls/k

g

30007000110001500019000230002700031000

Rie

ls/k

g


Source: CDRI

50040007500

11000145001800021500

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

Rie

ls/k

g

300070001100015000190002300027000

Rie

ls/k

g


50040007500

11000145001800021500

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

Rie

ls/k

g

300070001100015000190002300027000

Rie

ls/k

g

Rice-Phka Knhei(left) Fresh fish (left)1st quality pork (right) 1st quality beef (right)

50040007500

11000145001800021500

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

Rie

ls/k

g

300070001100015000190002300027000

Rie

ls/k

g




éføTMnijtamextþkñúgRbeTskm<úCa³ tammuxTMnij Provincial Goods Prices in Cambodia by Products

Cambodia: Rice Prices in Three Provinces

Source: CDRI

Cambodia: Rice Prices in Three Provinces

Source: CDRI Cambodia: Fish Prices in Three Provinces

Source: CDRI

Cambodia: Fish Prices in Three Provinces

Source: CDRI

Cambodia: Pork Prices in Three Provinces

Source: CDRI

Cambodia: Pork Prices in Three Provinces

Source: CDRI

2550

2400

255025

50

2600

2500

2200

2900

2500

2500

260025

002500

2475

2600

0

500

1000

1500

2000

2500

3000

3500

Jul 09 Aug 09 Sep 09 Oct 09 Nov 09

Riel

s/kg

BattambangKompong SpeuKompong Cham

225026

00

2400

2800

2600

2500

2500

2500

2500

2500

2600

2700 26

00

2600

2600

0

500

1000

1500

2000

2500

3000

3500


Riel

s/kg

KampotSiem ReapSvay Rieng

1000

0

1200

0

1350

0

1275

0

1225

0

1100

0

1400

0

1250

0

1100

0

1200

0

1125

0

9750

1175

0

1025

0

9750

0

2000

4000

6000

8000

10000

12000

14000

16000


Riel

s/kg


1000

0

1200

0

1350

0

1275

0

1225

0

1100

0

1400

0

1250

0

1100

0

1200

0

1125

0

9750

1175

0

1025

0

9750

0

2000

4000

6000

8000

10000

12000

14000

16000


Rie

ls/k

gBattambangKompong SpeuKompong Cham

1600

0

1550

0

1650

0

1650

0

1650

0

1500

0

1600

01650

0

1650

0

1600

0

1800

0

1800

0

1800

0

1800

0

1800

0

13500

14000

14500

15000

15500

16000

16500

17000

17500

18000

18500


Riel

s/kg


1750

0

1800

0

1700

0

1800

0

1800

0

1600

0

1600

0

1600

0

1600

0

1600

0

1500

0

1500

0 1500

0

1500

0

1500

0

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000


Riel

s/kg

KampotSiem ReapSvay Rieng



éføTMnij karnaMecj nig cMnYneTscrGnþrCatienAkñúgRbeTsCaédKUrbs;km<úCa Goods Prices, Exports and International Tourist Arrivals to Partners of Cambodia

Thailand: Prices of Rubber, Rice and Maize August 2008–October 2009

Source: Bank of Thailand, Foreign Trade and Balance of Payments

Vietnam: Prices of Rubber, Rice and Cashew NutsAugust 2008–October 2009

Source: General Statistics Office of Vietnam Thailand: Exports

August 2008–October 2009

Source: Customs Department of Thailand

Vietnam: Exports August 2008– October 2009

0

80

160

240

320

400

480

Aug

-08

Oct

-08

Dec

-08

Feb-

09

Apr

-09

Jun-

09

Aug

-09

Oct

-09

USD

m

20

40

60

80

100

120

140

USD

m

Rice (left) Rubber (left)

Cashew nuts (right)

Source: General Statistics Office of Vietnam

Thailand: International Arrivals October 2006–December 2007*

Source: Tourism Authority of Thailand *Data are available to December 2007.

Vietnam: International Arrivals August 2008–October 2009

0

50

100

150

200

250

300

350

400

Aug

-08

Oct

-08

Dec

-08

Feb-

09

Apr

-09

Jun-

09

Aug

-09

Oct

-09

000'

per

sons

Others

Business

Tourism

Source: General Statistics Office of Vietnam Data were estimated by the statistics office.

