Mr Lim Hng Kiang at Luncheon with Singapore Business Community in Honour of Samdech Akka Moha Sena Padei Techo Hun Sen PM of the Kingdom of Cambodia

Opening Address by Mr Lim Hng Kiang Minister for Trade & Industry At the Luncheon with Singapore Business Community In Honour Of Samdech Akka Moha Sena Padei Techo Hun Sen Prime Minister Of The Kingdom Of Cambodia On Monday, 26 July 2010 at Shangri-La Hotel 

Samdech Akka Moha Sena Padei Techo Hun Sen

Prime Minister of The Kingdom of Cambodia

Distinguished Guests,

Ladies and Gentlemen,

INTRODUCTION

I am pleased to be here this afternoon at theSingapore Business Community luncheon. Let me begin by extending a very warm welcome and appreciation to Prime Minister Hun Sen for taking the time to grace this event.

I recall that just three months ago, Cambodian Deputy Prime Minister and Minister-in-charge of the Council of Ministers, His Excellency Dr Sok An was in Singapore to attend the Cambodia Forum 2010 organised by the Institute of Southeast Asian Studies (ISEAS) and the Cambodian Institute for Cooperation and Peace (CICP).At the forum, Dr Sok An introduced Cambodia as a new and exciting investment destination for business opportunities.

Today’s event is another timely opportunity to strengthen the linkages between Singapore Business Community and our Cambodian counterparts.In tandem with the strong post-crisis recovery, many Singapore companies are seeking opportunities in new emerging markets. Cambodia presents itself as a good investment choice.Judging by the strong business representation and attendance at today’s luncheon, I am confident that our companies are more enthusiastic than before about investment opportunities in Cambodia.

CAMBODIA’S ECONOMIC POTENTIAL

Increasingly, Cambodia is becoming an attractive investment destination in a wide range of sectors. This includes property development, energy, logistics, commerce and services, and textile. Cambodia’s economy has been growing steadily in recent years, registering a 5% expansion in 2008 before slowing down in 2009 due to the global economic crisis. The EIU forecasts Cambodia’s economy to expand 4% in 2010 and 5% in 2011.Cambodia’s increasing attractiveness as a new investment destination is also reflected in the rising Foreign Direct Investments (FDI) into Cambodia, marked by a significant four-fold year-on-year increase of US$7 billion in 2008.Cumulative inward FDI in the last 15 years stood at over US$17 billion.The increase in inward FDI underscores international investors’ growing confidence in Cambodia’s economic potential. At the same time, it marks the government’s firm commitment to create a conducive and pro-investment climate.

SINGAPORE’S ECONOMIC INTERESTS IN CAMBODIA

The bilateral economic relations between Cambodia and Singapore are warm and growing stronger all the time.This is evident from the rising bilateral trade and investments by Singapore companies in Cambodia.The improving bilateral trade has continued into the first 6 months of 2010, with total trade reaching S$1.3 billion, a notable 62% increase over the same period last year.

Singapore’s investments in Cambodia have also been on the rise.Last year, our investments increased eight-fold from a year before to reach US$278 million.This brings our cumulative investments in the last 15 years to US$604 million, making us Cambodia’s eighth largest foreign investor.

In view of the growing business interests, our economic agencies and business associations have stepped up their engagements in Cambodia since 2009.A total of 6 business missions and study trips were undertaken since 2009, to explore the potential investment opportunities in Cambodia.For example, last month, IE Singapore led an agri-food mission to various provinces of Cambodia. This was the second agri-food mission in the last 12 months, demonstrating the potential opportunities in Cambodia’s agri-food sector. The participating companies included HLH (Cambodia) Pte Ltd and Singapore Agri-Tech Pte Ltd.HLH’s interest is in large-scale corn cultivation for feedstock, while Singapore Agri-Tech’s interest lies in rice cultivation for both domestic and export purposes.

Besides industry-focused missions, broad-based missions have also been organised.The Singapore Business Federation (SBF) led a 25-member business mission to Cambodia in late 2009 with participants from various industries ranging from logistics, real estate, education and healthcare.

There are also increasing interests from Singapore’s Small-and-Medium Enterprises (SMEs) to explore trade and investment opportunities in Cambodia, particularly in the areas of agri-food, real estate, utilities, tourism and logistics.Our agencies and business associations have been actively assisting our SMEs to explore the Cambodian market.Just last week, with the support of SPRING, the Association of SMEs (ASME) led a business mission to explore business opportunities in Cambodia. We are pleased to note the success of some Singapore companies such as Moya Dayen. The Phnom Penh Water Supply Authority recently awarded two contracts worth a total of US$50 million for the company to build a water treatment facility in Cambodia.

CONCLUSION

I would like to encourage our companies to take advantage of the growth opportunities in Cambodia, and ride on the strong post-crisis recovery.

Today’s event is an excellent opportunity for both sides to work together, build networks and translate opportunities into action plans.

On this note, I would like to wish everyone a very productive and engaging luncheon.Thank you.