0

200

400

600

800

1000

1200

1400

1600

Oct

06

Dec

06

Feb

07

Apr

07

Jun

07

Aug

07

Oct

07

Dec

07

000

pers

ons

Air Land Sea

200

300

400

500

600

700

800

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

USD

m

0.51.01.52.02.5

3.03.5

4.0

USD

m

Rice (left)Natural rubber and similar natural gums (left)Cashew and similar nuts (right)

200400600800

100012001400

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

USD

per

tonn

e

100030005000700090001100013000

USD

per

tonn

e

Rice (left) Rubber (right)

Cashew nuts (right)

200

400

600800

1000

1200

1400

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

USD

per

tonn

e

0

500

10001500

2000

2500

3000

USD

per

tonn

e

Rice (left)Rubber (right)Maize and Maize Products (right)



skmµPaBesdækic© nig sßanPaBGRtaGtiprNaénbNþaRbeTsCaédKUrbs;km<úCa Economic Activity and Inflation Rates of Selected Economic Partners of Cambodia

Year-on-Year Growth of Main Exports: Japan (%)October 2008–September 2009

Source: Japanese Trade and Investment Statistics

Goods Exports: US, Euro Zone & Japan June 2008–August 2009

0

50

100

150

200

250

Jun

08

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

USD

bn

US Euro zone Japan

Sources: BEA, Eurostat and OECD

External Trade: Malaysia July 2008–September 2009

02468

10121416182022

Jul-0

8

Sep-

08

Nov

-08

Jan-

09

Mar

-09

May

-09

Jul-0

9

Sep-

09

ExportsImportsTrade balance

Source: Department of Statistics, Malaysia

Inflation Rates: US, Euro Zone & Japan (%) (price change from a year earlier)

-3

-2

-1

0

1

2

3

4

5

6

Aug

-08

Oct

-08

Dec

-08

Feb-

09

Apr

-09

Jun-

09

Aug

-09

Oct

-09

USA Euro zone Japan

Sources: IMF and Economist (1 December 2009)

Inflation Rate: China, Hong Kong & South Korea (%) (price change from a year earlier)

-3-2-10123456

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

China Hong Kong South Korea


Inflation Rate: Selected ASEAN Countries (%) (price change from a year earlier)

-6

-4

-2

0

2

4

6

8

10

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

Malaysia Singapore Thailand


-60-50-40-30-20-10

0102030

Oct

08

Nov

08

Dec

08

Jan

09

Feb

09

Mar

09

Apr

09

May

09

Jun

09

Jul 0

9

Aug

09

Sep

09

Manufactured goods MachineryElectricial machinery Transport equipmentTotal



GRtabþÚrR)ak; nig sßanPaBéføTMnijelITIpSarGnþrCati Exchange Rates and Commodity Prices in World Markets

KRW & HKD per USD September 2008–November 2009

Source: Federal Reserve Bank of New York

EUR & JPY per USD September 2008–November 2009


THB & SGD Per USD September 2008–November 2009


Rice: International Prices Index & Export Prices August 2008–October 2009

Sources: Osiriz/InfoArroz and InterRice Prices: Soybeans, Maize & Rubber

July 2008–September 2009 Source: Food and Agriculture Organisation and Malaysian Rubber Exchange

Prices: Crude Oil, Gasoline & Diesel September 2008–November 2009

Source: US Energy Information Administration

0200400

600800

10001200

140016001800

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

KRW

7.747.747.75

7.757.767.767.77

7.777.787.78

HK

D

KRW (left scale)HKD (right scale)

909498

102106110114118122126

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

JPY

0.600.630.660.690.720.750.780.810.840.87

EURO

JPY (left scale)

EURO (right scale)

1.35

1.38

1.41

1.44

1.47

1.50

1.53

1.56

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

SGD

28

30

32

34

36

38

40

42

THB

SGD (left scale)THB (right scale)

150

250

350

450

550

650

750

850

Aug

08

Oct

08

Dec

08

Feb

09

Apr

09

Jun

09

Aug

09

Oct

09

USD

/ to

nne

FOB

0

50

100

150

200

250

300

350

IPO

USA 2/4Thai 100% BIPO

2030405060708090

100110120130140150

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

Nov

09

USD

2030405060708090100110120130140150

US

Cen

tC rude oil: OPE C spot - U SD /barrel

Gasoline: U S Gulf C oast - U S cents/litre (right scale)D iesel: low sulphur N o.2 - U S cents/litre (right scale)

0

100

200

300

400

500

600

700

Jul 0

8

Sep

08

Nov

08

Jan

09

Mar

09

May

09

Jul 0

9

Sep

09

USD

/ to

nne

FOB

0

500

1000

1500

2000

2500

3000

3500

Soybeans: US No.1, Yellow (left scale)Maize: US No.2, Yellow (left scale)Rubber SMR 5 (right scale)



B½t’manesdækic© Economic News

B½t’manesdækic©sMxan;² ³ BlkrCMnaj CaKnøwHsMrab;kMeNInesdækic©Cabnþrbs;km<úCa ³ TIRkugm:anIl RbeTsPIlIBIn – kMeNIntMrUvkarBlkrCMnaj nigkarvinieyaK minRKb;RKan; kñúgkarbNþúHbNþalviC¢aCIv³ )anbegáItCabBaðakgVHBlkrCMnaj enAkñúg RbeTskm<úCa EdlCH\T§iBlelIplitPaB nigkMeNInesdækic©rbs;RbeTs . edIm,IedaHRsaybBaðaenH RkumRbwkSaPi)alénFnaKarGPivDÆn_GasuI (ADB) )anyl;RBmpþl;nUvsm,TancMnYn 24/5landuløar ecjBImUlniFiGPivDÆn_GasuIrbs; xøÜn sMrab;KMeragmYykñúgkarEklMGRbB½n§bNþúHbNþalkarGb;rMviC¢aCIv³ nigbec©keTs (TVET) rbs;rdæaPi)al edIm,I[RbB½n§enHGaceqøIytbPøam² eTAnwgkMeNIntMrUvkar kMlaMgBlkmµ EdlmankarGb;rM nigCMnajkargar . KMeragenH nwgpþl;nUvRbB½n§bNþúHbNþalcMruH nigFMTUlayCagmunmYy EdlTTYl karKaMRTBIvis½y]sSahkmµ nigedIrRsbCamYynwgtMrUvkarxagCMnajénvis½yesdækic© pøÚvkar nigminpøÚvkarnana . dMbUg KMeragenH epþatelI]sSahkmµbIy:ag KW Epñkemkanic sMNg; nig bec©kviTüaxagTMnak;TMng B½t’man nigesvaCMnYj edayeFVIkar EklMGKMrU énkmµviFIbNþúHbNþalCapøÚvkar nigminpøÚvkar cMeBaH ]sSahkmµTaMgbI . bnÞab;mkKMrUkarbNþúHbNþalRsedogKñaenH nwgRtUvdak;dMeNIrkarcMeBaH]sSahkmµ epSg²eTot . esdækic©km<úCa lUtlas;y:agxøaMgkñúgry³eBl 1TsvtSr_ knøgeTAenH bnÞab;BI km<úCa )anbþÚrBImUldæanesdækic©Ep¥kelIksikmµEbbRbéBNI eTACaesdækic©Ebb]sSahkmµ TMenIb . b:uEnþ vibtþihirBaØvtßúsaklnaeBlfµI²enH )anbg¥ak;el,ÓnénGRtakMeNIn esdækic©km<úCa ehIyeFVI[km<úCaRbQmmuxnwgPaBgayrgeRKaHBIhaniP½ynana eday sarEtmUldæanesdækic©tUcceg¥ótrbs;xøÜn . ksikmµ plitkmµ nig]sSahkmµ esvakmµ rYmcMENk 85° kñúgkarpþl;kargar nig 92° eTAkñúgplitplkñúgRsuksrub . elakRsI Wendy Duncan GñkÉkeTsxagkarGb;rMCamUldæanRKwHén naykdæan GasuIGaeKñy_rbs;FnaKar ADB )anmanRbsasn_fa {rdæaPi)al kt;sMKal;eXIjfa bBaðaTak;TgnwgplitPaB nigkarTak;Taj]sSahkmµfµI² KWCaerOgEdlcaM)ac;RtUvEt edaHRsay edIm,IbegáIncMruHkmµénesdækic©} . Kat; )anelIkeLIgpgEdrfa {rdæaPi)al manCMenOy:agmutmaMfa RbB½n§ TVET mantYnaTIsMxan; kñúgkarBüayamedaHRsay bBðaRbQmTaMgenH ehIy rdæaPi)alkt;sMKal;eXIj nUvtMrUvkarERbkøayRbB½n§ TVET [eTACaRbB½n§bNþúHbNþalRbkbedayKuNPaBmYy kñúgkarbnþCMrujtMrUvkarEdl Bak;B½n§nwg]sSahkmµ . enAeBldMNalKñaenH rdæaPi)alk¾)ankt;sMKal;eXIjnUv sar³sMxan;énkarpþl;karbNþúHbNþalCMnajmUldæanminEmnpøÚvkar edIm,ICYydl;yuv Cn nigGñkminmankareFVIenAtam TICnbT kñúgkarelIkkMBs; R)ak;cMNUlrbs;BYkeK . GñkEdlTTYl)anRbeyaCn_CacMbgBIKMeragenH KWRbCaCnminEmnkargareFVIenAtam CnbT edayrab;bBa©ÚlTaMgkmµkrEdlRtUv)anbBaÄb;BI ]sSahkmµkat;edr nig]sSah kmµepSg²eTotnaeBlfµI²enH edaysar rgkarb:HTgÁicxøaMg BIvibtþihirBaØvtßúsakl . eKrMBwgfa enAmunqñaM2020 cMnYnkmµkrEdlFøab;TTYl vKÁbNþúHbNþalBIRbB½n§ TVET nwgekIneLIg y:agticbMput 30° .

Economic News Highlights:

Skilled Workers Key to Cambodia’s Continued Economic Growth

MANILA, PHILIPPINES – Rising demand for skilled labour and inadequate investment in vocational training have created a shortage of skilled workers in Cambodia, impacting on productivity and economic growth.

To address these constraints, the Asian Development Bank’s Board of Directors has approved a USD24.5 million grant from its concessional Asian Development Fund for a project to improve the government’s technical and vocational education training (TVET) system to make it more responsive to the country’s growing need for a skilled and educated workforce.

The project will provide an expanded and more integrated training system that is endorsed by industry and better aligned with the skills requirements of the formal and informal economies. Initially, the project will focus on three industry sectors – mechanics, construction, and business services and information and communication technology – to develop models for formal and non-formal training programmes. Later, similar training models will be rolled out for other industries.

Cambodia’s economy has grown significantly over the past decade, as the country transitions from a traditional agrarian base to a modern industrialised economy. However, the recent global financial crisis has significantly slowed Cambodia’s economic growth rate and highlighted the country’s vulnerability to shocks due to its narrow economic base. Agriculture, manufacturing and the services industry account for 85 percent of employment and 92 percent of its gross domestic product.

“The government recognises that the issue of productivity must be addressed, as must the need to attract new industries to increase the diversification of the economy”, said Wendy Duncan, principal education specialist in ADB’s Southeast Asia Department. “It strongly believes that TVET has an important role to play in the effort to meet these challenges, and it recognises the need to transform TVET into a quality, demand-driven training system that is relevant to industry.” At the same time, the government recognises the continuing importance of providing non-formal basic skills training to help the young and unemployed in rural areas raise their incomes.

The primary beneficiaries of the project will be the rural underemployed, including workers recently displaced from the garment and other industries hit hard by the global financial crisis. As well, by 2020 it is expected that there will be at least a 30 percent increase in the number of employees holding formal TVET qualifications.

“Beneficiaries will acquire skills responsive to the needs of industries, which should raise productivity and incomes and benefit the economy as a whole”, said Ms Duncan.

The government will contribute USD3 million toward the project's total cost of USD27.52 million. The executing agency is the Ministry of Labour and Vocational Training. (Source: Asian Development Bank December 09)

Links to other economic news: 1. “Cambodia Targets Financial System Reforms to Bolster Growth, Cut Poverty” (http://www.adb.org/Media/Articles/2009/13081-cambodian-financial-system-reforms/) 2. “ASEAN, APEC secretariats take initiative to bolster trade ties in two regions” (http://news.xinhuanet.com/english/2009-11/13/content_12450629.htm retrieved on 8/12/09) 3. “Sustainable Urbanization Key to Sustainable Growth, Says ADB” (http://www.adb.org/Media/Articles/2009/13051-sustainable-economic-developments/)



Documents

Flash Report on the Cambodian Economy - Dec 2009